What is Tokenization and How Does it Work?
What is Tokenization?
Tokenization is a technology platform for your merchants to secure credit card information and e-commerce transactions. It uses an algorithm that replaces sensitive data like payment information with unique identification symbols that is called a token, without losing its security. Tokenization was first implemented in 2005 and it is still changing the era of the payment industry by making the payment process safer than ever for merchants and their customers.
How does it work?
How your merchants can benefit from Tokenization:
- Since, tokenization uses random and unique symbols instead of actual customers’ account numbers it is impossible for thieves to steal any valuable information. Protecting both the customer and the merchant.
- Merchants can use tokenization for online transaction, recurring and automated transactions, storing cardholder information.
- Tokenization also works with other sensitive information such as patient records, usernames, passwords, addresses, and more.
- The Card Associations require that any business that processes credit card payments must adhere to the PCI DSS (Payment Card Industry Data Security Standards) and submit annual certification of that compliance. Tokenization makes your merchants’ PCI Compliant because they are not storing any financial information. Making your merchants’ life a little easier with staying PCI Compliant.
- Tokenization is cost-effective since it’s PCI Compliant, your merchant doesn’t need to invest in any further payment information protection.
Help your merchants stay PCI Compliant today! SignaPay offers cost-effective, PCI Compliant Solutions for your merchants, email SignaPay at support@signapay.com or call 1-800-944-1399.
SignaPay founded in 2007, located in Irving, Texas, offers a complete menu of payment solutions for merchants including the service fee program, PayLo, credit and debit card processing, gateway integration, fraud prevention, customer loyalty, analytics software as well as equipment including mobile and point of sale systems. SignaPay is dedicated to their partners and merchants and continually seeks ways to build relationships and grow businesses with streamlined solutions.
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