Credit Card security
When I introduce the Lucrotec bill paying innovation to CFO’s without fail they ask, “how does this work?” “How do you produce cash rebates from our payables?” The lead story in Cash Rebates the lucrative marriage between tight security and elegant funds transmittal!
Credit Card security is critical in understanding rebates. Why? Security is a bi-product benefit for the user and a self serving feature for a bank. Just imagine how much a bank spends on credit card security problems. Replacing compromised cards, fighting fraud, and refunding losses are just the most obvious expenses. More secure methods like tokenization with Virtual cards save banks time and money. Incentivized rebates are a small price to pay for less expensive and more secure transactions.
Virtual Credit Cards – V Cards are are what they sound like. Credit cards without the physical card. There is no number to lose or have stolen. There is no swiping or inserting. We use them in our phones [phone security is another matter]. Vcards in phones is about convenience for both the merchant and the customer. Vcards in bill payments is about security and compliance. They provide high security and elegant funds transmittal.
Tokenization – Tokenization is not a new security method. Its current enthusiastic market embrace is driven by the expansive growth of internet speed and access. Instead of encryption, which translates plain numbers into code that requires an algorithm and key, Tokenization stores the information in a secure database and generates a unique shared key [token] between the two parties. As the information is not transmitted Tokenization is favored by compliance requirements and the organizations that sanction them.
GDPR – General Data Protection Regulation is a new EU standard that “harmonizes” data privacy laws across Europe. It mission is to provide greater protection to individuals.Certainly US standards in this area will evolve in the coming years. GDPR favors tokenization as an element of its protection.Explore how GDPR is different from current US Law. An advantage of Tokenization is that personal information “stays put” rather than being transported – easy to imagine this playing out as the US regulatory system address privacy and security concerns.
Matt Burgess with WIRED details what you need to know about the May GDPR launch in this article.
This Forbes article by Yaki Faitelson explores how GDPR might impact schools, especially schools with international students. Take a Look. An upside to the Lucrotec system is that we are already GDPR compliant. Good news for you.