With cyberattacks becoming more sophisticated daily, companies are starting to recognize the importance of implementing proper data security measures. One technique business owners have turned to is a data security measure called tokenization.
Tokenization is an advanced security measure increasingly adopted by millions of companies across the globe. However, trying to choose the right tokenization solution can be a daunting task. Not only is the concept of tokenization hard to understand in and of itself, but hundreds of options are available to choose from, all of which offer different models. Rest assured, PCI Booking is here to help you navigate through all the jargon.
Want to learn more about how to choose the right tokenization solution? Read this blog!
This guide will help you to discover the right tokenization solution for your business, breaking down everything you need to know about tokenization, such as why tokenization is important, what industries need it, and how you can make sure to choose the right tokenization service.
What Is Tokenization?
Tokenization is an increasingly popular data protection control method designed to secure an organization’s sensitive data. To put it simply, tokenization is the process of swapping sensitive information for placeholder “tokens” with no meaning or actual value. Tokenization plugs in dummy figures into your existing processes by replicating elements of the original data like format or length.
Many business owners confuse tokenization for encryption—be sure not to make this mistake!
Tokenization is a much more secure method when compared to standard data encryption and eliminates the chance of your data being compromised when in its token form. An easy way to understand the difference between tokenization and encryption is like this:
Encryption is like the mask of a Scooby-Doo villain. It’s placed over your data, but what’s underneath the guise is ultimately the same. When it’s caught—it’s caught. Comparatively, tokenization is like a body double. Even if the Scooby gang captures their masked villain, it won’t matter—it’s a decoy. In this scenario, your data is safe.
Why Is Card Tokenization Important?
While tokenization is an increasingly popular solution for protecting sensitive data, it’s most often used to protect credit card information. Card tokenization can help your business:
Criminals frequently target businesses that accept credit and debit cards because of the wide range of opportunities available when you have access to someone’s card information. Increased cybercriminal competence has led to the cost of data breaches dramatically growing year-over-year, with the average cost of a data breach being $4.35 million.
Tokenization is one of the most effective security techniques for minimizing your organization’s risk and preventing costly breaches.
Keep Your Company Secure
Clients are more likely to work with an organization if they’re confident in its cybersecurity practices. Take the perspective of a potential client—would you trust your financial information or sensitive credit card details to a company with a history of poor security practices?
Implementing tokenization solutions into your organization’s existing infrastructure can boost your current clients’ satisfaction with the company and attract new clientele to consider partnering with your business.
Every business that works with cardholder data must comply with the Payment Card Industry Data Security Standards (PCI DSS). Failing to comply with the PCI DSS could have serious consequences for your business, including financial and criminal penalties. Depending on the specific tokenization solution you employ, tokenization can take compliance out of your hands by moving all sensitive card information out of your interall systems.
How to Choose the Right Tokenization Solution
Now that we know more about tokenization and how it works, let’s break down the information you need to decide on your next tokenization service provider.
Questions to Ask Before Choosing a Tokenization Solution
Choosing the right tokenization software solution for your company entirely depends on your organization’s specific needs, which is why you must begin the process of choosing your next tokenization solution by asking yourself key questions about your business’s needs:
The first question you need to answer is if the tokenization service you’re considering even works with your data type. Make sure that their tokenization software seamlessly integrates into your existing processes without impairing operational functionality.
After learning that a tokenization software will work for your business, start examining its terms and pricing. Do their payment terms fit into your organization’s processes? How would these expenditures impact your business’s bottom line? Answer these questions to determine if a relationship is even possible.
Is the software integration process laborious and time-consuming? How will integration affect your overall business processes? Ideally, iterating a tokenization solution into an existing company should be an intuitive, unobtrusive process. Make sure that the provider gets you the tokenization solution you need without disrupting your operation.
One of the most popular reasons that businesses choose tokenization is because of its security benefits. A potential partner should have rigorous security standards and cutting-edge technology that keeps your cybersecurity locked down. Ideally, a company will take the majority data outside of your organization entirely, making PCI compliance simple.
You want to make sure that you work with an organization experienced with your type of business. If they’ve done a great job helping businesses similar to yours in the past, they’ll be able to help you out, too.
What to Look for When Choosing a Tokenization Service Provider
Now that we understand what questions you need to ask before choosing a tokenization service partner, let’s break down what you need to look for
A tokenization solution is only as good as the provider facilitating it. Make sure that you’re working with a provider with a wealth of knowledge developing and enacting tokenization solutions for your type of business.
Ultimately, tokenization is all about security. Your tokenization provider should constantly be tracking changes to the space to see how the technological environment is developing. Cyberthreats evolve every day—your defenses need to keep up.
In order to stay agile, a tokenization provider must adjust their software platform and technology. Make sure you get a partner capable of changing on the fly by choosing a provider with sufficient technological expertise. Technological skill gives them the capability to adjust their software and develop new processes for your specific needs.
Get Highly-Secure Tokenization Solutions Today With PCI Booking
PCI Booking has years of experience providing tokenization solutions to a wide range of industries. Our team of software engineers will customize a solution tailored to your business’s specific needs, ensuring that your data stays secure, your business stays compliant, and your customers stay satisfied. Contact us today to find out how we can help you.