Tokenization is a secure process that replaces sensitive data with non-sensitive data. It can be used to secure sensitive information such as credit card numbers by replacing them with a unique identifier called “a token”. The token is then used in place of the actual credit card number in transactions, reducing the risk of fraud or data breaches.
MYMOID's tokenization flows securely store customers' card data and generates a token (payment method ID) for the organization to use for subsequent purchases. This is illustrated in the diagram above.
How does tokenization work?
It is understood that the user provided their card details in the Payment form. These data have been securely and encryptedly stored under the parameter 'payment_method_id'.
Organization reuses a Payment Method ID
The organization can reuse the Payment ID to process another transaction. (without knowing the actual card data, as it is encrypted under the Payment ID).
When a Organization initiates a new transaction, MYMOID translates the Payment Method ID to Card data and it is sent to the Payment Processor, which processes the transaction.
This way, even if the token is intercepted by a third party, they would not have access to the actual credit card number, making it more difficult to commit fraud.
Benefits to tokenization
👉 Cost savings: With MYMOID's tokenization solution, you can confidently trust that cardholder data storage is being securely managed, leading to a reduction in costs associated with maintaining and monitoring Payment Card Industry (PCI) compliance.
👉 Improved security: With tokenized payment data, even if fraudsters manage to steal it, they won't be able to use the stolen tokens to pay online. Why? Because the tokens can't be linked to your payment information - it's stored safely with the payment partner. By using tokens, the organization avoids sensitive data stored on their servers.
👉 Enhanced Payment Experience: With tokenization, organizations can confidently provide shoppers with the convenience of securely saving their payment information. This ensures that the next time shoppers make a purchase, they won't have to spend time entering their payment data again.
Did this page help you?