Tokenization (data security) - Wikipedia

And heres something else thats cool: A new token can be generated for each online retailer so youll have a different code at all the places youve shopped. To be PCI compliant, merchants must install expensive end-to-end encryption systems or outsource their payment processing to a service provider who provides a "tokenization option." The service provider handles the issuance of the token value and bears the responsibility for keeping the cardholder data locked. The mapping from original data to a token uses methods which render tokens infeasible to reverse in the absence of the tokenization system, for example using tokens created from random numbers. This is in addition to any technical, architectural or operational constraint that tokenization imposes in practical use.

What Is Tokenization Technology?

Is this how the future will look? In databases for example, surrogate key values have been used since 1976 to isolate data associated with the internal mechanisms of databases and their external equivalents for a variety of uses in data processing. However, implementing new payment methods does not come without challenges.

Definition from m - SearchSecurity

Stateless tokenization enables random mapping of live data elements to surrogate values without needing a database while retaining the isolation properties of tokenization. How are tokens generated? Employing tokenization wont in and of itself make you PCI compliant, but its considered a best practice and can help to reduce PCI DSS scope. HVTs can also be bound to specific devices so that anomalies between token use, physical devices, and geographic locations can be flagged as potentially fraudulent.

Is tokenization the future of payment security?

In March 2014, emvco LLC released its first payment tokenization specification for EMV. Both tokenization and encryption are used to reduce the scope of PCI Compliance by reducing the amount of systems that have access to customers credit card information. Example of dynamic, transaction-specific tokens include cryptograms used in the EMV specification. See also: PAN truncation, continue Reading About tokenization, dig Deeper on Security Token and Smart Card Technology). For mobile payments, Apple Pay provides a perfect example of how tokenization works.

Payment Tokenization Explained - Square

It also makes it possible to create a buying history on the customers account that could be used to start a loyalty program. When you upload your card information into the app, Google creates a stand-in token, to represent your actual account number. This enables enterprises to avoid the need for back-end system modifications and allows data analysis operations to continue as usual. Storage of tokens and payment card data must comply with current PCI standards, including the use of strong cryptography. The business captures the customers PAN and sends it directly to a payment processor, usually a bank or financial institution, to process the payment.

What is Tokenization and Why Should Businesses Be Using

According to ACI, 54 of businesses cite security concerns as the primary reason why they are not investing more in their payment infrastructure. This is where tokenization comes.