Each year, fraud costs the credit card industry billions of dollars in lost revenue. On an annual basis, retail data breaches expose tens of millions of credit card holders to identify theft and unlawful transactions on their credit.
One method that is effective for preventing this type of criminal activity is point-to-point encryption (P2PE). It is designed to encrypt a customer’s credit card information from the time it’s used at a merchant’s location. It is then not decrypted until it is away from the merchant’s processing environment.
Currently every credit card has a magnetic stripe on the back of it. This magnetic stripe contains the cardholder’s sensitive information such as name, security codes as well as account number and more. This information is what is desired by hackers. They will use various methods to get it including malicious software, This software is designed to obtain sensitive data as the credit card is used within a merchant’s computer network after a transaction.
Point-to-Point Encryption (P2PE)
This credit card encryption method is designed to protect the cardholder’s data from the moment it is swiped or key entered into a merchant’s system. This protection continues during the entire confirmation process. It involves the using of the most advanced encryption technology. These devices work so well even the merchant never has any contact with the unsecured credit card data.
Chip and Pin Technology (EMV)
Cardholder information, plus lots of other information, is stored in a chip which is embedded on the front of the card. EMV chip cards contain embedded microprocessors that provide robust transaction security features and other application capabilities not possible with current magnetic stripe cards. Plus, EMV chip technology helps to reduce card fraud in a card-present environment and enables safer and smarter transaction solutions.
There may be situations where a merchant needs certain details about a payment transaction left in their systems to help a customer. This could be a result of a dispute, targeted marketing efforts and more. Tokenization provides randomly created values when a merchant accesses a cardholder’s data. This does away with the need for merchants to store or secure the actual data of a cardholder.