P2P encryption (point to point encryption) is important for businesses to understand because it speaks to the security of the data flowing from the customer to the credit card processing company. While there are many ways to protect customer data, point to point encryption is among the highly regarded methods. This can help reduce fraud and intrusion from malicious events such as hacking. Through P2P, data is encrypted when a card is swiped, dipped, or retrieved via a NFC contactless payment method and then encrypted information is sent to the bank and merchant services company. This method leaves the information useless to thieves who might try and steal it.
Common Questions about P2P Encryption
How does P2P encryption protect my business?
There are no two ways about it. If you run a business and accept payments, you are automatically at risk of being attacked by data thieves. Having yours or your customers’ data stolen can become a massive headache for business owners, resulting in loss of business, customers, and incurring penalties from card brands or regulatory industries.
However, with a secure and effective security system protecting you like point to point encryption, business owners can rest assured the data they are responsible for is being protected. P2P encryption protects your business by encrypting the data from the customer the moment it is retrieved. When your customer swipes or dips their credit card, the bank that issued the card decides if the requested amount can be approved. If the purchase amount is approved, it lets the system at your store know and either approves or declines the transaction. With P2P, the data is encrypted as it travels from your business, to the bank, merchant services provider, and so on.
Does P2P encryption help with PCI compliance?
While many processors claim PCI compliance is required by law, it is not. PCI or Payment Card Industry is a set of standards that oversees data and its security for any organization that interacts with credit or debit cards. If, however, data is stolen and it is discovered through investigation that the point of intrusion was due to a business not being PCI compliant, then that business may suffer consequences of heavy fines, loss of trust from customers, and eventually a decline in business. P2P encryption is a great way to help stay PCI compliant and ensure your customers’ data is safe.
What is the difference tokenization and P2P encryption?
Tokenization is an additional way to protect customer data while gaining authorization for charges. Similar to how contactless payments (NFC, Apple Pay) work, the customer’s information is secured in a virtual vault and the data is substituted with a unique code that is used one time for that transaction only. This is called a “token”. If the token is stolen or compromised by hackers, they can do nothing with it because the code will mean nothing to the hacker.