www.adyen.com Many businesses are working towards making the checkout stage of the shopper journey as seamless as possible through enabling options such as one-click payments. However, to do this, payment data – particularly the PAN (Primary Account Number) – needs to be stored so it can be accessed for future transactions without the shopper having to re-enter card information. And this presents a challenge: How to store this sensitive data in a secure way? The answer to this lies in tokenization, a major industry technology that is shaping the way merchants accept payments and use payment data across online and in-store. How tokenization technology works Tokenization is a process of replacing sensitive data with non-sensitive data. In the payments industry, it is used to safeguard a card’s PAN by replacing it with a unique string of numbers. The payment token itself is the unique string of numbers – a secure identifier generated from a PAN. Payment tokens are automatically issued in real time and used online in predefined domains and/or payment environments. Examples include: only e-commerce, only for a specific merchant(s) and so on. Tokenization Payment technology guide Therefore, tokenized payments are payments in which the PAN is substituted by a token while performing a payment transaction. With tokenized payments, the PAN is not transmitted during the transaction, making the payment more secure. This is the key strength of tokenization as a security measure. Since the PAN is never compromised, there is very little possibility that the token can be used for fraudulent activity – even if a data breach occurs and payment tokens are accessed.
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VID-897 Folder - Tokenization V3c13f82fe-e06d... · The tokenization payment ow Adyen’s tokenization service securely stores customer card data and generates a token that can be
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www.adyen.com
Many businesses are working towards making the checkout stage of the shopper journey as seamless as possible through
enabling options such as one-click payments. However, to do this, payment data – particularly the PAN (Primary Account
Number) – needs to be stored so it can be accessed for future transactions without the shopper having to re-enter card
information. And this presents a challenge: How to store this sensitive data in a secure way?
The answer to this lies in tokenization, a major industry technology that is shaping the way merchants accept payments and use
payment data across online and in-store.
How tokenization technology works
Tokenization is a process of replacing sensitive data with
non-sensitive data. In the payments industry, it is used to
safeguard a card’s PAN by replacing it with a unique string of
numbers.
The payment token itself is the unique string of numbers – a
secure identifier generated from a PAN. Payment tokens are
automatically issued in real time and used online in predefined