01May, 2016

Tokenization & Wallets

How to secure credit card data with tokenization

With cybercrime and fraud a constant concern these days, tokenization is an invaluable step in a PCI DSS compliance journey as it offers unique benefits when securing your credit card data.

So how confident are you that the technology you currently have in place will protect your credit card data? Are you sure it will keep you safe from hackers? That’s where tokenization comes in.

Put in simple terms, tokenization acts as a non-sensitive surrogate value helping to protect information you don’t want exposed. It does this by using  tokens to replace sensitive financial data; this helps protect sensitive information by removing sensitive data  from applications, stores, employee access and the various processes involved in storing or processing  credit cards, thereby reducing the risk of accidental exposure and unauthorised access.

As such if a data breach occurs, and well-designed tokens are stolen, there is no risk of fraudulent exposure.

As is often the case with larger merchants, security and innovation often compete against each other, this should not be the case as a well-designed cloud based tokenization solution can enhance security and innovation while reducing security compliance costs.

For example you might be a Level 1 merchant with more than 100 front end payment interfaces, you might have a significant number of stored credit cards, mobile device and call centre card processing channels, with multi-bank  processing across Australia and New Zealand, with a divisional company structure across both countries – with Omni channel business objectives and reduced security budgets. In this case multi-channel cloud based tokenization is going to be critical to you.

In relation to PCI DSS compliance, the benefits of tokenization include: the cardholder data environment and the number of systems in scope is eliminated or significantly reduced; it reduces employees’ access to sensitive data; it deals with historical and new customer interactions; it provides great security while reducing audit needs and PCI costs and the compliance costs associated with updated security standards are avoided as  these are passed on to the cloud-based service provider such as IP Solutions.
If you have any questions regarding PCI DSS compliance or you require assistance with achieving or maintaining compliance within budget, please feel free to contact us to discuss your unique requirements.

When a team such as ours discusses PCI DSS Level1 compliant service capabilities with a company, it often includes a presentation to senior management which focuses on credit card tokenization and ancillary PCI DSS remediation services.

Tokenization, including its impact on the business, would be considered and examples of comparable compliant organisations would be used to highlight these critical points:

  • How PCI DSS compliance can reduce the costs and risks associated with data breeches;
  • How to learn from other’s mistakes and avoid banking/industry pitfalls;
  • How compliance with PCI DSS can be effectively achieved;
  • Typical impacts on large organisations with multiple business units;
  • How flexible vendor partnerships and practical experience is best leveraged to achieve PCI DSS business objectives;
  • How to leverage technology to minimise business disruption, lead times and project costs;
  • How changes to business work flows can be supported by appropriate tokenization services;
  • The practical insights and benefits associated with tokenization, when applied to your specific business processes.

 To find out more about tokenization and PCI DSS Compliance, you can download a free copy of Achieving and Maintaining PCI DSS Compliance here.  Or contact us here to book in a consultation.

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