Category: SaaS

How Do You Price Products Under UPI MDR Changes

How Do You Price Products Under UPI MDR Changes? Ultimate Guide

Posted on | by dpgadmin

How Should Businesses Reprice Their Products After UPI MDR Changes?

For years, UPI payments cost merchants nothing. The UPI MDR changes will alter that. From 15 October 2026, a new merchant discount rate, or MDR, applies to some UPI payments. Many owners now ask a fair question. Should we raise prices, absorb the fee, or find a smarter path? This guide answers that question in plain words.

The rules are new, so details may shift. Check your bank or payment provider for the latest terms. Talk to your chartered accountant before you change any price. The steps below are general guidance, not financial advice. They give you a clear starting point for your own numbers.

What the UPI MDR Changes Mean for Your Business

MDR is a fee that a merchant pays to process a digital payment. It is usually collected by banks and payment providers. Under the new framework, a 0.4% MDR applies to eligible person-to-merchant UPI payments above Rs 2,000. Reports say the fee is capped at Rs 300 per transaction. Payments up to Rs 2,000 remain free, and so do person-to-person transfers.

Some sectors get a flat, lower charge. Reports list railways, telecom, insurance, fuel, and farm inputs in this group. The flat fee in those cases is Rs 5. Small merchants are said to stay exempt. Furthermore, customers do not pay the fee. The merchant does.

Here is a simple example. A customer pays Rs 3,000 for an order. The fee at 0.4% is Rs 12. You receive Rs 2,988 in your account. For a single sale, that sounds small. However, the total adds up when you sell hundreds of orders each month.

Meanwhile, cards already carry a fee for merchants. UPI at 0.4% is lighter than most card costs. Therefore, shifting customers away from UPI may not save you money. In short, think of this as one more line in your cost sheet. Treat it with math, not panic.

Who Feels the Change Most?

High-ticket sellers will feel it first. Think of electronics, furniture, jewellery, and B2B supplies. Online stores with large baskets see more orders above Rs 2,000. Low-ticket shops feel far less impact. Food stalls and small grocers mostly stay below the limit.

Sector matters too. Fuel, telecom, insurance, and rail payments are reported to carry a flat Rs 5 fee. Those businesses may see almost no change. Marketplaces and platforms may handle the fee differently, so contracts should be read closely. Fees are often deducted before settlement. Settlement reports should be checked line by line.

How to Measure the Real Cost to Your Margins in UPI MDR

Start with your own data. Pull the last three months of UPI sales. Count only the payments above Rs 2,000. Multiply that total by 0.4%. Note that the Rs 300 cap and any flat fees may change the final number.

Next, compare the fee with your margin, not your price. This is the step most owners miss. Say your gross margin is 20% on a Rs 3,000 sale. Your margin is Rs 600, and the fee takes Rs 12. That is 2% of your margin. Now say your margin is only 3%. The margin is Rs 90, and the fee takes 13% of it.

This view shows who needs to act. Healthy margins can often absorb the change. In contrast, thin margins cannot. As a result, a fixed price rise across all products is rarely the best move. Look at each product line on its own.

A simple sheet makes this easy. List each product, its price, and its margin. Add the expected fee for orders above Rs 2,000. Sort the list by fee share of margin. Products at the top are the ones to fix first. Decisions are guided by data, not guesswork.

Also check where else payments leak profit. Look at refunds, chargebacks, delivery costs, and gateway fees. Sometimes a small fix there saves more than the new MDR costs. For example, better address checks can cut returns. Lower returns protect margin quietly.

Consider timing as well. The new rules start on 15 October 2026, so plan your changes before then. Festive sales often begin around this time. Price boards and websites should be updated ahead of launch. Old quotes must be honored if you promised them. Contracts with large clients should be reviewed early.

Smart Ways to Reprice Products After UPI MDR Changes

You have four main options. Each one suits a different type of business. You can mix them. Test any change on a small group first.

Option 1: Absorb the Cost

Absorbing the fee keeps prices stable. It works when margins are healthy and competition is tight. It builds goodwill with loyal customers. However, you must track the cost closely. Review it every quarter so it does not grow unnoticed.

Option 2: Build the Fee Into the Price

Next, add a small amount to the base price of affected items. The math is simple. To protect your net price, divide it by 0.996. A Rs 3,000 item sells near Rs 3,012. Most buyers will not notice a change this small. Round to a clean number like Rs 3,015 for a smooth look.

Round prices with care. Prices ending in 9 or 5 are trusted by many shoppers. New prices should be tested on a few products first. Results are compared with the old prices after two weeks. Rollback plans are prepared in advance.

Be careful with separate payment charges. Rules on extra fees for UPI can be strict. Check with your bank and legal advisor first. Many merchants prefer a blended price for this reason. It is easier to explain.

Option 3: Use Tiered Pricing and Order Thresholds

Some businesses add a free-delivery bar or a bundle deal. This lifts basket size and spreads the fee over more profit. Others offer small discounts for prepaid orders on cheaper payment modes. Use these carefully and keep offers fair. Never split one payment into two just to dodge the fee, since that may break rules.

Option 4: Improve Your Product Mix

Push higher-margin items. Trim products that barely earn a profit. Renegotiate supplier rates where you can. Small gains here can cover the MDR many times over. Thus, repricing is only one lever among several.

Similarly, supplier deals matter too. Volume discounts are often available when orders are planned early. Payment terms can be stretched to ease cash flow.

How to Tell Customers About Price Changes Without Losing Them

Clear words build trust. Explain changes in one or two short lines. Instead, focus on value, not on the fee. Avoid blaming banks or the government. Customers care about what they get.

First, give notice before you change prices. A week or two works well for most stores. Update your website, invoices, and social pages together. Train your support team on simple answers. Consistent replies stop confusion.

Sales teams need a short script. Questions are asked most often at checkout, so support staff must be ready. Answers should be kept short and friendly. Internal notes are shared with every channel, from chat to phone.

Watch your data after the change. Track conversion rate, cart size, and refund rate. Compare them with the weeks before. If sales drop sharply, review your move. You can roll back a change in a single day.

Keep your finance and tech teams aligned. Your payment gateway reports show fees per order. Match them with your books each month. Automate this if you can. Clean reports make every later decision easier.

Final Thoughts: Reprice With Data, Not Fear

The UPI MDR changes are real, yet they are modest for most sellers. The 0.4% rate is small, and many payments stay free. What matters is your margin, your product mix, and your customer mix. Measure the true cost first. Pick the mix of options that fits your brand.

Start this week. Pull your UPI data, run the margin math, and pick one product line to test. Review results after a month. Small, careful changes protect profit and trust together.

Costs are tracked, prices are tested, and customers are informed. That is the whole plan in one line.

How Do You Price Products Under UPI MDR Changes

Frequently Asked Questions

What are the UPI MDR changes for merchants?

From 15 October 2026, a 0.4% MDR applies to eligible person-to-merchant UPI payments above Rs 2,000. Smaller payments remain free. Check your provider for exact terms.

Do customers pay the UPI merchant discount rate?

No. The merchant pays the fee. Customers pay only the price you set.

Should I raise all my prices after UPI MDR changes?

Not always. Check margins for each product first. Thin-margin items may need a change, while others can absorb the cost.

Is it legal to add a UPI surcharge?

Rules on extra payment charges can be strict. Ask your bank and legal advisor before you add any separate fee. A blended price is often simpler.

How can I calculate the UPI MDR cost for my business?

Total your UPI sales above Rs 2,000 and multiply by 0.4%. Compare that fee with your gross margin. Remember the cap and any flat fees.

Also Read:

How Do UPI MDR and Payment Gateway Fees Compare?

How Do You Handle CTO Transitions Without Friction? Ultimate Guide

How Do You Handle CTO Transitions Without Friction

How Do You Handle CTO Transitions Without Friction? Ultimate Guide

Posted on | by dpgadmin

When Your Co-Founder CTO Steps Down: Maintaining Product Momentum During Executive Technology Transitions

Losing a technical co-founder is one of the hardest moments a startup can face. The CTO often holds deep product knowledge, technical vision, and team trust. When they step down, uncertainty spreads quickly.

However, this moment does not have to derail your company. With the right approach, founders can maintain product momentum and keep the team focused. This guide explains how to manage a co-founder CTO transition without losing direction.

We will cover communication, technical continuity, and rebuilding confidence across your team and stakeholders.

Why CTO Transitions Feel So Disruptive

A co-founder CTO is not just an employee. They often carry unwritten knowledge about the codebase, architecture decisions, and product history. This makes their exit feel especially disruptive.

Engineering teams may worry about direction. Without clear leadership, priorities can become unclear, slowing down development significantly. Meanwhile, other departments may question the company’s overall stability.

Investors also pay close attention to leadership changes. A sudden CTO exit can raise concerns about internal conflict or company health, even when the departure is amicable. Managing this perception carefully matters just as much as managing the technical transition.

Customers, too, may notice delays if product releases slow down. Therefore, addressing the transition quickly and transparently helps protect relationships across every stakeholder group.

Immediate Steps After a Co-Founder CTO Steps Down

The first priority is communication. Inform your engineering team directly and honestly. Avoid vague statements that create more questions than answers.

Next, identify an interim technical leader immediately. This could be a senior engineer, another co-founder, or an external advisor. Having someone visible in charge prevents confusion during the transition period.

Document critical technical knowledge as soon as possible. Schedule sessions with the departing CTO, if possible, to capture architecture decisions, system dependencies, and ongoing project details before they leave.

Review your product roadmap next. Some projects may need to pause temporarily while priorities are reassessed. Being honest about short-term delays is better than overpromising and missing deadlines later.

Finally, communicate with investors proactively. A clear, confident explanation of your transition plan reassures stakeholders far more than silence or delayed updates.

Maintaining Product Momentum During the Transition in CTO

Momentum is easy to lose during leadership gaps. To prevent this, focus on smaller, achievable milestones instead of large, complex projects during the transition period.

Empower your engineering team to make decisions within clear boundaries. Micromanaging during uncertainty often slows progress further. Instead, trust your team’s expertise while providing clear priorities.

Consider bringing in a fractional or interim CTO if the transition will take time. This provides technical guidance without rushing a permanent hiring decision under pressure.

Regular check-ins help maintain visibility into progress. Weekly updates, even brief ones, keep everyone aligned and reduce uncertainty about project status.

It also helps to celebrate small wins publicly during this period. Highlighting completed features or resolved issues reassures the team that progress continues despite the leadership change.

Finding the Right Long-Term Technical Leadership in CTO

Rushing to hire a permanent CTO often leads to poor fit. Instead, take time to clearly define what your company needs from its next technical leader.

Consider whether you need someone focused on scaling infrastructure, building new products, or managing a growing engineering team. These are very different skill sets, and clarity here prevents costly hiring mistakes.

Involve your engineering team in the hiring process where appropriate. Their input helps identify candidates who will fit well within existing team culture and technical practices.

External advisors or board members can also provide valuable guidance during this search. Their outside perspective often helps founders avoid rushed decisions driven by short-term pressure.

Once you find the right candidate, plan a thoughtful onboarding process. Introduce them properly to the team, existing systems, and ongoing projects to set them up for success from day one.

Rebuilding Team and Stakeholder Confidence

Trust takes time to rebuild after a major leadership change. Consistent, transparent communication is the most effective tool founders have during this period.

Share regular updates about progress, even when there is no major news to report. Silence often creates more anxiety than honest, incremental updates.

Recognize the emotional impact on your team as well. A co-founder leaving can feel personal, even for employees who were not close to them directly. Acknowledging this openly shows strong, empathetic leadership.

With investors, focus on demonstrating continued execution. Hitting product milestones, even small ones, proves that the company remains stable and capable despite the transition.

Over time, consistent delivery rebuilds confidence more effectively than any single announcement or reassurance ever could.

Protecting Engineering Culture Through the Change

Engineering culture often reflects the personality of its technical founder. When that person leaves, culture can shift in subtle but important ways.

Pay attention to team rituals that mattered under the previous leadership. Code review practices, planning meetings, and communication norms often carry the departing CTO’s influence. Decide deliberately which practices to keep and which may need adjustment.

Involve senior engineers in preserving what worked well. They often understand the day-to-day culture better than founders who are less involved in technical details. Their input helps maintain continuity even as leadership changes.

At the same time, avoid forcing every practice to stay exactly the same. New leadership, even interim leadership, may bring valuable improvements. Balance respect for existing culture with openness to healthy evolution.

Clear documentation also protects culture during transitions. Written guidelines on coding standards, deployment processes, and team norms reduce reliance on any single person’s institutional memory going forward.

Learning from Companies That Handled This Well

Many successful companies have navigated co-founder CTO transitions without losing momentum. A common thread among them is early, proactive planning rather than reactive scrambling.

These companies often maintain detailed technical documentation continuously, not just during a crisis. This habit alone significantly reduces the disruption caused by any sudden leadership change.

They also tend to build strong second-tier technical leadership early. Senior engineers who can step up temporarily provide a natural safety net during unexpected transitions.

Clear, calm communication during the actual transition period is another shared trait. Founders who address concerns directly, rather than avoiding difficult conversations, tend to retain team trust more effectively.

Finally, these companies treat the transition as a growth opportunity rather than purely a setback. New leadership sometimes brings fresh perspective that strengthens the product and team culture over time.

How Do You Handle CTO Transitions Without Friction

Conclusion

A co-founder CTO stepping down is undoubtedly challenging, but it does not have to derail your company’s progress. Clear communication, strong interim leadership, and a thoughtful hiring process can help maintain product momentum throughout the transition.

Focus on transparency with your team, investors, and customers. With the right approach, your company can emerge from this transition stronger and more resilient than before.

Frequently Asked Questions

1. What should founders do immediately after a co-founder CTO leaves? Communicate honestly with the team, appoint interim technical leadership, and document critical technical knowledge before the transition is complete.

2. Should we rush to hire a new CTO? No. Taking time to define your exact needs leads to better long-term hiring decisions than rushing under pressure.

3. How do we maintain investor confidence during a CTO transition? Proactive, transparent communication and continued product execution help maintain investor trust during leadership changes.

4. Can an interim CTO help during this period? Yes, a fractional or interim CTO can provide technical guidance while you search for a permanent replacement.

5. How long does a typical CTO transition take? This varies widely, but most startups need several months to fully stabilize leadership and hire the right long-term replacement.

Also Read:

How Does a Virtual CTO Compare to Full-Time CTOs? Ultimate Guide

How Do You Implement AI Dynamic Pricing Today? Ultimate Guide

How to Build a SaaS Subscription-First Payment Model?

How to Build a SaaS Subscription-First Payment Model?

Posted on | by Ruben

SaaS businesses thrive on recurring revenue. Therefore, they need special payment systems. They cannot just use a simple “buy now” button. Instead, they need systems built for subscriptions. This means taking money again and again, over time. Truly, the way a SaaS business handles these payments is key to its success. It impacts how customers pay. It also affects how much money the business makes.

Many SaaS companies pick the wrong payment setup at first. They might use basic gateways. These gateways are not made for subscriptions. Consequently, this often leads to big problems later. It causes bad customer experiences. Moreover, it makes managing money very hard. Always remember, a “subscription-first” payment model is vital for SaaS. By choosing the right gateway integrations, businesses can grow easily. They can also keep customers happy. This means steady income and faster growth.

How to Build a SaaS Subscription-First Payment Model?

The SaaS Challenge: Recurring Revenue is Different

First, let’s understand the core challenge for SaaS businesses. Their income comes from subscriptions. Customers pay regularly. This could be monthly, yearly, or for special usage. This is very different from a shop where customers buy things once. Clearly, this difference means SaaS needs special payment tools. These tools must handle ongoing payments. Therefore, standard payment setups are often not enough.

Why Standard Gateways Don’t Fully Fit SaaS Needs

Most traditional payment gateways are built for one-time sales. They are good for a single purchase. However, they struggle with the complex world of subscriptions.

Here are some key limits of basic gateways for SaaS:

  • Recurring Billing: They do not easily set up payments to happen automatically every month or year. Thus, this requires manual work.
  • Failed Payment Retries: If a payment fails (e.g., card expires), they do not automatically try again. Consequently, this means lost customers.
  • Proration: If a customer changes their plan mid-month, figuring out the correct partial charge is hard. Therefore, this requires complex math.
  • Upgrade/Downgrade: Changing subscription levels is messy. It means canceling the old plan and starting a new one.
  • Customer Portals: Customers cannot easily manage their own subscriptions (change card, upgrade) without help.
  • Analytics: Tracking metrics like churn and lifetime value (LTV) is difficult. This is because data is not set up for subscriptions.

A “subscription-first” approach solves these problems. It uses integrations made for recurring payments. Moreover, it supports the unique needs of a SaaS business model. This helps manage customer relationships. Furthermore, it also secures future income.

What is a “Subscription-First” Model? Your Growth Blueprint

So, what exactly is a “subscription-first” model for payment gateways? It means choosing and setting up payment systems with recurring revenue as the main focus. It is not an afterthought. Instead, it is the core of your payment strategy. Truly, this approach ensures all aspects of subscription billing are handled smoothly.

Building Your Payment System for Recurring Success

Here are the key parts of a subscription-first model:

  1. Specialized Gateway/Processor: You pick a payment gateway. This gateway is designed for subscriptions. Examples include Stripe Billing, PayPal recurring payments, or Spreedly. These systems have features for ongoing payments.
  2. Automated Recurring Billing: The system automatically charges customers on their chosen schedule. You set it once, and it runs itself. This prevents missed payments.
  3. Dunning Management: This is a smart system for failed payments. If a card expires, it automatically tries to charge again. Furthermore, it sends emails to customers to update their info. This helps reduce “involuntary churn.”
  4. Flexible Plan Management: It lets customers easily upgrade or downgrade their plans. It also handles the math for partial payments (proration) correctly. This makes changing plans simple.
  5. Self-Service Customer Portal: Customers get their own page. There, they can change their payment method. They can also view invoices. They can even upgrade or cancel their own subscriptions. This reduces support tickets.
  6. Subscription Analytics: The system tracks important numbers. These include monthly recurring revenue (MRR). It also tracks customer churn rate. This helps you understand your business health.
  7. Integration with CRM/ERP: It links with your customer relationship management (CRM) software. It also links with your enterprise resource planning (ERP) system. This gives a full view of each customer.

Truly, a subscription-first model is crucial for SaaS. It takes away payment headaches. It lets businesses focus on building great products and keeping customers happy.

Key Integrations: Choosing the Right Tools for Your Stack

Building a strong subscription-first model needs the right tools. It means choosing the best payment gateways. It also means linking them with other key business systems. Clearly, these integrations must work together seamlessly. Therefore, careful selection of your payment stack is vital for long-term success.

Your Essential Payment Stack Components

Firstly, select a primary payment gateway that specializes in recurring payments. Look for features like strong API documentation, global reach, multi-currency support, and robust dunning management. Companies like Stripe, Braintree, and Adyen are popular choices. This is because of their comprehensive subscription features. This ensures smooth, ongoing transactions.

Secondly, integrate with a subscription management platform if your gateway is basic. Some gateways offer full subscription features. However, others focus only on processing. Tools like Chargebee, Recurly, or Zuora handle complex logic. They manage plans, trials, upgrades, and billing. They sit between your app and the gateway. Furthermore, connect to your CRM system (e.g., Salesforce, HubSpot). This links payment data with customer profiles. Sales and support teams then have a full view of each customer. This helps personalize interactions.

Additionally, integrate with your accounting software (e.g., QuickBooks, Xero). This automatically pushes payment and invoice data. It greatly simplifies financial reconciliation. Moreover, it saves hours of manual work. Lastly, consider analytics tools that pull data from your payment stack. They provide deep insights into MRR, churn, LTV, and customer behavior. Truly, by carefully integrating these key tools, SaaS businesses build a powerful, automated payment ecosystem. This ecosystem supports growth and operational efficiency.

Security and Compliance: Protecting Your Subscribers and Business

Handling recurring payments means managing sensitive customer data. Therefore, security and compliance must be top priorities. A breach of trust can destroy a SaaS business. Clearly, choosing integrations that meet strict industry standards is non-negotiable. Truly, protecting your subscribers’ data is as important as your product itself.

Safeguarding Data and Meeting Industry Standards

Firstly, ensure all your payment gateways and subscription platforms are PCI DSS compliant. PCI DSS is a set of rules for handling credit card data. This protects cardholder information. Never store sensitive card data on your own servers. Instead, let your integrated platforms handle it securely.

Secondly, implement strong fraud detection tools. Recurring payments can be targeted by fraudsters. Your integrations should offer features to spot suspicious activity. This includes velocity checks, IP analysis, and device fingerprinting. This protects your revenue. Furthermore, comply with global data privacy regulations like GDPR and CCPA. This is especially important if you have international subscribers. Ensure your payment stack handles data consent, storage, and access requests correctly.

Additionally, use tokenization for card data. When a customer enters their card, the gateway converts it into a unique, random string of numbers (a token). This token is used for future payments. The actual card number is never stored by you. This greatly reduces risk. Truly, by focusing on robust security features and strict compliance, SaaS businesses build trust. They also protect themselves from legal and financial risks.

Optimizing for Growth: Reducing Churn and Boosting LTV

A subscription-first model is not just about taking payments. Instead, it is a powerful tool for optimizing growth. It helps reduce churn (customers leaving) and boosts LTV (lifetime value of a customer). Clearly, every SaaS business knows that keeping existing customers is often cheaper than finding new ones. Therefore, smart payment integrations play a huge role in customer retention.

Strategies to Keep Customers and Maximize Value

Firstly, effective dunning management is critical for reducing involuntary churn. If a card expires or a payment fails, your system must automatically try again. It must also send clear, friendly emails to the customer. This helps recover lost revenue. Moreover, it keeps customers active. Secondly, provide a seamless self-service customer portal. When customers can easily update their payment info, change plans, or view bills, they feel in control. This leads to higher satisfaction. It also reduces frustration.

Furthermore, use flexible billing options. Offer monthly, yearly, or usage-based plans. Let customers choose. This caters to different needs and budgets. It can attract more subscribers. Also, track and analyze your subscription metrics closely. Look at churn rates for different plans. See where payments fail most often. Use these insights to improve your product or payment process. Truly, by using your gateway integrations strategically, SaaS businesses can actively work to reduce churn. They can also increase the lifetime value of each subscriber.

Best Practices: Implementing Your Subscription-First Model

Implementing a successful subscription-first model requires careful planning and execution. It is not a one-time setup. Instead, it is an ongoing process of choosing the right tools, integrating them well, and continually optimizing. Clearly, a well-thought-out strategy will lead to long-term success. Therefore, following these best practices is essential for any SaaS business.

Your Blueprint for Subscription Payment Success

Firstly, start with a clear plan. Understand your pricing models. Know your customer segments. List all the features you need (e.g., trials, coupons, prorating). This helps you pick the right tools from the start. Secondly, choose scalable integrations. Your payment stack must grow with your business. Pick gateways and platforms that can handle more transactions. They must also handle more subscribers without major overhauls. Cloud-based solutions are often best.

Furthermore, test everything thoroughly. Test all payment flows. Test upgrades, downgrades, cancellations, and failed payments. Make sure dunning emails are sent correctly. This ensures a smooth experience for your customers. Also, monitor your metrics constantly. Keep a close eye on MRR, churn, payment success rates, and customer LTV. Use this data to find problems and make improvements. Lastly, gather customer feedback. Ask subscribers about their payment experience. What is easy? What is hard? Use their input to refine your process. Truly, by following these best practices, SaaS businesses can build a robust, customer-centric subscription payment system. This system will support continuous growth and strong customer relationships.

Frequently Asked Questions (FAQs)

Q1: What is “dunning management” in simple terms?

Dunning management is the process of automatically trying to collect money when a recurring payment fails. Examples are an expired credit card. It includes retrying the card. It also includes sending automated emails to the customer. These emails ask them to update their payment information. It helps prevent losing subscribers due to payment issues.

Q2: Why can’t I just use PayPal buttons for my SaaS subscriptions?

Basic PayPal buttons are fine for single payments. However, they lack the advanced features needed for a true SaaS subscription model. They do not easily handle automatic retries for failed payments. They also do not handle prorated billing, customer self-service portals, or detailed subscription analytics. You need a more robust, specialized system.

Q3: What is involuntary churn, and how do gateway integrations help reduce it?

Involuntary churn happens when a customer leaves not by choice. This is because their payment failed. Examples are an expired card or insufficient funds. Smart gateway integrations reduce it through automated dunning management. This system automatically attempts to recover failed payments. It also notifies customers to update their details, saving the subscription.

Q4: Should I build my own subscription billing system or use an off-the-shelf solution?

For most SaaS businesses, using an off-the-shelf solution (like Stripe Billing or Chargebee) is much better. Building your own is very complex and costly. It is also hard to maintain for security and compliance. Specialized solutions are already built to handle all the complexities of recurring billing.

Q5: What is “tokenization” and why is it important for payment security in SaaS?

Tokenization replaces sensitive credit card numbers with a unique, encrypted, random string of characters (a “token”). This token is then used for all future payments. It is important because your business never actually stores the real credit card number on its servers. This greatly reduces your risk in case of a data breach.

 

Also Read: Why Should You Merge All Payment Gateways Into One View