What is Payment Tokenization and Its Benefits? Explained

Tokenization: An endeavor to resolve the payment security issues

The security of payments matters a lot for an online business. when it comes to digital payment, you can’t compromise with the security of client’s data. Customers want to make it sure that their data is secure and stealing their debit or credit card details is next to impossible. With tokenization, Bhartipay gives that faith. Moreover, you can also build the customer’s trust in your brand. Also, with tokenization accepting payment is easy and secure. The purpose of this article is to provide you information about tokenization and its benefits.

PCI DSS in brief

Merchants must meet the needs of PCI DSS compliance. PCI DSS is a set of security standards that minimizes the risk of debit and credit card data theft. Also, it maintains the reputation of a business. Along with this, it provides peace of mind to you and your clients.

payment tokenization processTokenization is a technique used to protect the cardholder’s payment data from prying eyes. In addition, merchants should never store payment card data unless required to do so. Going through the reports about the data security breaches, we can say that the future of tokenization looks bright ahead.

 What is Tokenization?

Tokenization is a highly secure method of replacing 16-digit credit card number with a unique code. This unique code is nothing but a token. In tokenization, there is a random generation of the token. Moreover, it reduces the chances of data breaches. Before the introduction of tokenization technique, Encryption was widely used to protect customer’s data. Unlike encryption, Tokenization does not use a mathematical rule for token creation.

Tokenization Process

1- The customer enters his or her credit card information.

2- Tokenization system receives the credit card number.

3- The tokenization system generates a token.

4- The tokenization set-up sends the randomly generated token number to your site.

5- Finally, you can make payments with a token. Now, the cardholder’s data is safe with tokenization.

payment tokenization process

Payment Tokenization Benefits

Tokenization is a payment security technology that won’t allow thieves and hackers to steal customer’s credit card data. Our secure payment gateway can decipher the token code. There are numerous payment tokenization benefits some of the major benefits are-

  • Reduces the risk of fraud– Every online payment is associated with the risk of fraud. Controlling fraud is very crucial to build the customer’s trust in a business. Therefore, it is very important to work in the direction of providing secure payments and thereby reducing the risk of fraud. Moreover, merchants can reap the benefit of security.
  • PCI scope Reduction-Tokenization techniques are getting better day by day. Nowadays merchants can easily become PCI compliant.  Use token data instead of sensitive cardholder data. By doing this, you can easily put an end to major threats. Reducing PCI scope is not a big deal. The boom of tokenization is probably due to the fact that you are not really saving data. This is the best way to simplify PCI scope.
Implementing this young whippersnapper is cheaper
  •  Cost-effective technique–  Tokenization is a crucial part of our comprehensive suite of offerings. Implementing tokenization is cheaper as compared to encryption. Due to reduced PCI scope, compliance is a cheap and easy thing. In comparison to encryption, Tokenization requires less power to compute. Recurring billing helps in saving administrative costs.
  • lessens the data breach risk–  Our payment gateway services lessen the risk related to a data breach. Furthermore, we can say that tokenization is a curse for hackers and cyber thieves.
  • Recurring payment transactions- We at Bhartipay manages and tokenizes all recurring payment transactions.

Tokenization is here to stay and it is a must-have payment gateway service for merchants. If you are a business person then you should have a payment gateway provider. If you don’t know how to choose a payment gateway, we will help you.

P.S – You can read our article that may interest you on how to choose a payment gateway.

Our company is also providing White label services which very few payment gateway companies are providing in India.

Summary
Payment tokenization
User Rating
5 based on 2 votes
Service Type
Payment tokenization
Provider Name
Bhartipay- Payment Gateway Services,
A100 sec4 noida,Noida,up-201301,
Telephone No.01204292590
Area
A100 wing A, sector 4, Noida 201301 (UP)
Description
Bhartipay is a complete online payment solution which makes transactions smooth and simple for any kind of business.