By Katie Flood, CardNotPresent.com
For those in the CNP payment space, the words on everyone’s lips this year have been, “EMV is coming.” It’s not quite “Winter is coming,” but it does carry a certain portent of doom, a sense that our collective destiny is tied to the arrival of EMV. No doubt there is some truth to this: Once fraudsters can no longer use stolen cards in stores, it stands to reason they won’t simply throw in the towel. Rather, they will seek out easier targets for their criminal activity, with e-commerce being the most obvious.
The extent of this problem remains to be seen, but regardless of what happens in October and beyond, tokenization is expected to be a major security solution in CNP payments environments going forward. Tokenization is the process by which a piece of data with value (e.g., a credit card number), is fed through an algorithm to generate a piece of data which has no inherent value. The benefit to e-commerce merchants is reduced risk and PCI scope.