Not-for-Profits Need Layered Data Security

24 Jun
2015

Not-For-Profit (NFP) and charity organizations need to process donations from every acceptance channel—including call centers, mobile apps, mail-in payments, and online payments—to make it as convenient as possible for their supporters to contribute. Unfortunately, all these channels are susceptible to hacks, phishing, and scammers searching for payment card and PII data. For every fraudulent donation and resulting chargeback, that’s lost funding for your beneficiaries. For every stolen payment account, that’s a donor loosing trust in your organization.

The major dilemma in this scenario is that most Not-for-Profit organizations do not have the budget to adequately protect their multi-channel acceptance environment. They need a solution that reduces the costly scope of PCI compliance, eliminates the risk of stolen data, and combats fraudulent transactions. The cost and work effort of PCI compliance is directly related to the amount of payment card data you house in your environment. The more data you store, the greater your risk of an expensive data breach. Step one is always to get rid of the toxic data with tokenization and reduce your PCI compliance costs.

Tokenization and Fraud Prevention Work in Harmony

What about preventing the costs of fraud? Fraud prevention has many complexities, due to the uniqueness of each organization’s data environment. Layering your data security approach is really the only way to fight fraud and prepare for the inevitable data breach. Layering combines two solutions—tokenization and fraud authentication—at the point of transaction, in real time, so that your organization and donors don’t experience any latency in the donation experience. In tandem, the two solutions remove toxic data to prevent data theft while verifying the transaction with fraud prevention controls. Chargebacks and fraud are minimalized with the successful layering of tokenization and fraud authentication services.

Tokenization manages a large portion of your data security solution because it removes toxic sensitive data from your environment. Data thieves can’t steal what’s not there, since tokens are only meaningless numbers to them. However, there is no single solution to providing total data security. Anyone who tries to sell you that idea most likely has some oceanfront property in Flagstaff to sell you as well. That’s why tokenization and fraud prevention services are an ideal combination, because in concert they save you a massive amount of money, time, and customer frustration, while also bringing your risk in a data breach down to almost nothing.

Fraud Prevention Services Are Not as Expensive as You Think

Service providers that prevent fraud and the resulting chargeback fees and fines have become a major industry due to the rash of payment card fraud worldwide. The fees and fines associated with chargebacks can cost organizations hundreds of thousands of dollars over time. The right fraud prevention tool will reduce your fraud to the lowest levels while tokenization removes toxic data from your environment, reducing the cost of your PCI scope and compliance. This is important, because PCI compliance is incredibly expensive to maintain. Reducing PCI controls to the very minimum with a custom tokenization solution saves time and money that can be reallocated to other services such as fraud prevention. To make these services work together requires an open integration platform. And only the TokenEx Cloud Security Platform can readily integrate services such as fraud detection, chargeback prevention, card refresh, and marketing analytics into your payment stream. TokenEx acts as the central integration point among your payment processors and service providers, keeping all sensitive data out of your systems and safely vaulted in our secure cloud platform.

Now you have the assurance that your donors’ payment card and PII data is safe, and you are processing valid cards to optimize your donations, resulting in more funding for your beneficiaries. Without the proper security layers in place, you risk exposing donors’ payment card and PII data and closing off those donation channels permanently. Start planning your layered approach to data security today. Call us for a consultation.

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