Sydney, Dec 21: In a groundbreaking move to enhance the security and efficiency of online card payments, the Australian Bank has released a comprehensive set of expectations for the tokenisation of payment cards and the storage of Primary Account Numbers (PANs).
This initiative, announced on December 21, 2023, is poised to revolutionize the way online transactions are conducted in Australia, with a strong focus on improving competition in the sector.
Under the new framework, the Bank mandates that all relevant industry participants, including merchants and payment service providers, embrace token portability and token synchronisation by the end of June 2025.
This significant shift aims to facilitate the linking of multiple tokens and enhance token synchronicity through the widespread use of a unique account identifier, known as the Payment Account Reference (PAR). PAR is envisioned to become a cornerstone in the Australian payments ecosystem, ensuring a more streamlined and secure transaction process.
A critical aspect of these expectations is the stringent security requirements set for the storage of sensitive debit, credit, and charge card information.
Post-June 2025, merchants and payment service providers failing to meet these minimum security standards, particularly compliance with the Payment Card Industry Data Security Standard (PCI-DSS), will be prohibited from storing customers’ PANs.
This directive underscores the Bank’s commitment to safeguarding consumer data in the digital age.
Another pivotal element in this initiative is the rollout of the eftpos core eCommerce tokenisation service, slated for completion by the end of March 2024.
This rollout is just the beginning, with subsequent releases planned to further support token portability and synchronisation.
A notable feature of this rollout is the focus on dual-network debit cards, which, when network-tokenised, will require tokens to be requested and stored for both domestic and international networks, subject to the support of both networks.
To steer this ambitious project, AusPayNet has stepped up to coordinate the industry’s efforts. Their role includes ensuring compliance with the Bank’s expectations and, if necessary, drafting more specific tokenisation standards.
This collaborative approach between AusPayNet and the Australian Bank highlights the industry’s commitment to adopting cutting-edge security measures, ultimately aiming to create a safer and more efficient online payment environment for all Australians.
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