PAR (payment account reference) real purpose is to reduce card not present fraud, increase security, and create a consistent global framework for all participants. It is Developed by EMV Co. Read the 5 Tricky Credit Card Transactions.
- What is PAR
- How to use PAR
- Advantages of PAR
What is Payment Account Reference (PAR)?
Association in response sends the PAR value (Payment account reference). It cannot be used for authorizations as a substitute to PAN (Customer Credit Card number or Payment Account Number).
The length of the PAR value is 29 bits. The first four letters are the Bin controller. The remaining 25 characters are Alpha-numeric.
How to Make Use of PAR Value?
Basically, PAR is a reference to a particular payment channel transaction. You will receive PAR value with every card/payment transaction.
The real use is you can trace back your Transaction type/channel/Payment Type with the help of PAR. And, you can identify which card used for this transaction.
PAR data cannot be used to initiate financial transactions; no authorization, capture, clearing, or settlement message can be initiated using a PAR.
Stored Credential (COF) Vs PAR Value.
- Basically, the credentials of PAN stored in a secured server(This is called a token server). The token server assigns a token to a PAN – It is just like a substitute of PAN.
- In COF (stored credential), you can use token instead of PAN – Like the card, not present transactions.
The diagram shows the list of Card-not-present Transactions, where Merchants use Credential on file data (COF).
PAR is a new concept that helps you analyze (deep in granularity) the payment transaction type, to know about PAN, transaction channel. Basically, you can track the transaction.