09 December 2016

Tokenization 101: A Token Of Secure Payment Solutions

Although the name ‘tokenization’ sounds complicated, the idea behind it is quite simple: Leave no information to be stolen while using payment systems. Tokenization replaces the data such as credit card or debit card sensitive data (PAN, expire date) with a surrogate value which is an undecipherable token. While an encrypted data can be deciphered through a “key”, a token cannot be reverse-engineered into the original data unless you have authorized access to the vault where the sensitive data is securely protected. So, even if a token used in a transaction is stolen, it will be just a bunch of random numbers which makes it impossible to steal money or information.

Tokenization is a true saviour of cardholders making the online shopping free of anxiety and fear of theft. Cardholders save tokenized data instead of sensitive data on their devices and use their cards whenever and wherever they want without any risk of fraud. Area division is another advantage; which means different tokens are created for different token requestors such as e-commerce companies for the same card so it becomes impossible to trace the original data.

But merchants have even better advantages kudos to tokenization. Certainly, the first advantage is building a stronger reputation and trust –which became the currency of the digital economy- among customers through reliable and speedy transactions. Removing card sensitive data from the payment environment, tokenization’s golden advantage, on the other hand, is reducing the scope, risks and costs associated with ongoing compliance with PCI DSS (Payment Card Industry Data Security Standards). Thus it becomes a genuine solution to the data breach. Last but not the least, merchants can manage their loyalty programs by analyzing the buying history of customers through designated tokens.

You might say; nothing can be that good, what is the catch? Here comes the importance of tokenization system’s sophistication, reliability and compliance with the regulations. You might want to choose the safest and the speediest tokenization system with a smart infrastructure and technology to enjoy all these benefits.

To that end, integrating its know-how, technology and creativity into its tokenization expertise, Cardtek has developed Tokenization solution. It has a competitive edge in terms of providing the new token structure compatible with the Token Service Provider specifications defined by EMVco, which sets submission and security standards for payment methods.

Primarily Cardtek’s tokenization solution offers the token service provider tasks. The actual security element is regarded as the production of a token for a dedicated task. The system compares the production purpose of the token with the information received from the transaction source and rejects transactions when an inconsistency occurs. On the second layer, it is developed for the internal security transformation of the institution. Through this transformation it is now possible to secure sensitive data stored in an open database by replacing them with tokens.

Cardtek's system also performs the storage and management of token clients. In addition to banks, mobile device providers, e-commerce sites, companies and systems such as HCE/NFC can benefit from token solutions. With its multi-layered access structure, the system is being developed in accordance with PCI requirements.

Till now Cardtek’s tokenization solution has provided end-to-end payment solutions for the leading institutions around the world by protecting sensitive payment data and it is ready to fraud-proof the entire payment ecosystem.




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