What is credit card tokenization?

Credit card tokenization is the process of totally replacing sensitive data with a token, a randomly generated, one-of-a-kind placeholder, from a company's internal network. For example, if a card number was 1234 5678 8765 4321, the final result would resemble E67TY9GP27X. In order to provide a higher level of protection for both the customer and your business, this token is used to access, retrieve, and maintain a customer's credit card information.

This credit card security technique is being adopted by more and more businesses around the United States. What more should you know before selecting whether tokenization is the best option for your company? Many people find it simple to use, more secure than end-to-end encryption, and reasonably priced.

Tokenization and You

You must annually comply with the stringent PCI rules whenever your company receives, transmits, processes, or maintains credit card information at a physical location, online, over the phone, or by mail. It can be challenging to stay in compliance with these rules, and no one wants to be held accountable in the event of criminal action. With the use of tokenization, you can affordably ensure that all of your transactions are secure, your customers' information is kept private, and the PCI criteria are met. The risk of credit card fraud has never been lower thanks to security measures like EMV readers and smart cards.