October 27, 2009

• Heartland on E3 end-to-end encryption, Pt.4
    Meeting NRF requirements.

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  The E3 end-to-end encryption also addresses the National Retail Federation's (NRF) requirements for merchants to maintain debit and credit card information for the purposes of returns or inquiries. This requirement is met through a unique process that uses tokens and is created on the back-end that will accommodate the needs of returns and chargeback as well as other processes. This mechanism eliminates the need for any merchant to maintain debit and credit card information. Elefant notes the difference between a back-end and front-end tokenization system. He explains where as the back-end tokenization is a good system, the front-end exposes sensitive debit and credit card information from the moment the card is swiped until it arrives at the token server.

  According to Elefant, the inherent weakness of front-end tokenization lies within the software. The TRSM hardware prevents hackers from gaining entry into the payment system. Elefant hails Heartland's back-end tokenization process to be superior to a few of the other front-end tokenization systems recently introduced by its competitors. He says the company secures tokens created by the debit and credit card issuers during the transaction process that in turn sends back an automated reference number. The automated reference number is then stored along with the date, time, and last four digits of the debit or credit card for future reference.

  With ongoing threats and credit card scams appearing on a daily basis, Americans have lost all confidence in banks, lenders, card networks and merchants in protecting their sensitive information. New security payment processing systems such as the E3 end-to-end encryption system is sure to alleviate a great deal of concern. It is important to note that this E3 system and its competitors address security issues at the point of sale and automatic teller machines (ATM). However, as technology becomes more and more effective in eliminating this threat, cybercrime will escalate to monumental levels. All consumers must take the steps necessary to protect themselves while completing online transactions.

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