In today’s business world, we all know that making online payments is not secure. To protect your business payment systems and optimize PCI compliance, tokenization technology has been introduced. It is more than just a security technology as it dramatically boosts data security and lowers PCI DSS audit costs and scope.
In this post, we are going to talk about tokenization in detail. So let’s get started without any delay.
Tokenization is a solution that blocks credit card numbers entered into a business payment acceptance system and changes credit card numbers with a token. This token is used as the actual card to support client requests and facilitate reporting without disturbing regular operations. However, the randomly created tokens have no value or meaning to hackers on the occasion of a data breach.
Moreover, tokenization makes the process of accepting payments secure and more accessible. It helps in establishing a smooth payment experience and satisfied clients. Tokenization lowers risk from data breaches, minimizes red tape, helps foster trust with consumers, and drives technology behind top payment services, such as mobile wallets. Some features of tokenization are as follows:
The purpose of tokenization is to eliminate any personal or original sensitive payment data from your enterprise system, replace each information set with a token, and store the data in a safe cloud space – separate from your corporate systems. When you proceed with the payment using a token stored in the system, only the tokenization system can interchange the token with the PAN (Primary Account Number) and send it to the payment processor for approval. Also, your tokenization systems never record, store, or transfer the PAN – but just the token.
As mentioned, tokenization replaces the credit card number with a token (randomly generated code), which does not make any sense to hackers.
Businesses use tokenization to impede raw card numbers from entering the system of the merchant. When a field with raw card number entry appears, the online payment system introduces a secure browse column, catches the number outside the merchant’s ERP application, retrieves & stores it effectively, and returns a token or T in its place.
Tokenization allows the application to include no usable credit card values, only tokens. It lowers the number of audit items by 60% – saving significant time and money. A system without raw credit card values may approve for SAQ (Self Assessment Questionnaire) with 139 questions instead of SAQ D with 326 questions. Moreover, unlike an encrypted card value, a token or automatically generated code cannot be reverse-engineered to disclose the actual card number.
Tokenization is suitable for all companies with subscription-based models or businesses that produce significant revenue with repeat clients. Also, if you want to offer your customers a smooth experience at the checkout stage after shopping, you may consider investing in tokenization. With this system, tokens can be stored securely and used to activate “one-click” payments for future transactions – delivering an even shopping experience.
Tokenization offers several advantages for different types of businesses. Some of the key benefits are as follows:
Hopefully, this post has helped businesses understand tokenization and how it can simplify PCI compliance while lowering liability, risks, and overhead. Tokenization enables you to outsource the storage and handling of confidential information to a secure third party for optimum compliance and security. This advanced technology ensures that your payment environment or system is free of sensitive data to significantly lower risks linked to a data breach.
Moreover, the tokenization is uniquely designed to accept and tokenize confidential information, resulting in a detailed compliance and security solution that delivers unparalleled flexibility for security experts in healthcare, insurance, retail, e-commerce, and more.