Ever heard of the Home Depot fraud of 2014? 56 million shoppers’ credit card numbers were stolen, making it the single largest known credit card theft in history. That’s right—even larger than the Target credit card heist of 40 million credit cards in 2013.
Now imagine if the same thing happened to your dealership. The losses would be tremendous, in terms of both credibility and revenue. Fortunately, credit card data can be protected and you can remove the liability by taking advantage of the latest security technologies.
This is where tokenization payment systems come in. Tokenization will exchange sensitive information such as your name and credit card number for an encrypted code, or “token”. This token is a jumble of meaningless numbers, and will be useless if stolen. The beauty of tokenization is that it replaces the magnetic strip, which holds static information, in exchange for a fluid token which could be set to change every time you make a purchase.
Tokenization also eases the burden of storing highly sensitive information for dealerships. By using a tokenized payment system, your dealership will never store credit card information so there is no sensitive data for hackers to steal.
Of course, this concept is not new—EMV, established by Europay, MasterCard, and Visa in the European countries, is a system of no-contact payment that does not require the swiping of the magnetic strip of your card. But unlike EMV, tokenization works online as well.
Some industry giants who are adopting this practice include Visa, MasterCard, and American Express. Apple and Google are also onboard with Apple Pay and Google Wallet, both of which use tokenization systems. Of course, RevolutionParts also offers tokenization to protect our valued dealership customers.
In the spring of 2014, a large auto parts eCommerce provider had a security breach that resulted in credit card information being stolen. Dealerships using this vendor had to send letters to their customers alerting them of the breach. A lot of trust was destroyed here. These customers were suggested to place fraud alerts and security freezes on their accounts, and had to through the hassle of getting new credit cards mailed and changing their passwords.
If widely implemented, tokenization could prevent this kind of major credit fraud. According to the FTC, 40% of all Americans were affected by credit card fraud in 2014. Don’t put yourself or your valued customers at risk! Get protection with tokenization. It’s about time to reduce that 40%.