As digital transformation continues to advance how we do business every day, financial technology is at the forefront of its disruption. The online payment space offers many benefits for handling fast-growing data — such as increased operational efficiency, lowered costs, and improved decision-making. Equally important, however, is ensuring that security features, such as payment tokenization, and protocols are modernized to protect customer transactions from data breaches and vulnerabilities.
Automatic Clearing House (ACH) security is continually improving with the help of digital technology. Traditionally, businesses have relied on end-to-end encryption — the act of encoding sensitive information in transit using “keys” — to secure customer details during payment transactions.
While encryption remains invaluable in protecting customer data, breaches are still on the rise. With ACH payments valued at nearly $77 trillion and growing 5.6% YoY, incorporating tokenization into your payment solution as an added layer of security can serve as a proactive measure to help safeguard a growing volume of transaction data from breaches and other external threats.
What is payment tokenization?
Payment tokenization is a highly effective method of data security that can protect payment data during a transaction.
When payments are tokenized, sensitive financial details, such as bank account numbers, are replaced with a string of unique, randomly-generated numbers, or “tokens.” These tokens are stored and used instead of the bank account numbers to process transactions tied to their respective customer in your database.
A major advantage of tokenization is that tokens can transmit the necessary data that a bank or processor requires to facilitate a transaction, while never storing a consumer’s sensitive banking data on a merchant’s server. In the event of a data breach or other external threat, banking data remains unseen and tokens are rendered useless to hackers. This greatly secures merchant and consumer privacy as a result.
Tokenization as an ACH payment solution
When using ACH processing, merchants can take advantage of Actum’s tokenization feature to transact more securely and efficiently. By offering payment privacy and data protection, Actum’s ACH solution helps you safeguard consumer data, as well as your reputation. By offering fully-integrated tokenization solutions as part of our platform, Actum:
- Allows merchants to securely store payment information and to simplify recurring or other future transactions
- Allows merchants to manage encryption keys separately from tokens or any other encrypted data to provide added levels of security
- Eliminates the need for third-party tokenization services, which can increase transaction costs and add time to market
- Enables new payment solutions via our integrated ACH API
With the flexibility of Actum’s ACH solution, it’s never been easier to incorporate tokenization into your payment technology and keep your data safe. To learn more about how Actum’s tokenization solutions can support the needs of your business, we invite you to Contact Us.