When customers use their cards to make payments online, the card details get sent to the payment processor. This is used to authorize and capture payments before they are settled with the merchant’s bank account. Online companies store customers’ payment card information in a secure database, which can only be accessed by authorized personnel.
What data is stored?
The company stores several pieces of data: the cardholder’s name, credit/debit card number, CVV2 code (3-digit code on the back of the card), and the expiration date. Depending on what type of payment method is used, additional information may be accessed such as billing addresses or security codes. All this data is encrypted with state-of-the-art security protocols like AES (Advanced Encryption Standard) so that it cannot be easily hacked or stolen. To further protect customer data, companies often store their databases in secure locations, such as a data center with limited access and multiple layers of security.
Companies also store transaction details such as purchase amount, order number, and time/date stamp. In addition to this information, some companies may store encrypted versions of customer passwords or other sensitive data related to the account associated with the payment card.
Extra Layer of Security
In addition to securely storing customers’ payment card details, companies will also verify the customer’s identity before processing a payment. This helps to prevent fraud and ensure that only legitimate transactions are processed. Companies may also use additional measures such as two-factor authentication for payments over a certain amount or for repeat customers. These measures help to provide an extra layer of security for online transactions.
Where is the data stored?
The payment card data is typically stored in a secure database on the company’s servers, but it can also be stored with third-party service providers. For example, companies may use services such as PayPal or Stripe for processing payments, and these will have their own systems for securely storing payment information. The data must always remain encrypted to prevent unauthorized access. Companies should also make sure that any third-party providers they use meet industry standards for security and privacy.
To ensure compliance with industry standards and regulations set forth by organizations such as PCI Security Standards Council (PCI SSC), companies must adhere to certain requirements for storing payment card information securely. This includes proper encryption, regular backups and testing for vulnerabilities. Companies must also ensure that the data collected is used only for its intended purpose and not shared with third parties without the customer’s consent.
It’s important to note that companies are not allowed to store the full credit card number; rather, they must mask certain digits with asterisks or other characters. This is done to protect consumer information and ensure compliance with industry regulations.
Building Customer Trust
Overall, properly storing customer payment card information is an important part of running any successful online business. By following industry standards and implementing additional security measures, companies can ensure that their customers’ data is safe and secure while providing a positive shopping experience. This can help to build customer trust and loyalty, giving businesses an edge in the digital marketplace.