Running a business online has its fair share of risks, particularly now that cyber-threats are more sophisticated than ever. Luckily, e-commerce businesses are turning to a new strategy to help prevent security breaches. This strategy is called tokenization for e-commerce, and it’s completely revolutionizing e-commerce transactions.
What Is Tokenization?
Tokenization is a technological process through which the sensitive data of consumers, such as credit card numbers, is removed and encrypted. It is replaced with unique identifying symbols that serve as a placeholder (or token) for that data. Sellers can use the token to retrieve or access customers’ credit card info. Their real credit card information is stored somewhere safer and more secure than an e-commerce website. Tokenization removes the need for merchants to store any credit card information themselves. Instead, it allows them to store the sensitive data on the server of a payment provider, which is likely more sophisticated and secure than their own.
The Benefits of Tokenization for E-Commerce Businesses
When businesses use tokenization, their payment processor turns their customers’ data into irreversible and unique tokens. This means that if it’s intercepted or hacked, the information has no inherent value. More importantly it also can’t be used to commit fraud. If tokenization is used from the start of customers’ transactions, their data is protected early. This minimizes the risk of ever having their real data intercepted and compromised.
If businesses use tokenization, and they do experience some kind of security breach, they can look into what happened without having to worry about customer information getting into fraudsters’ hands. Tokenization is by far one of the safest ways for e-commerce businesses to protect the information of consumers.
If you run an e-commerce business, and you want to make sure your customers’ data stays safe, consider using tokenization. You’ll end up with happier customers because their information is safer. And you’ll be happier yourself because you’ll experience a lower overall security risk.
Tokenization also helps e-commerce businesses save money and energy. They don’t have to deal with all of the complex certification processes and infrastructure required to meet PCI standards, which are necessary when storing customers’ credit card information. Businesses can, instead, minimize the cost and effort of keeping customer data by putting the responsibility in the hands of payment providers like IntegraPay.
At IntegraPay, we talk a lot about protecting your brand’s reputation, integrity and the security of your business through PCI Compliance and fraud mitigation strategies. With IntegraPay as your payments partner, you have access to our certified PCI DSS compliant solutions. Backed by our Australian Financial Services Licence (AFSL), giving you the peace of mind that your customer’s data is secure. If you need any assistance with the above or anything else in regards to secure payments, feel free to contact us, we are only too happy to help!