Keeping your customer’s identity secure may seem like second nature to your company, but are you doing everything possible to keep them safe? With hackers getting smarter and more technical every day, keeping customer information private becomes a frequent worry since lawsuits can arise in the event of a data breach. There were 783 reported data breaches in 2014, and it’s estimated that each “compromised record” costs retailers an average loss of $201. But what’s more, it also cost them the confidence and trust of customers and would-be customers.
What is Tokenization?
Token technology takes a credit card number and replaces the 16 digit card number with a custom token. The token reflects the format of the original number but it’s non-descriptive so hackers can’t see the number. Tokenization requires the use of a gateway, which is where the sensitive data is stored. Once all necessary information has been received and the payment has been applied, all that is stored on a business’ database is a token and a separate masked credit card number that contains only four digits of the card. This means the 16 digital card number is not stored on the business’ network, reducing liability immensely. Read more about tokenization here.
Why Encryption Doesn’t Work
Encryption has been around for years and used to be the best way to store sensitive information. But with hackers being so sophisticated now, they can solve its mathematical equation and retrieve the credit card information. This is not only bad for your customers, but for your business as well because if fraud were to happen, your business is responsible.
How it Effects Your Business
When you go the extra mile to protect your customers’ identity, it shows. When a customer feels loyal to a business, they become a return purchaser even if another place has the same products for less. They also spread the word about your business to friends and family, which is the best marketing you can get.
Take the stress and liability out of your business when you implement Credit Card Extension (CCE), an ePayment solution from k-eCommerce with integration to Microsoft Dynamics GP. CCE is a PA-DSS Certified solution that works with multiple gateways that use token technology. Contact our team to learn more about tokenization and CCE.