In today’s world of online transactions, the risk of a data breach from stolen credit cards is always present. Once a criminal has your card number and security code, there is nothing stopping them from draining your funds in just minutes – leaving you responsible for the charges that follow.
Credit card tokenization introduces an extra layer of protection by replacing your credit card number with a secure token. Tokens are randomly generated numbers that can be used for a single purchase or multiple transactions, but cannot be used to access your actual credit card number.
This process is completed by the merchant’s payment processor, who receives your credit card information and replaces it with a token. When you make a purchase, your information is sent and the token is removed and replaced with your actual credit card number. This process makes it nearly impossible for a criminal to access this sensitive data.
How does the technology work?
When you place an order, instead of using your billing information to create a new account or add charges to an existing one, we securely store a token that represents your credit card. This token is linked to your account and can be used for future purchases.
Each time you make a purchase, the token is passed along with your order, and our payment processor removes it and replaces it with your actual credit card number. This way, your billing information remains safe and secure – even if our database is compromised.
Why is tokenization important?
Credit card tokenization protects your credit card number and security code from being stolen by criminals. It also helps reduce the chances of a data breach, as tokens cannot be used to access your actual credit card number.
Tokenization makes online payments more secure for both merchants and customers, and is one of the best ways to prevent fraud and identity theft. With this technology in place, you can rest assured that your credit card information is safe and protected.
What are the benefits of tokenization for merchants?
Tokenization provides a number of benefits for merchants, including:
- Reduced risk of data breach and exposure of credit card data
- Reduced PCI compliance costs
- Reduced chargeback rates and risk of fraud
- Reduced cost per transaction
- Better customer experience through fast transactions and no forced account creation or pre-auth requirements.
Tokenization also supports other payment authentication methods such as: 3D Secure (commonly known as Verified by Visa and Mastercard SecureCode), Apple Pay, Android Pay and others.
What are the benefits of tokenization for customers?
The benefits of tokenization for customers include:
- Increased security of personal credit card information
- Reduced risk of data breach and exposure of credit card data
- Fast, easy and secure checkouts
- No forced account creation or pre-auth
- Fast, easy refunds and returns with tokenized orders.
Does the technology require my customers to create an account?
Tokenization can be implemented without requiring your customers to create an account. This is important for merchants who already implement checkouts that do not require registration, or who want to offer a quick and easy checkout experience with no account creation required.
What other payment authentication methods are supported?
Tokenization supports a variety of payment authentication methods, including 3D Secure (Verified by Visa, etc.), Apple Pay, Android Pay and others. This allows you to offer a wide range of payment options to your customers, while also maintaining your security efforts.
Is there a cost associated with tokenization?
There are no additional costs for merchants who want to utilize tokenized transactions. The payments processor determines the fee structure based on transaction size and volume. Unlike other providers, our payment processing is transparent about its pricing, allowing you to see the exact costs associated with each transaction.
What are the steps to enable tokenization?
The steps to enable tokenization for your business are:
- Sign up for a merchant account with our payment processor.
- Enable tokenization in your account settings.
- Add the tokenization script to your checkout pages.
- Test the tokenized checkout process.
- Start processing payments!