Payment Conversion Understand credit card tokenization and how it helps in the anti-fraud scenario.
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One of the main concerns in e-commerce is, without a doubt, security against fraud , which can lead to reputational risks and financial losses for businesses of all niches and sizes.
And it’s not just entrepreneurs and market players how to write email subject lines that get replies who have this concern. According to a study by Mastercard and Kantar Consulting, 87% of consumers are aware that their data can be exposed to leaks and attacks and consider information security to be a fundamental issue in digital transactions.
In this context, card brands have implemented an web navigation and architecture guide important Payment Conversion innovation: credit card tokenization . The goal of the service is to reduce data exposure during online transactions, protecting sensitive information of customers and businesses themselves.
What is tokenization?
Tokenization is a solution offered by card brands. Such as Visa and Mastercard, which store sensitive. Card data in their own vaults, in an encrypted form. And replace this information in the transactional flow with a token.
The token, in turn, is an alphanumeric code that can only be decoded with a cryptogram (a type of key or password), which is exchanged with each transaction.
This way, only the token is available throughout the entire transaction flow chain. Therefore, even if a database is hacked, the tokens have no value to the attackers, since they cannot decode them, making the entire transaction flow much more secure.
Difference between tokenization and encryption
Both tokenization and encryption function as extra layers of security for the transactional flow.
Encryption replaces card data with an unreadable code. Each number, letter and space is disguised by another chosen by a system, based on a sophisticated encryption algorithm.
In other words, the principle is very similar to the barbados businesses organization tokenization process. The big difference is that encryption can be reversed, as long as the pattern behind it is known.
Therefore the PCI Council considers
encrypted data to be sensitive information.
It is worth remembering that payment methods use data Payment Conversion encryption to operate financial flows. Tokenization does not replace this security standard, but complements it.
Therefore, what experts recommend is that the two solutions be worked on together.
How do I tokenize transactions in my business?
Credit card tokenization is a feature that is gradually being implemented across the market. As a rule, the merchant does not need to take any action to tokenize the transactions that go through their business.
At the moment, the payment methods themselves are responsible for requesting tokenization from the brands.