What is credit card encryption?

The card itself, the terminal where the card is scanned, and the transmission of information between that terminal and the system's back end all use credit card encryption to significantly limit the likelihood that sensitive and priceless card information would be stolen. Either tokenization or encryption is used to accomplish this. It is now more crucial than ever to secure our accounts, with over 46% of Americans falling victim to fraud in the last five years. The card itself, the terminal where the card is scanned, and the transmission of information between that terminal and the system's back end all use credit card encryption to significantly limit the likelihood that sensitive and priceless card information would be stolen. Either tokenization or encryption is used to accomplish this. It is now more crucial than ever to secure our accounts, with over 46% of Americans falling victim to fraud in the last five years.

Encryption vs Tokenization

You can choose the protection strategy that is appropriate for your company by knowing how these two protection strategies differ from one another. Tokenization is the act of replacing a card's information with a created marker, or "token," to remove it from a company's internal network. A credit card with the numbers 1234 5678 8765 4321, for instance, would become H92JK7DUP4359L2ST while containing several different tokens for various retailers. Since thieves cannot break the coding back into the card number, these created numbers are useless to them.

With the use of an algorithm, encryption scrambles the card's data to make it unintelligible without the right key. The data is protected from the moment of purchase (in a store or online) until it reaches the intended recipient, making this an end-to-end technique. The data cannot be read while it is in motion, at rest, or until the system's key decrypts it, therefore there is very little chance that it might be stolen by a hacker. Both are fantastic options in the struggle against credit card fraud.

Encryption and Your Business

Companies all around the country are using EMV readers to improve pci encryption compliance as well as the security of transactional processes. By using these services, you may be sure that in the event that information is stolen, your company won't be held responsible under the Fraud Liability Shift. When these processes are in place to safeguard your company's reputation and legal standing, your clients will feel better knowing that they are not in danger, and you can rest easier.