Photo Credit: Bangkok Post
Credit card fraud in Thailand is projected to ease following the introduction of Visa’s Network Token technology, which replaces traditional card numbers with secure digital tokens to enhance payment security.
Under the upgraded system, the standard 16-digit card number is substituted with a token, offering stronger data protection and lowering the risk of fraudulent transactions.
Visa tokenisation
Many consumers store their credit card details — including the 16-digit number — across multiple digital platforms such as ride-hailing apps, streaming services, e-commerce sites and utility payment portals.
This widespread storage of sensitive data increases exposure to potential breaches and financial fraud, said Angsumalin Fordham, head of product and value-added services at Visa Thailand.
In recent years, numerous Thai cardholders have been affected by stolen card information, with fraudsters using compromised details to make unauthorised transactions. Card-skimming schemes often involve a series of small charges — typically 37 or 41 baht per transaction — processed rapidly in succession, sometimes resulting in 20–40 consecutive deductions.
“With the adoption of Visa Network Token technology, we anticipate a decline in credit card fraud and card-skimming cases in Thailand, similar to trends observed in other markets,” Ms Angsumalin said.
Tokenisation works by replacing sensitive card data with a secure digital token. Each transaction is further safeguarded by a unique cryptogram, significantly reducing the value of stolen payment information and limiting its misuse beyond a designated merchant or payment channel.
In 2024, the technology contributed to a 34% reduction in global Visa credit card fraud compared with the previous primary account number (PAN)-based system. Visa also reported a 4.7% increase in payment approval rates, attributed largely to stronger issuer confidence in the enhanced security framework.
Rollout in Thailand
Visa Thailand has partnered with Omise, a regional payment gateway, to deploy the Network Token solution for merchants nationwide. The initiative is designed to bolster payment security, reduce fraud and improve transaction authorisation rates in digital commerce.
Ms Angsumalin said Visa is encouraging both financial institutions and merchants to transition from storing card data under the traditional PAN model to tokenisation.
Through the collaboration, Omise will assist merchants — particularly small and medium-sized enterprises — in implementing the new system and upgrading their infrastructure.
“Our bank partners in Thailand have already completed the initial adoption of Visa Network Token technology,” she said. “We expect the full transition from PAN to digital tokens to take place within four to five years.”
To address challenges faced by cardholders in cancelling recurring subscriptions, Visa has also introduced a Recurrence API under the Network Token system. The feature enables users to manage, review and toggle subscription payments directly through their banking applications.
Advancing digital commerce
Jitsupa Cheowit, senior vice-president and head of growth at Omise Asia-Pacific, said the company will provide end-to-end support, including training programmes, to help merchants migrate from traditional card storage methods to token-based systems.
In Thailand, Omise has already implemented the technology for businesses such as Coway, a water purifier provider, and TrueMoney, a regional e-payment and financial services company.
Following adoption, Coway recorded an 8.5–15% improvement in card payment success rates compared with its previous system. TrueMoney began using the technology earlier this year and reported a 0.91% increase in transactions, particularly at 7-Eleven outlets, according to Visa Thailand.
Ms Jitsupa said the solution is well-suited for a broad range of online businesses, including e-commerce platforms and digital merchants. Companies operating subscription or recurring-payment models — such as streaming services, insurers, tourism operators and retailers — are also expected to gain significant benefits from adopting tokenisation technology.