Tokenization Explained: Understanding Digital Payments With Chargent - YouTube

you might have heard the term  tokenization thrown around and  

you're curious what exactly does that  mean well you come to the right place  

we're gonna cover this in business terms  that all of us can understand let's dig in

first off it's important to understand the  tokenization is an industry standard and  

it's more or less required by the pci-dss for  all organizations that take credit cards now  

that's not to say that it's impossible to be PCI  compliant without using tokenization however it  

does become much more challenging tokenization  is a technology that was developed industry-wide  

to ensure the cardholder data is kept secure this  is accomplished by the receiver of the cardholder  

data assigning a random string of characters  and returning that string to the provider of  

the cardholder data okay I promise we talked  about this and simple business terms let me  

try that again and short us merchants we give the  credit card number through encryption to a trusted  

partner most likely your payment gateway the  payment gateway will in turn give you a reference  

that represents that credit card in their  system but just for you now a token it cannot  

be deciphered because it wasn't encrypted instead  this is a random string that's assigned to that  

credit card number that you the merchant gave that  gateway I guess this probably makes sense for most  

of us however I've come up with a kind of simple  analogy that I think paints the picture pretty  

well and it also helps us understand how the  system is secure ok let's say that you go to Las  

Vegas to play blackjack and let's also say that  you start off the MGM Grand or you sit down at the  

table you hand them $100 and they hand you back  $25 tokens and while you're in the MGM Grand those  

tokens are essentially as good as cash money now  let's say that you want a hundred bucks from them  

then you walk across the street to go to New York  New York now you may know that New York New York  

is actually owned by MGM however your tokens from  the MGM Grand are not gonna work with the New York  

New York they're only currency at the MGM Grand if  you were to put them on the table at New York New  

York you'd be told that you can't play with them  they're just no good there so I believe that this  

is a solid analogy for the payments industry  and how we work with tokens a token that you  

get from your payment gateway is only good when  you the merchants are signed in to that payment  

gateway the tokenize card data might be able to be  shared across multiple meds and that does happen  

from time to time and something you should talk to  your payment gateway about if if that's something  

you need but this is a big part of what makes this  system so secure because of a disgruntled employee  

or some other sort of attacker manages to get  their hands on these tokens there have no use  

to them even if this would-be attacker somehow  also got your credentials and got signed in to  

your gateway account they still would be unable to  use those tokens to get any money as those tokens  

are tied through your merchants ID to your bank  account even if this attacker did try to charge  

something against the token the money would be  in your bank account fully within your control  

for you to reverse if you wanted to dive deeper  into the technical details there's many other  

videos here on YouTube that will explain that  in whatever detail you want to understand I'm  

hopeful that this video helps some of us business  users better understand the value and that tokens  

can bring to our businesses and why we should  all be using them it's worth noting that there's  

sometimes a cost that your gateway is going to  tack on to tokenize that cardholder data for you  

and it's also noteworthy that most gateways now  will also tokenize bank account data for all of  

us so both cards and accounts can be tokenized  and the value I feel like it's easy to see if  

you're not storing Christopher's credit card  numbers then you couldn't be at fault if they  

end up in the wrong hands at charging we recommend  that all of our customers tokenize all of their  

card data that they use throughout their entire  organization to facilitate this we have developed  

our API our payment console and our payment  request features to ensure that the protected  

cardholder data that you've been entrusted with  is never stored inside the Salesforce system for  

any amount of time have questions about anything  we've talked about here well feel free to drop  

a question in the comments below or you can also  click the link here on your screen to get in touch  

with us the chargin team is always here to help  hey thank you for watching our video and while  

you're here please subscribe to our channel  click that notification bell for immediate  

updates and if you'd like to talk payments  please get in touch we're always here to help