A token of extreme security
Four reasons why tokenization matters to businesses like yours
Tokenization may sound complicated, but its beauty is in its simplicity.
Tokenization substitutes a string of random numbers—known as a token—for private data like payment account numbers. Instead of your full private number passing through multiple systems of varying security, your personal data is tokenized at point of entry. The actual data the token references is stored in highly secure token vaults.
Tokenization makes the process of accepting payments easier and more secure for businesses. Tokenization is more than just a security technology—it helps create seamless payment experiences and satisfied customers. Tokenization reduces risk from data breaches, helps foster trust with customers, minimizes red tape and drives technology behind popular payment services like mobile wallets.
Best of all, businesses reap all these benefits today. Let’s take a look.
Tokenization reduces risk from data breaches
Criminals target businesses that accept credit and debit cards because that’s the raw data that fuels fraud. Hackers target insecure systems that contain this raw data, and sell the stolen information or use it themselves to make fraudulent purchases.
The costs to businesses are all too familiar. Ponemon Institute’s 2018 “Cost of a Data Breach” study pegged the average cost of a data breach at $3.86 million. Ponemon’s cost estimate for each lost or stolen record containing confidential information now stands at $148.
Tokenization protects business from the negative financial impacts of a data theft. Even in the case of breach, valuable personal data isn’t there to steal. Tokenization can’t protect your business from a data breach—that takes best practices and a commitment to rigorous procedures. But tokenization makes your system dramatically less attractive to criminals and reduces the financial fallout from any potential breach.
Tokenization helps foster trust with your customers
Consumers have spoken with a clear, unambiguous and unified voice, demanding safety and security wherever they shop. In the age of fraud, building trust and loyalty with customers begins with keeping their payment and other personal data safe.
In a 2018 CA Technologies/Frost & Sullivan study, 59 percent of consumers said a data breach had a negative impact on their trust in the impacted company. Beyond avoiding the worst case scenario of a data breach, using advanced security such as tokenization fosters customer trust. Consumers don’t want their payments data falling into the wrong hands. Demonstrating a strong commitment to the security of customer data is foundational to trust.
Tokenization offers an anchor in defense against threats to your business’ reputation. Working quietly behind the scenes, tokenization is helping businesses maintain and grow customer trust and loyalty.
Tokenization means less red tape for your business
Businesses that accept credit and debit cards need to be in compliance with the Payment Card Industry Data Security Standard (PCI DSS). Tokenization makes achieving and maintaining compliance with industry regulations a significantly easier lift.
Tokenization addresses requirement set #3: protecting cardholder data at rest. PCI DSS seeks to reduce retention of sensitive data and safely govern its storage and deletion. Tokenization satisfies this critical requirement by never letting sensitive cardholder information touch your systems in the first place.
Tokenization isn’t a compliance silver bullet. But working with a PCI-compliant vendor offers a smart approach to payment security. Leading payment technology companies offer tokenization as part of their payment processing services. That lets you focus on growing your business while your payment partner reduces red tape and helps keeps you in compliance.
Tokenization drives payment innovations
The technology behind tokenization is essential to all the ways we buy and sell today. From secure in-store point of sale acceptance to payments on-the-go, from traditional eCommerce, to a new generation of in-app payments, tokenization makes paying with the devices that drive our lives easier—and safer—than ever.
The rising popularity of in-store payments with your customers’ mobile devices features tokenization. When consumers pay with a mobile wallet such as Apple Pay or Google Pay, their personal credit card data is stored on their phone as a token, making their phone even safer than plastic cards. Online, tokenization is revolutionizing eCommerce payments by improving both safety and user experience. Tokenization is similarly representing payments made via increasingly popular dedicated apps. In short tokenization is making seamless commerce a safer reality virtually everywhere it takes place.
Optimizing your payment provider
Tokenization services are offered by your payment provider. Worldpay is a global leader in payment technologies and a pioneer in the use of tokenization to protect businesses of every size. To learn more about how tokenization can help keep your business safe, connect with one our payment experts at 1-877-826-1725.