Many payment processing professionals have been debating the effectiveness and ROI of new security technology such as tokenization and encryption, yet one solution that seems to hold particular promise is Software-as-a-Service-based tokenization, said one expert.
Larry Wine, a payment processing security expert, wrote in an article for Computerworld that SaaS-based tokenization holds a good deal of promise for merchants looking to improve their PCI compliance and overall security. "By eliminating the storage of cardholder data, merchants realize a multitude of financial, operational and security advantages," he wrote. "A tokenization solution requires minimal up-front capital expenditure, if any. And it saves on the back end, too, by preventing costly breaches. If thieves know you don't have any valuable data they have no reason to break into your systems."
Wine also added that even if a hacker did manage to gain access to the data, the breach would be "extremely limited" because of the tokenization.
The PCI Security Standards Council is currently in the process of reviewing security technologies such as tokenization and encryption, evaluating the extent to which they will be included in the next version of the PCI DSS due out in October.