The security of electronic transactions continues to be a concern for leading players in the payments industry. While companies believe in the need to secure online transactions, they have yet to fully understand the advantages and disadvantages of various security systems.
A new report from payment technology provider Creditcall identified the pros and cons of three popular payment information security services: P2PE, tokenization, and EMV. The authors of the study note that all of these data protection methods play a role in improving transactions. However, only in combination, the three protection technologies will be able to effectively combat payment fraud.
P2PE
Today, many hackers have focused on payment terminals. They create sophisticated programs that allow them to intercept payment information that is transmitted from a POS terminal to a computer.
The P2PE encryption service allows you to encrypt payment information inside the terminal and then transfer it over the network in a secure manner.
Problem
P2PE encryption systems are expensive. A device that manages encoded information can cost up to $ 100,000.
It may take years before the outlet can independently establish such a system. It is easier for small businesses to find a way out of the situation by outsourcing the service of their terminals.
Earlier it was reported about the main trends in the protection of POS terminals.
EMV
The vulnerability of magnetic stripe cards has forced international payment systems to create a new standard for payment instruments. Microchip cards enable dynamic code generation for every transaction and contactless payments.
Problem
In some countries, technology has hardly developed (including the United States). This complicates the widespread adoption of both microchip cards and payment terminals that are ready to process contactless payments.
This can take almost two years. It is necessary to certify payment terminals, new cards with microchips, establish a POS terminal management system and introduce a P2PE system that will ensure the secure processing of payment information.
Earlier it was reported that today only 32% of world payments comply with the EMV standard.
Tokenization
The best way to protect your payment information is to replace it with a cipher when you pass your card through a POS terminal. The number of the payment instrument is replaced with a set of random characters and loses its meaning for criminals.
Problem
Tokenization can protect credit card information as it travels across the network. However, the service cannot ensure data security in the infected payment terminal. Cases were recorded when hackers installed malware on the terminal and the program was able to intercept payment data before turning into a cipher.
A new report from payment technology provider Creditcall identified the pros and cons of three popular payment information security services: P2PE, tokenization, and EMV. The authors of the study note that all of these data protection methods play a role in improving transactions. However, only in combination, the three protection technologies will be able to effectively combat payment fraud.
P2PE
Today, many hackers have focused on payment terminals. They create sophisticated programs that allow them to intercept payment information that is transmitted from a POS terminal to a computer.
The P2PE encryption service allows you to encrypt payment information inside the terminal and then transfer it over the network in a secure manner.
Problem
P2PE encryption systems are expensive. A device that manages encoded information can cost up to $ 100,000.
It may take years before the outlet can independently establish such a system. It is easier for small businesses to find a way out of the situation by outsourcing the service of their terminals.
Earlier it was reported about the main trends in the protection of POS terminals.
EMV
The vulnerability of magnetic stripe cards has forced international payment systems to create a new standard for payment instruments. Microchip cards enable dynamic code generation for every transaction and contactless payments.
Problem
In some countries, technology has hardly developed (including the United States). This complicates the widespread adoption of both microchip cards and payment terminals that are ready to process contactless payments.
This can take almost two years. It is necessary to certify payment terminals, new cards with microchips, establish a POS terminal management system and introduce a P2PE system that will ensure the secure processing of payment information.
Earlier it was reported that today only 32% of world payments comply with the EMV standard.
Tokenization
The best way to protect your payment information is to replace it with a cipher when you pass your card through a POS terminal. The number of the payment instrument is replaced with a set of random characters and loses its meaning for criminals.
Problem
Tokenization can protect credit card information as it travels across the network. However, the service cannot ensure data security in the infected payment terminal. Cases were recorded when hackers installed malware on the terminal and the program was able to intercept payment data before turning into a cipher.
