How Secure Merchant Account Services Grow Business
More
and more small businesses accept credit card transactions
today, as the world of banking and retail purchases are shifting to a digital
standard. From restaurants to mom and pop antique shops, having a quality merchant services account increases sales through
efficient credit card processing and increased customer satisfaction. Aside
from the obvious benefits, secure credit transactions are vital in keeping
small businesses and their customers’ sensitive information safe from
fraudulent activity. Security plays a vital role in all merchant accounts,
utilizing encryption and tokenization to minimized chances for data hacking.
Encryption works to scramble information
and decoding is only possible when someone understands the algorithm. This
minimizes chances for interception and typically encrypts data from the entry point
to the processing point. By using this methodology, credit card data is
encrypted at the browser level and decoded when the payload reaches the
database or application (Source: technewsworld.com). While encryption sends
protected information to a specific destination, tokenization does not store
any sensitive credit card data. This serves as a simplified security
technology, as the need for storing and managing encryption keys is nonexistent.
Tokenization, a much younger technology, pinpoints sensitive information such
as Social Security numbers and credit card data and packages them as tokens.
Each token is replaces data with an abstract set of irrelevant numbers until
the token reaches its final destination. Once the endpoint is reached, the actual
numbers contained in the sensitive data replaces the token.
Credit cards accepted at small businesses’ brick and mortar or online stores
undergo this coding metamorphosis for maximized security. Fraudulent activity
is greatly reduced when one or both of these technologies are used in conjunction
as a hybrid solution. With 66% of all POS purchases occurring via credit cards, acceptance in small businesses throughout
the U.S. is likely to rise. Furthermore, statistics are showing cash sales have dropped nationwide, suggesting our economy is
headed for a more digital, more secure transactional standard.
