Do you run a retail store or online store? Then, you should consider protecting the data of credit cardholders when they want to process the transactions. As a store owner, you should consider implementing the latest technologies to prevent fraudulent activities and hacking to ensure complete protection. Not only that, they allow you to improve the reputation of your business in the markets that will increase growth levels in the markets. You should choose options such as tokenization while accepting credit card payments of customers. 

What is tokenization?

Tokenization is a process that allows you to protect sensitive data with an algorithmically generated number called a ‘token’ which will replace the details of credit cards. Unlike encryption, tokenization is not reversible and you can store the tokenized data. The process utilizes randomly generated data that provides high security to your business. It enables you to operate your business with minimal disruptions that will help ensure peace of mind. The primary objective of tokenization is to prevent credit card thefts and hacking that will help minimize potential threats. 

Why your business needs tokenization for credit card payments?

Tokenization will provide several advantages for you thereby showing ways to operate your business with ease. Furthermore, you can run your business smoothly in the markets that give ways to generate high income. 

Here are some benefits offered by tokenization for credit card payments.

1. Reduces risk 

One of the main advantages of tokenization is that it allows you to reduce risks caused by lawsuits and data breaches. The process gives ways to store customer data that is safe for you and your business. 

2. Adds security 

With tokenization, you can add an extra layer of security from the mobile devices used by your customers. Another thing is that it makes feasible methods to protect the data from unauthorized transactions. 

3. Compliance 

Your business should meet PCI compliance standards when you want to process credit card transactions. Tokenization can help you in compliance with PCI DSS that gives ways to gain more advantages. It enables you to store the customer data safely to avoid complex issues. 

4. Builds trust with customers 

With tokenization, you can build trust with your customers that will help improve your business in the markets. You can get more customers for your business which gives ways to generate more revenues. 

How tokenization protects you in payments?

You should know how tokenization protects you to in payment scenarios that will help follow the same properly. 

1. Apple pay tokenization

Apple pay allows tokenization for cardholders after taking the picture of a credit card and loading the same into iPhone 6. Apple will send the details to a card-issuing bank or network with a series of randomly generated numbers. Furthermore, it will program the numbers on the phones after receiving the data from a bank. You can ask your customers to choose Apple pay tokenization to ensure high security. 

2. Android pay tokenization 

Tokenization in Android phones works similar to Apple to Apple pay tokenization. Google will create a stand-in ‘token’ to represent the account number of a cardholder. That means no one can get the actual information of a card in this process. You can recommend Android pay tokenization for your customers when they want to make credit card payments. 

Is tokenization right for your business?

If you want to protect the sensitive data of credit cardholders, then tokenization will help you in this process. On the other hand, you should keep certain things in mind when you want to invest money in tokenization for your business. 

1. Storage pricing

You should plan for additional architecture and memory storage that goes beyond your initial cost implementation. If you choose single-use tokenization, then it will limit your storage and also slows down the response time. You have to pay more for the storage when you use a cloud-based provider. 

2. Implementation 

It is wise for you to understand where sensitive data exists in your business environment before implementing tokenization. You should ask some questions to a service provider that will help gain more ideas. The best way to do this is to create a card flow program that will help get answers to your questions.

3. Choosing the right tokenization solution provider

Although PCI tokenization is a straightforward process, you need to consider selecting the right provider for meeting essential needs. Apart from that, it enables you to avoid some common pitfalls in the implementation process. You should determine whether a third party or using a payment processor is right for you. Using the payment processor provided by your tokenization solution provider limits you to work with that provider only. On the other hand, you can work with multiple payment processors with a third-party PCI compliance that will help grow your business in the markets.