Merchants with recurring billing or card-on-file needs may sometimes request to migrate tokens when switching from their current processor to our PayFac offering.
A token in recurring payments is like a nickname for a credit card. Instead of saving the actual card number, a secure, random code, called a token, is generated. The merchant can charge the card again in the future (for things like subscriptions or monthly bills) and the system uses the secure token to process the payment but the merchant never needs to store or interact with the real card number, making it much more secure.
Migrating tokens let’s the merchant seamlessly move these secure tokens from one processor to another which avoids any disruption in service or billing. Token migration is ideal, but feasibility depends on the current processor.
We’ll outline the three options to manage that transition from a prior processor to the PayFac.
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NOTE: This is specific to our PayFac. Processes may vary for referral partners.
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This option allows the old processor to continue billing existing cards using their current tokens while also having all the cards/tokens to be processed through us.
Pro: This allows merchants greater flexibility since they can let shorter contracts continue to run their course and for longer ones, they have more time to update the cards without interruption in service.
Con: This means maintaining a processing agreement with the prior processor and continuing to pay them junk monthly fees ($5–$75/month for PCI compliance/non-compliance) on top of transaction processing fees.
Summary: This approach avoids subscription disruptions, letting existing tokens run their course while new ones are created through us. However, long-term reliance on the old processor can be costly for the merchant.
This would allow the store to send an email to all their current customers that have saved tokens asking them to update their card(s) on file. The emails will send users to a landing page that lists the cards in use and the rental contracts they are tied to (if applicable). The page will list the store’s information and logo if they have been configured on the Profile page of the Payment Portal.
Once updated, the old token will be discarded and the new token will be used going forward.
Pro: This option is ideal for merchants with fewer subscriptions or those wanting to end relationships with prior processors to save on fees.
Con: Sometimes customers, when reminded they have a subscription, may wish to cancel it or customers may not be willing to enter their payment information online.
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NOTE: Even merchants using Option 1 can switch to this as old tokens phase out.
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