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.
Customers love promotions! Buyers are often pulled in by one deal and wind up buying regularly priced merchandise in addition to, or sometimes instead of your discounted items.
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.