Pci

Credit card tokenization is gaining traction as a solution for merchants navigating strict payment card industry rules on data storage. This process replaces actual credit card numbers with secure tokens, making stolen data useless to hackers and simplifying storage for businesses. Tokenization offers benefits like easier PCI compliance, simplified recurring billing, and cost savings, and is often a free service from payment providers.

Credit card tokenization is gaining traction as a security measure, converting sensitive credit card numbers into non-sensitive tokens to protect cardholder data. This process allows merchants to securely store tokens for re-billing purposes without exposing actual credit card numbers, reducing PCI compliance burdens. Merchants should inquire with their service providers about tokenization services to enhance data security and streamline payment processes.

An American Banker article discusses the Payment Card Industry's July 1st compliance deadline, highlighting concerns about retailer readiness. Payments consultant Paul Martaus estimates that around 20% of retailers will likely remain non-compliant by the deadline. This non-compliance is partly due to many retailers using outdated terminals incapable of supporting PCI-compliant applications.

PCI, or Payment Card Industry Security Standards Council, was formed by major credit card companies to protect cardholder data through the Payment Card Industry Data Security Standard. This standard mandates annual compliance reviews for organizations processing credit card transactions, with the type of review depending on transaction volume. Merchants can reduce their PCI compliance burden by accepting eChecks, using tokenization, or utilizing their provider's secure web payment page.

Tokenized payments utilize cloud computing to securely store customer payment data, replacing sensitive credit card numbers with tokens for transactions. This process involves sending customer information to a provider who returns a token, which is then used for future payments instead of the actual card number. Tokenization offers advantages like enhanced data security, simplified PCI compliance, reduced costs, and easier rebilling, and is offered by providers like Braintree, Cybersource, USAePay, and Stripe.