Credit card vaulting is a payment processing strategy that allows merchants to store their customers’ payment credentials offsite in a secure, PCI-compliant environment. Instead of keeping sensitive credit card data on their own servers (where it remains more vulnerable to data breaches and requires complex internal security controls), merchants can instead use a third-party token vault company to manage secure storage. This approach gives them access to reusable tokens for future transactions, but relieves the burden of directly maintaining cardholder data on their own.
How Does Vaulting Work?
On a customer’s first transaction with a merchant – whether that’s at an EMV terminal at a retail counter, an embedded iFrame on an ecommerce website, or another method – the card data is passed directly to a Service Provider, bypassing the merchant’s own system. This is the primary benefit of credit card vaulting: the merchant’s environment doesn’t store, process, or transmit credit card information, so their PCI scope (the number of systems they have to report on each year in their SAQ) is drastically reduced.
Once the data reaches the credit card vault provider, it’s held in their secure card storage system. Their solution then returns a remote token (a randomized replacement for the real card number) which the merchant can then store and reference for future transactions.
Benefits of Credit Card Vaulting
Enhanced Cardholder Data Security
Because the “real” credit card data never touches the merchant’s system, their risk of compromise is significantly lower. This not only enhances their overall security posture but also gives customers peace of mind that their information is being handled responsibly. However, the central repository (i.e., the vault itself) becomes a high-value target for hackers, so choosing a token vault company whose security measures have been audited by a PCI-certified QSA is essential.
Reduced PCI Compliance Scope
When using a qualified third-party credit card tokenization service provider, a merchant may be able to remove part – if not all – of their own infrastructure from their PCI scope. (Note that this depends on how the solution is designed and implemented; a PCI QSA is the final authority on what any particular strategy means for a merchant’s compliance obligations.)
Less Risk and Liability
With credit card storage software handled by a third party, merchants face a lower risk of unauthorized access or exposure. That means a lower risk of financial penalties, reputational damage, or operational disruptions in the event of a breach.
Ability to Keep Cards on File for Customers
A major convenience of credit card vaulting is the ability to keep credit card details on file for future transactions. A vaulting/tokenization solution makes recurring billing much more efficient. A merchant’s sales team can charge a vaulted card without entering all the details one number at a time, speeding up transactions and reducing friction for customers.
How Does Curbstone’s Credit Card Vault Work?
Curbstone’s secure card storage solution makes it easy for businesses to keep credit card details on file – without taking on the security and compliance headaches on their own.
Here’s how it works:
- The first time a customer makes a payment, their card data is sent securely to the authorization network via Curbstone’s PCI-compliant infrastructure.
- After that transaction is authorized, the merchant receives a token back from Curbstone’s credit card vault.
- That token can be stored and used to charge a vaulted card at any point in the future, without manually re-entering the card information.
Merchants still need to complete an annual PCI SAQ, but because they don’t store cardholder data, most of their environment is out of scope. It’s a reliable way to reduce complexity without sacrificing control.
Better still, Curbstone’s vault is fully integrated into each merchant’s existing systems. For example, if it’s standard operating practice to begin an order in an ERP, the sales rep can view the customer’s vaulted cards on file and select which charge to use after confirming details like price and quantity. There’s no need for a third-party application.
Discover Secure Credit Card Vaulting
Curbstone specializes in digital wallet integration, credit card vaulting, and all the complex details of modern credit card storage. We stay on top of every PCI update and optimize our tokenization systems for security and efficiency to make sure your business stays compliant.
Whether you’re a large enterprise or a growing mid-size company, we’ll take the heavy lifting off your plate so you can focus on running your business—not on navigating PCI compliance credit card storage.
Want to learn more? Contact us today.
