While saved payment data can be helpful from an efficiency standpoint, it might not make sense to store customer card data for payments. Storing sensitive information can invite security risks that jeopardize your company’s brand if something goes wrong. And you’ll need to stay compliant, which comes with its own set of challenges.
Read on to learn what you should be aware of when deciding if your business should store card data for payments.
If you are considering storing card data, you have options. But when you’re handling the Primary Account Number (PAN) for lots of customers, you need to choose wisely.
When you use an internal system to store data for your business, you’ll gain more control over how you manage that data. You can also build your own workflows for billing and backend processes. But be prepared for increased exposure to data breaches and high compliance expectations.
As another option, you can turn to a third-party, off-site vault that a payment processor oversees. This approach means you won’t have to store data within your internal infrastructure. Instead, you’ll receive token access to manage payments rather than the PAN for a customer.
Lastly, you could avoid dealing with PANs altogether as the lowest-risk option. Working with a different payment provider throughout the checkout process ensures you won’t be burdened with sensitive information, which can be helpful if you’re in the fast-moving retail industry. If you’re trying to reduce the likelihood of security breaches, steering clear of PAN storage can be the smartest option.
With tokenization, you gain the advantage of not needing to maintain records of customers’ credit card information. You’ll have a token that stands in for the payment details. Any time a customer pays using a stored card, you’ll receive a token from the payment provider as a discrete way to process the payment.
Tokenization helps you avoid security problems because tokens don’t reveal raw credit card data. Further, they can be stored safely for customers engaged in repeat purchases. Your customers will appreciate not needing to type payment information every time they make a purchase, as well.
Before making any decisions about credit card data, you’ll need to be mindful of the Payment Card Industry Data Security Standard (PCI DSS) 4.0 regulations. You’ll want to ensure you’re adhering to rules for network security and access to sensitive data.
PCI DSS is designed to outline six goals and a dozen requirements to help you keep internal systems secure. If you’re using tokenization, you’ll have less sensitive data internally, which translates to less data to govern. On the other hand, using an internal system to store data can make you more vulnerable to data breaches.
While you can automate call answering in your office, you’ll need critical thinking to determine whether you have the staffing and systems in place to handle your chosen data storage method. Otherwise, you could face stiff fees and may even lose your privileges processing credit card payments.
Ultimately, customers want to have a simple and safe experience when they’re purchasing items online. When they can access saved payment methods and pull up their past receipts easily, they’ll feel more confident using your site. As a result, you’ll need to find an approach to data storage that considers the customer experience, security needs, and your capacity to manage data.
As customers have increasingly more purchasing platforms at their fingertips, you can stand out from the competition by helping them understand their financial options. Referring customers to 118 118 Money, for instance, can help them see the difference between credit and debit cards so they can manage their finances more carefully. Building financial literacy can also help customers understand chargebacks and billing errors as they navigate future transactions.
Every business will need to consider its unique circumstances before deciding whether or not to store card data for payments. Look at internal and third-party storage options, and weigh the benefits of not storing PANs at all. And review PCI DSS requirements to make sure your business is compliant.
When you take a measured approach to making your decision, you’ll create a secure payment environment that also provides an excellent customer experience.