The risks, costs and challenges associated with storing credit card data internally is well documented. Credit card data encryption was cited as the single greatest challenge merchants face when achieving PCI Compliance in a recent Gartner and recent breaches of PCI Compliant companies has demonstrated the residual risk of internal storage. Every merchant that transmits, processes or stores credit card information must be PCI Compliant. Protecting the credit card data is usually cited as the most challenging part of the process. To properly store credit card data according to PCI Standards, merchants have two options: 1) Store the sensitive data internally which can be costly, time intensive and still present ongoing risk or 2) Remotely store credit card data in Braintree's Vault.
Our unique credit card tokenization solutions allow merchants to replace credit card numbers with unique tokens that can then be used for all the same functionality. Tokens are useless to criminals and cannot be used outside of a merchant environment. Tokens can be used with existing applications to minimize process and work flow. The benefits of tokenziation are far reaching including the reduction of PCI Compliance scope and increased security ? as no sensitive data is present in a merchant environment to be stolen, even in the case of a breach. Tokens can be up to 32 alpha numeric characters and are determined by the merchant or randomly generated. Once a token is created, it can be used for recurring billing, subsequent sales, refunds, voids, fraud management and reporting and reconciliation. More than ever, merchants are turning to Braintree, including those who previously achieved PCI compliance internally, for three reasons:
1.Compliance is not easy. Achieving and maintaining internal compliance is more complicated, more costly and more resource intensive than anticipated. 2.Compliance does not equal security. Recent breaches have proven that even companies that spent a significant amount of time and money to achieve compliance internally are getting breached and suffering the financial, business and PR consequences. 3.Compliance today does not equal compliance tomorrow. Achieving and maintaining compliance internally is a constant battle. With new threats always emerging and the PCI standard continually evolving, internal resources will always be required to address these changes.
Benefits of Credit Card Tokenization ?Increased Data Security: No sensitive data is present in a merchant environment to be stolen ?Same Customer Experience: No change to user experience ? No 3rd party hosted page ?Same Data Control: Same functionality and control over credit card data ?Same Acceptance Channels: Including website, phone, mail and instore ?Fewer Constrictions: Operate without the burdensome required controls and procedures ?Ease of Integration: Seamlessly integrated into any IT environment
Credit card data is tokenized directly from the merchant's website using Braintree's Transparent Redirect method. When a payment is accepted, the credit card information is stored in the Vault and a unique ?token? is returned to the merchant. Tokens can be used just like a credit card including future sales, refunds, voids, credits, reporting and reconciliation. There is no change to the user experience. Best of all ? if stolen, a merchant's unique tokens are useless to criminals. Braintree's smart approach to PCI Compliance eliminates credit card data from ever entering a merchant's environment. Using credit card tokenization combined with our Transparent Redirect method, which collects the data directly from the merchant's website, the sensitive data never touches the merchant's server. With our solutions, the scope of PCI Compliance is greatly simplified and achieving and maintaining compliance is faster, more economical and less of a distraction.
When looking for a credit card it is important to understand the various terms related to credit cards. Below are some of the most common terms you will come across when searching for a credit card. By understanding these terms you can better compare credit card offers and determine which is the better offer.
Annual Fee Many banks or card issuers may charge a annual membership fee for their credit cards. The fee may range from $25 to over a $100 depending on the card. There are also many cards out there that no have no annual fee!
Annual Percentage Rate Often referred as the "APR", this shows how much credit will cost you on a yearly basis. The lower the rate the less you will pay on interest charges. There are two types of APR:
1. Variable APR A variable annual percentage rate allows credit card issuers to change your APR based on fluctuations in indexes such as the prime rate.
2. Fixed APR A fixed annual percentage rate is not subject to adjustment based on indexes like the variable rate. But beware that credit card issuers reserve the right to change the your rate at anytime.
Average Daily Balance Method This is the most common method that credit card companies use to calculate your payment. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in the billing cycle.
Billing Cycle The number of days between the previous statement date and the current statement date. The billing cycle is typically between 27 to 33 days long.
Credit Line This is the most you can charge on your account. Under some conditions, your card issuer may increase or decrease your credit line.
Finance Charges The total charge for using a credit card consisting of interest charges, late fees, transaction fees and other charges.
Grace Period Many credit card companies offer a grace period where no interest is charged. The typical grace period is usually between 20 and 30 days. However, if there is no grace period, finance charges will accumulate the moment a purchase is made with the credit card.
Introductory APR Also known as a teaser rate, many credit card companies will offer a low interest rate for an initial period of time to encourage consumers to accept their credit card offer. After the initial period the rate will change to the stated interest rate.
Periodic Rate This is the interest rate described in relation to a particular amount of time. For example, the daily periodic rate is the cost of credit per day.
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