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The Perils of Storing Credit Card Data in Your ERP

Article excerpt: “A 2023 report from Insider Intelligence reveals that card-not-present (CNP) fraud is expected to result in $9.49 billion in total losses in 2023. Moreover, CNP fraud is projected to make up a whopping 73% of all card payment fraud losses this year, increasing 16% compared to 2019.



Credit Card data and padlock on a keyboard - security, e-commerce concept.

Did you know you may be storing customers’ valuable credit card data in your ERP without knowing it? With so many tech-savvy bad actors out there, this can pose a severe risk to your customers and your organization’s reputation.


Picture this: Your customer visits your online store. They complete their order and use their credit card, trusting that their sensitive information is in safe hands.


Maybe because you have encrypted the data, you think that’s enough. However, there’s more to it because you are still vulnerable to sophisticated hackers. We recommend tokenization as the best choice to meet compliance issues and reduce security vulnerabilities.


Here’s why storing your credit card data in your ERP may be risky:

Your ERP (Enterprise Resource Planning) is the heartbeat of your operations, where all your business data is stored.


Compliance challenges:

Regulations were enacted to ensure that you safely handle sensitive credit card information, whether you run your business on your own servers or in the cloud.


If you store credit card data in your ERP, your sensitive information is vulnerable to hackers, unauthorized access, and ripe for fraud.


Properly storing credit card data involves adhering to strict, complex compliance standards enforced by the Payment Card Industry Data Security Standard (PCI DSS). You could receive significant fines if you are not PCI compliant.


Security:

Small to midsized businesses can never match the security investment required to fend off breaches and sophisticated cyber threats. And maintaining the security of in-house servers is an ongoing task that requires regular monitoring and updates.


Backup systems:

And let's not forget the potential harm caused by vandalism, theft, or natural disasters.

Your ERP may have limited backup systems, making data recovery challenging in case of hardware failures or data corruption.


In conclusion, even though keeping sensitive data in your ERP may seem safer, more secure options are available that reduce your organization’s risk while requiring less investment.


How to protect credit card data in your ERP

As electronic data management rules continue to change, organizations face compliance requirements with multiple layers of standards and regulations. Therefore, implementing quality initiatives for data protection has become a priority for all organizations that accept payment cards – and this can be a tremendous challenge for small and medium-sized businesses.


The answer to your security concerns lies in tokenization.

Tokenization is the leading-edge solution that replaces sensitive credit card information with unique, random tokens. These tokens are simply placeholders for the original data. In this case, the sensitive credit card information – the actual data – is securely stored in a separate, highly protected token vault. The responsibility for this vault lies with a reputable third-party PCI-DSS-compliant processor (your merchant service provider can guide you in identifying these suitable processors). Even if unauthorized individuals manage to breach your system, all they will find are meaningless tokens without value, rendering the stolen data useless.


Leveraging tokenization is a smart move to safeguard your customers' valuable credit card data, build trust, protect your reputation, and shield your organization against potential financial loss.


Top advantages of tokenization


  • Enhanced data security – Tokenization ensures that the original credit card data is not stored in your system, minimizing the risk of data breaches and unauthorized access.

  • Simplified compliance – There are fewer stringent PCI compliance requirements when credit card information is not stored within your system, saving you time and compliance costs.

  • Customer trust and reputation – Organizations that prioritize data security and customer privacy boost their credibility and reputation, making customers more likely to trust them.

  • Seamless integration – Tokenization solutions seamlessly integrate with various payment platforms, making it a good option for organizations of all sizes.


Now, picture this newfound security: A strong shield safeguards your customers' credit card information, instilling their confidence and trust in your brand. Your customers can now experience worry-free shopping. And, without compliance worries, you can focus on what's most important – delivering exceptional products and services to your customers.


Time to up your security game?

At USTPay, our team of experts understand that your company is unique – and so are its needs. That’s why our approach to your digital transformation is collaborative and customized to your specific business goals.


When choosing a payment processing provider, consider a solution that aligns with your specific needs and offers flexibility.


For instance, USTPay offers Microsoft Dynamics 365 Business Central users a pre-integrated solution to tokenize credit card data and securely manage payments within the application.


In addition, with access to over 120+ payment gateways, you have freedom of choice.


Plus, you can save up to 30% on reduced processing fees by providing Visa/Mastercard Level-3 data.


UST works side-by-side with you to protect the data of your valued customers – and your reputation in the industry.


Related Reading

If you missed our recent blog on the importance – and security – of tokenization versus encryption, read it here.


About the author


Unlike other providers, we prioritize data security by keeping it off the servers. Our secure tokenization feature ensures that your customers' sensitive credit card data remains fully protected. We follow the highest standards for PCI compliance, isolating the data from payment processing systems and utilizing a secure hosted payment page.


Storing credit card numbers on servers can pose significant risks to your customers' data. But these risks can be mitigated by adopting tokenization through USTPay. Our solution was built with security in mind from the start.

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