Point of Sale (POS) Glossary
Tokenization is a data protection scheme that safeguards sensitive information by replacing it with an algorithmically generated code. In retail, data such as a credit card number is tokenized by a point of sale system, and the actual number is securely stored in a token vault.
Tokenization provides added security in a POS system because even if a criminal accesses a POS system database, the stored customer data remains protected since it is still secured separately. Payment gateways are often used for retaining a customer’s primary account number (PAN).
Tokenization differs from encryption in that sensitive data is represented via a token instead of being in a protected form that could be decrypted. With enough time and the proper decryption tools, encrypted data might be compromised, but tokenized data is protected against decryption if a POS system is hacked.
An eCommerce website is open 24/7 and accessible from all over the world. Being online and having physical store opens your business to a global market.
You’ve probably been at the register at the grocery store and asked if you wanted to contribute money to a charity as you checked out. Maybe you donated, or perhaps you found it was annoying. It might have depended on your mood that day, or possibly the charity was a deciding factor.