In today’s digital age, credit card transactions have become the norm. With more and more people relying on digital payments, credit card numbers have become a valuable target for fraudsters. Tokenisation is an effective method of protecting credit card numbers and preventing them from falling into the wrong hands. Tokenisation is the process of replacing sensitive data, such as credit card numbers, with a unique identifier called a token. This token can then be used in place of the actual credit card number in all transactions. There are two types of tokenisation: reversible and irreversible.
Reversible tokenisation, also known as dynamic tokenisation, is a process where the original credit card number can be recovered from the token. In this process, a token generator creates a unique, one-time token for each transaction. This token is then used in place of the actual credit card number, and the token goes through the authorisation process. Once the transaction is complete, the token is removed from the system. When the customer initiates another transaction, a new token is created, and the process repeats. Reversible tokenisation is useful for merchants who may need to refund a transaction or rerun a transaction if it fails. Since the original credit card number is stored in the system, refunds and reruns become possible.
Irreversible tokenisation, on the other hand, is a process where the original credit card number cannot be recovered from the token. In this process, the credit card number is replaced with a token that is permanently linked to the account. This token is stored in a secure database, which can be accessed only by authorised personnel. When a transaction is initiated, the token is used in place of the credit card number. Irreversible tokenisation is useful for merchants who need to maintain PCI compliance or handle large volumes of transactions. Since the original credit card number cannot be recovered, it becomes impossible for fraudsters to access the number, making it an effective method for protecting credit card information.
When it comes to choosing between reversible and irreversible tokenisation, the decision depends on the merchant’s individual needs. Reversible tokenisation is useful for merchants who may need to refund or rerun transactions, while irreversible tokenisation is useful for merchants who need to maintain PCI compliance or handle large volumes of transactions. Both methods are effective in protecting credit card numbers, but they differ in their ability to recover the original credit card number.
In conclusion, tokenisation is an effective method for protecting credit card numbers and preventing them from falling into wrong hands.
