Published On: Wed, Feb 3rd, 2016

How Tokenization And Cipherpay Tech Can Virtually Eliminate Risk

Online fraud costs companies billions of dollars each year and cuts deeply into earnings. In 2014, retailers lost $3.08 for every dollar in fraud they incurred. Security is at at forefront of the retail industry online and new innovative technology is being realized very quickly among banks, stores and payment processors.

Some of this technology is a simple idea, combined with advanced platforms to scale and implement. But many retailers in many segments don’t have risk eliminated totally for 2016. Although that is theoretically impossible, there are technologies that have proven almost zero fraud through new technologies.

Depending on a retailer’s needs, this is done through tokenization and a suite of security products called CipherPay.

Most credit card fraud happens because the card information is static, the same number, card data, and security number. Criminals steal this and use it for purchasing stolen goods. The idea of tokenization takes that ability completely away.

photo/ Public domain pictures via Pixabay

photo/ Public domain pictures via Pixabay

Here’s how it work:

Step 1

Sensitive details like bank details and credit card data are replaced by a token. That token is then sent to cloud systems that store and process this data so that control is never lost of the critical data or credit card information.

Step 2

The payment processor swaps the token for the encrypted credit card numbers. Since that surrogate value cannot be reversed, the data is secure with the delegated parties. This step ensures only approved parties have the data.

Step 3

These tokens can be used for analytical value, reporting, transaction processing or rewards management. This means a merchant can operate risk free with the right type of security products.

Merchants should be looking at processing and transitions as an eco system. If a merchant has PCI scope relief in their Card Data Environment, then risk associated with fraud and chargebacks is lowered. Using the right security products also protects against data breaches, and renders credit card data useless to anyone outside of the processor, merchant and bank.

CipherPay Security Products

This suite of security products works through the entire cycle of processing a payment. Because the SDK or API is integrated at the merchant level, security starts when the user starts filling in data into a form.

Both software and hardware integrated merchants are secure through data encryption and works through the lifecycle of the transaction.

How To Eliminate Risk In These Environments

Encryption security embeds itself on the consumer’s PC and encrypts data as its being entered. The encrypted data then passes through the ordering system directly to the payment processor for decryption. At no point is the decrypted data visible to anyone other than the consumer and the merchant.

Car present security uses 3DES terminals that encrypt data before it enters the point of sale system. After it’s encrypted, it’s then passed to the payment processor. That means the Card Data Environment is removed from the payments flow.

For mobile, security technology is built into the mobile readers connect through the audio jack on a mobile phone. When swiped, the data is encrypted before transmission through the mobile app’s software. The eliminates the mobile app from the payments flow.

By taking these elements out of the payment flow, it virtually eliminates the risk for the merchants of fraud. Working on fraud prevention before it happens has been the consistent track record for lowering risk for online retailers. By taking these elements out of the entire process, risk is virtually eliminated.

Guest Author: Vincent Dexter


On the DISPATCH: Headlines  Local  Opinion

Subscribe to Weekly Newsletter

* indicates required

About the Author

- Outside contributors to the Dispatch are always welcome to offer their unique voices, contradictory opinions or presentation of information not included on the site.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>



The Global Dispatch Facebook page- click here

Movie News Facebook page - click here

Television News Facebook page - click here

Weird News Facebook page - click here