During tokenization, a string of random numbers, called a token, is used in place of private information like payment account numbers. When you swipe, dip, or type in your credit card information online, your personal data is tokenized so that it doesnt go through multiple systems with different security levels. The actual data that the token points to is kept in token vaults that are very safe. Fraudsters have no use for the tokens themselves.

Tokenization makes it easier and safer for businesses to accept payments. Tokenization isnt just a security technology; it also helps make payments easy and keeps customers happy. Tokenization lowers the risk of data breaches, builds trust with customers, cuts down on paperwork, and is at the heart of popular payment services like mobile wallets. Even better, businesses can get all of these benefits right now.

Tokenization lowers the chance of a data breach

Criminals go after places that accept credit and debit cards because payment information can give them a lot of useful information. Hackers go after unprotected systems that have this information on them. They sell the stolen information or use it to make fraudulent purchases.

Businesses know all too well what it costs them. The 2018 Cost of a Data Breach study by the Ponemon Institute found that the average cost of a data breach is $3.86 million. Ponemon now thinks that each lost or stolen record with private information will cost $148.

Tokenization helps keep businesses from losing money because their data was stolen. Even if there is a breach, there is no valuable personal information to steal. Tokenization cant stop a data breach from happening to your business, but it can make it less expensive if it does.

Despite providing high security, tokenization isn’t expensive. In fact, you can avail free tokenization by visiting https://www.verygoodsecurity.com/use-cases/tokenization-api and using the free tokenization API.

Tokenization helps build customers’ trust 

Wherever they shop, people want to feel safe and secure. In a time when fraud is a threat to the entire economy, the best way to build trust and loyalty with customers is to keep their payment information and other personal information safe. In a 2018 study by CA Technologies and Frost & Sullivan, 59% of consumers said that a data breach made them less likely to trust the company that was affected.

Using advanced security measures like tokenization builds customer trust and helps avoid the worst-case scenario of a data breach. People dont want their information about how they pay to get into the wrong hands. Customers like it when you show that you care a lot about keeping their information safe.

Tokenization means businesses have less paperwork to deal with

The Payment Card Industry Data Security Standard says that businesses that accept credit and debit cards have to follow its rules (PCI DSS). Tokenization makes it much easier to comply with industry regulations and keep doing so.

Tokenization meets the third requirement set, which is to protect cardholder data while it is at rest. PCI DSS tries to limit how long sensitive data is kept and make sure it is stored and deleted safely. Tokenization meets this important need by making sure that sensitive cardholder information never gets into your systems.

Its not a silver bullet for compliance. But working with a vendor that is PCI-compliant is a smart way to protect payment security. As part of their payment processing services, the best companies that make payment technology use tokenization. This lets you focus on growing your business while your payment partner cuts down on red tape to help keep your business in compliance.

Tokenization drives innovation

Tokenization is an important part of many of the ways we buy and sell things today. Tokenization makes it easier and safer than ever to pay with a device, whether its at a secure point of sale in a store or while youre on the go. It can be used for everything from traditional eCommerce to a new generation of in-app payments.

Tokenization is a feature of mobile payments in stores, which are becoming more and more popular. When people use a mobile wallet like Apple Pay or Google Pay to pay, a token of their credit card information is stored on their phone. 

Biometric security and other advanced authentication measures that are built into smartphones add an extra layer of security.

Tokenization is a key part of eCommerce because it makes payments safer and improves the user experience, whether they are shopping online, on their phones, or in an app.