Payment tokenization is not reversible. Unlike encryption, which can be reversed if you have the encryption key, tokenization converts data into a meaningless sequence of randomized characters that have no relation to the original values. Once sensitive data is tokenized, the original data is not stored or retrievable from the token – even by the merchants that originally generated the tokens.
Because tokens are undecipherable, they dramatically reduce the possibility of your data falling into the wrong hands. Even if a hacker were to breach your system, the payment tokens that reside there would be of no value for their use. Meanwhile, the third-party tokenization provider takes on the burden of securely storing and protecting the original data in their own vault.
A Deeper Look at the Different Types of Tokenization
Tokens can take many formats. For example:
Non-format-preserving tokens maintain no resemblance to the original format of the data. For example, your Social Security Number has nine numbers, but a tokenized version is a mix of six random characters.
Format-preservingtokens keep the same format but generate random values.
Partial-replacementtokens change some numbers to different numbers, symbols, or alphabetic characters but keep the same number of digits.
Generally speaking, credit card tokens maintain the same format as the original card number.
How Irreversible Tokenization Supports a Strong Security Program
Tokenization is so secure that it is one of the Payment Card Industry’s approved methods of protecting payment data. Merchants don’t need to store or transmit sensitive data when they process transactions, significantly reducing the risk of data breaches and the complexity of their compliance requirements. However, they retain what they need for day-to-day business operations, allowing them to streamline transaction processing for their employees and their customers.
If you’re looking for ways to make payment processing more secure, Curbstone’s remote payment tokenization is a great place to start. The unique, non-reversible tokens let you run recurring charges and issue refunds without storing full credit card data on your system. When paired with our other PCI-compliant payment processing solutions, it can even help you reduce the scope of your annual PCI compliance audit. For more information, contact us today.
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