What is Fund-on-File Tokenization?
Tokenization is a process of replacing sensitive data with non-sensitive data. It is used to safeguard your payment information by replacing it with a unique string of numbers.
What are the Benefits?
Paystand uses tokenization to let you vault a customers’ payment information in a secure environment. With a Fund-on-File token, users can securely authorize, charge, and re-use a customers’ payment method without accessing their private information directly. Here are the benefits of Fund-on-File tokenization:
- Increase Security: Tokenization protects your sensitive information and makes it significantly less vulnerable to cyberattacks. Tokenization can also protect your data from those connected to your organization, such as employees, contractors, vendors, and suppliers.
- Improve Compliance: Tokenization means less red tape for your business. If you accept credit or debit cards, you need to be in compliance with the Payment Card Industry Data Security Standard (PCI DSS). Tokenization makes achieving and maintaining compliance with industry regulations significantly easier.
- Lower Risk: Tokenized data is never stored on your system. Instead, it is housed off-site in a cloud-based server to eliminate security risks and liabilities.
How does it work?
Paystand uses tokenization to protect your sensitive data by replacing it with an algorithmically generated sequence called a Fund-on-File token. With a Fund on File token, users can securely authorize, charge, and re-use a customers’ payment method without accessing their private information directly. This makes it near impossible for someone to get at your actual credit card information.
Fund-on-File tokens can be passed through the internet or the various wireless networks needed to process a payment without actual bank or credit card details being exposed.
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