What is card tokenisation, and how does it secure transactions?

As an online shopper or business owner, you probably worry about the security of card details during transactions. Today, ensuring secure transactions is more important than ever. With the rise in online shopping and electronic transactions, the chances of fraud have also increased.

According to Visa, using tokens has reduced fraud rates by 28% across 8,600 issuers and 800,000 merchants. This highlights the need for secure transaction methods like card tokenisation. But what is card tokenisation, and how does it secure transactions? Let's explore this modern solution and understand what tokenisation payment and tokenisation in banking mean for you.

If you are pondering whether to adopt core banking services, this guide will provide you with details regarding its benefits.

What is card tokenisation?

Card tokenisation is a way to keep your card information safe when you shop online. It replaces your sensitive card details with a unique identifier, known as a token. This token is used during the transaction instead of your actual card number. Since tokens are useless if intercepted, they greatly reduce the risk of fraud.

In short, card tokenisation helps businesses and banks protect your data, making online payments much safer. So, next time you hear about what is card tokenisation, know that it's a key tool for keeping your financial information secure.

What is tokenisation in banking and payments?

Are you wondering what is tokenisation in banking? It's a crucial safety measure. tokenisation is a security process used in banking to keep your card information safe.

It swaps out sensitive card details for a unique token that can't be used if stolen. This is how card tokenisation works across different payment systems to secure transactions.

Banks and payment processors use card tokenisations to ensure that your transactions are secure, and your sensitive data stays protected.

Benefits of card tokenisation

Card tokenisation offers several key benefits like these -

• Better security: Replacing sensitive card details with tokens helps reduce the risk of data theft and fraud

• Regulatory compliance: It helps businesses comply with important regulations, such as RBI guidelines. This ensures they meet all necessary legal requirements

• Improved customer experience: Features like saved cards make checkouts faster and more convenient for customers

RBI-compliant card tokenisation solution

The RBI has strict guidelines to protect customer card details. Businesses and payment aggregators are not allowed to store sensitive card information. Businesses can comply with these regulations by replacing card details with a token through card tokenisation. It helps businesses meet RBI guidelines without disrupting operations. It ensures that customer data is protected and that businesses follow the rules.

Implementing card tokenisation for seamless transactions

Let's look at how businesses implement card tokenisation for streamlined transactions:

• Choose a trusted tokenisation provider to ensure smooth integration

• Set up the system to replace sensitive card details with tokens during transactions

• Ensure that all transactions use these tokens instead of actual card numbers

Working with a good provider is crucial for seamless integration and strong security. They will help you implement card tokenisation efficiently.

How Pine Labs facilitates card tokenisation

Implementing card tokenisation is straightforward when working with a reliable provider. Pine Labs offers a robust card tokenisation solution for secure and seamless transactions. Here's how we do it:

• Saved cards feature: This allows repeat customers to save their card details for faster checkouts, improving the shopping experience

• Seamless checkout experience: Pine Labs uses tokens to ensure quick and secure transactions without exposing sensitive card information

• Compliance with RBI guidelines: Pine Labs' solution fully complies with RBI regulations, helping businesses effortlessly meet legal requirements

Now that we know how Pine Labs facilitates card tokenisation, let's have a look at how the process is carried out:

1. Customers initiate a purchase using the saved card feature

2. Pine Labs' Plural Tokeniser encrypts the card details into a token

3. The business collects the token and Token Authentication Verification Value (TAVV)

4. The acquiring bank processes the token

5. The card network converts the token to the PAN and sends it to the issuing bank

6. The issuing bank approves the transaction and shares a response

Safe transactions with Pine Labs' card tokenisation

Securing your digital transactions is crucial. Pine Labs' Plural Tokeniser provides top-notch protection for your personal details, ensuring safe transactions. Don't leave your security to chance. Secure your business today with Pine Labs' advanced card tokenisation solutions.