Protect Payment Information with Tokenization
It's the process of protecting sensitive data with an algorithmically generated number
With the unprecedented rise of technology and exponential increase in digital payments, data security has become one of the biggest concerns and priorities for businesses. Merchants have a responsibility to their clients to handle their sensitive payment information securely and tokenization is a smart and effective way to protect themselves and their customers.
What is Payment Tokenization?
Tokenization is the process of protecting sensitive data by replacing it with an algorithmically generated number called a token. Often tokenization is used to prevent credit card fraud. In credit card tokenization, the customer’s primary account number (PAN) is replaced with a series of randomly generated numbers, which is called the “token.” These tokens can then be passed through the internet, or the various wireless networks needed to process the payment without actual bank details being exposed. The actual bank account number is held safe in a secure token vault.
The token is unique for every transaction, meaning it cannot be used in another shop for a different purchase. When leveraging payment tokenization solutions, the customer data that is stored by online stores becomes worthless for hackers and data payment breaches will not affect users since none of their sensitive information is stored on servers.
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