What's Next After the EMV Migration? Tokenization

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Scale Across Devices and Merchants

Tokens are a powerful security tool because they are able to scale across devices and merchants. They cannot be used outside of the context of the transaction, and payment card data doesn't have to be stored on a company's network. Mobile payment options, like Apple Pay, benefit especially from this as the use of tokens adds EMV security to transactions performed with virtual cards, such as via an iPhone. Virtual card payment not only makes mobile payments more convenient, but also more secure with the potential to enable tokenized commerce across the entire retail economy.

As one of the last countries in the world, the U.S. will migrate to an EMV-based payments infrastructure on October 1, 2015. By then, Visa and MasterCard alone will have issued more than 550 million chip and pin cards. While migration to an EMV-based payments infrastructure is a significant step in securing payment data, it won't eradicate all risks.

Typically, payment data flows from the customer in the swipe of the payment card, via the merchant's point-of-sale terminal, to the acquirer and then onward to the card association for payment validation. When an EMV chip is embedded in a card, it helps ensure that the card being used is real and that it in fact belongs to the person using it, thereby drastically reducing the risk of stolen or counterfeit cards in comparison to traditional magnetic stripe cards.

These chip and pin cards are a vast improvement for preventing counterfeit use in comparison to traditional magnetic stripe cards. However, security controls still need to be put in place to protect cardholders' confidential information on payment cards not just at the moment the card is swiped or dipped, but all the way through the transaction process. To secure data in-transit, merchants are turning to tokenization.

In this slideshow, Malte Pollman, CEO of Utimaco, a leading manufacturer of hardware-based security solutions, looks at how merchants will need to take extra steps toward encryption and tokenization if they want to truly secure transactions.


Related Topics : Unisys, Stimulus Package, Security Breaches, Symantec, Electronic Surveillance

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