Network tokenization through the schemes connects merchants with issuing banks. This results in various advantages compared to PSP proprietary tokens. Instead of storing sensitive card data like card numbers (PANs) in their Card-on-File (CoF) systems, PSPs can store scheme tokens and significantly reduce liability. Scheme tokens are processed with EMV transaction cryptograms, which increases the security of payment transactions to a level similar to the security of a card-present transaction. In addition, this increases approval rates based on risk decisions.