Tokenization – A solution for Security, Convenience and compliance

You have heard about tokenization or tokenization in payments, let me explain what tokenization in payments is “Merchants who accept card details on their payment page, can send the card number and expiration date to some third party (token provider) via a web service (or any other API) and in response merchant will get a token number against the card details, this token number can be used in future to get the actual card number and expiration date from the same token provider” The token number is generated by such algorithms that card details cannot be derived from token number.

At an abstract level tokenization can provide a merchant with

1    1) Increased online sales: Express checkout or one click checkout can be achieved using tokenization. This improves the checkout process dramatically by reducing the checkout time and added security; this also decreases the chances of transaction failure due to invalid card details. These kinds of services also promote the customer to return to merchant page for future requirements.

2    2) More security and reduced PCI DSS scope, as merchant is not storing card details on its system, so will be the reduced PCI DSS scope, and no fear of losing card details in a security breach.

3    3) Use of card details: Many online merchants usually have integration with more than one payment gateway, if tokenization system is independent of these payment gateways then the same card details can be used in any number of payment gateway. This provides the merchant with better flexibility and control.

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Choose the payment gateway which increases your sales

So you are running an online business and you accept online payments from your customers, and you will have to integrate with some payment gateway. This blog is about which payment gateway will better suite you, the conclusion upfront is "Choose the payment gateway which increases your sales/revenue". In other terms your payment gateway should be having

• Highest transaction success rate
  
  
• Advanced sales enhancement features like:
• Facebook payments  
• Payment retry option using click to pay button via email
• Mobile payments
• Payment through QR code
• Support for merchant promotional program
  
  
• CRM with sales analytic – find and target potential customers
  
  
• Express checkout
  
  
• PCI DSS compliant
  
  
• Easy integration API’s with proper documentation and integration kit as per merchant's technological needs
  
  
• Payment gateway payment page having look and feel similar to merchant page, so that customer feels at home and safe
  
  
• Fraud and Risk management system – this feature of payment gateway can help merchants be protected from sophisticated frauds and chargeback

Using the right set of tools and technologies’ supporting your online business is need of the hour. If such a payment gateway increases your sales by 5% then this could be a jackpot.

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