What is network token? Definition and example

Network token

A network token is a replacement for a card number issued through the card scheme's token service, such as Visa Token Service or Mastercard MDES, that is bound to one token requestor, updated automatically when the card is reissued and used with a per-transaction cryptogram.

Also called: scheme token, network tokenization, VTS token, MDES token, tokenized card, Visa Token Service, card network token

Updated 15 October 2026

How does a network token work?

The token requestor sends the card number to the scheme’s token service provider, such as Visa Token Service or Mastercard Digital Enablement Service. With the issuer’s approval, the service returns a token in the same format as a card number but restricted in use, for example to one merchant. For each payment the requestor asks for a cryptogram, a one-time value that proves the token is used by its owner. The standard behind this is the EMV Payment Tokenisation framework. When the card is replaced or its expiry date changes, the token service updates the link and the token keeps working.

Why do network tokens matter for approval rate?

Two effects. Issuers see a scheme-validated credential with a cryptogram, which some treat as lower risk. And stored credentials stay current. As an illustrative example: a merchant with 50,000 stored cards where 3% are reissued each month has 1,500 cards a month that would start failing with expired or invalid card declines. With network tokens most of those keep working without the customer doing anything.

How are network tokens different from PSP tokens?

A PSP token is a reference inside one provider’s vault. A network token is issued by the card scheme and recognised by the issuer, so it carries lifecycle updates and a cryptogram. The two are often combined: the PSP or platform vault stores the network token instead of the raw card number.

Where does Omno use it?

Omno’s tokenization stores cards at the platform level for saved-card payments. Whether a network token is used in authorization depends on the connected PSP or acquirer that processes the payment.

Frequently asked questions

Do network tokens replace 3-D Secure?

No. A network token with its cryptogram proves the credential is being used by the party it was issued to, but it does not authenticate the cardholder. Where strong customer authentication is required, 3-D Secure or an exemption is still needed.

Who can request a network token?

A token requestor registered with the scheme's token service. That can be a merchant, a PSP, an acquirer or a platform acting for merchants. Many merchants get network tokens through their PSP rather than registering themselves.

Do network tokens improve approval rates?

Card schemes say they do. Visa says its network tokens deliver up to a 5% increase in authorization rates and up to a 50% reduction in fraud compared with card numbers. Much of the gain comes from credentials that stay current when cards are reissued, which Adyen's documentation describes.