All businesses which deal with electronic payments are facing the challenge of PCI auditing procedure. It is going to differ depending on the level of the merchant and the amount of the credit card data stored and transmitted on their own, so merchants are looking for solutions which can help them to reduce their PCI scope. Credit card tokenization is one of the approaches used for this purpose.
Credit card tokenization allows merchants to replace real credit card numbers with tokens. The actual credit card numbers are stored by tokenization service providers consequently it helps businesses to simplify the PCI audit which they will have to undergo.
Taking into account the data which is tokenized, two credit card tokenization approaches can be pointed out: pure tokenization and customer profiling. Under the pure tokenization approach only the customer’s credit card number is tokenized when a transaction is processed. Under the customer profiling approach the whole profile of a customer is maintained and when a transaction is processed, all the data (card expiration date, billing address) which is necessary for the transaction to come through, is taken from that profile.
Two more approaches from the hardware view point can be singled out: tokenization through appliance and tokenization as a service. In the first case a business needs a special credit card tokenization device which is necessarily PCI compliant. In the second case a payment gateway integrates with a credit card tokenization service. And the last approach is mostly used to get out of the PCI scope.
There are a great amount of other important issues connected with credit card tokenization which can be used by your business. You can read the articles devoted to this issue at Paylosophy Portal. Hope you are going to visit this #Paylosophy for more information.