Boost Customer Confidence with P2PE: A Key to Earning Trust

The sensitive data that your customers provide to you is sacred, and it is your job as a seller to protect it at all costs. 

Point-to-point encryption (P2PE) is a technological innovation that transforms a buyer’s financial details into a format that is unintelligible and, as a result, is useless to digital thieves throughout every stage of the payment transaction. 

As a business owner, it is to your advantage to learn what encrypted payment processing is, how it works, and the ways in which it can help to foster that all-important element of trust that is at the foundation of your success.

How P2PE works

The P2PE process contains several steps. The cardholder makes a POS purchase, an algorithm is used to encrypt the payment data, the information is sent to the gateway for decryption, and then transferred to the issuing bank for authorization or declination. 

The merchant is then notified and may also be sent a payment token.

The customer makes a purchase

When a consumer makes a purchase at one of your point of sale (POS) units, they will do so by tapping, dipping, or swiping their card through one of your readers or PIN pads. 

These devices are known as tamper-resistant security models (TRSMs) because they are equipped with built-in physical safeguards that shield both the hardware and software from compromise.

The data is encrypted 

At this point, the P2PE software does its magic, using algorithms to instantly mask all sensitive details, including tracking and payment specifics. Even if the system is breached or the data is somehow intercepted during transmission, these precautions help to ensure that no information is compromised.

Encrypted data is sent to the payment gateway

The encrypted codes are then sent to the payment gateway, or processor, to be decrypted. This takes place via a safe harbor or hardware security module device. 

The issuing bank authorizes the transaction

The details, now in their original form, can then be sent to the issuing bank, which then authorizes or declines the payment, and can even re-encrypt the data into another format if necessary. 

The transaction is completed

Finally, the merchant receives notification of the payment status, and can also receive a numerical token unique to the transaction that they can store and refer to in the future. 

For instance, this tokenization can be used to fulfill a refund without needing the buyer’s credit card details.

Validated P2PE solutions explained

The origin of the technology behind P2PE is the Payment Card Industry Security Standards Council, a consortium of financial industry stakeholders. This entity also helps to validate that all of the devices, applications, and processes that a solution uses for encryption and decryption are secure.

More specifically, the entity that provides the P2PE solution is responsible for ensuring the following three things: 

• First, all data must be securely encrypted immediately as soon as the card is read by the POS device. 
• Second, all hardware involved in the process must be hardened against malicious attacks and securely managed. 
• Third, any and all cryptographic keys used must be securely generated, transmitted, and stored.

Not all P2PE solutions are validated. In order for a solution to receive this trust badge, the provider and all associated entities must be audited by a P2PE-qualified security Assessor (QSA) and then be approved by the Security Standards Council.

Why P2PE will boost customer trust

Utilizing P2PE for payment transactions helps to instill customer trust. This happens because of data breach minimization, demonstrable compliance, secure and transparent transactions, and protection against evolving threats.

The headlines are teeming with disturbing stories of destructive data breaches that have compromised the systems of even the largest corporations. Before customers take the leap of faith that comes when they divulge their sensitive payment details, they want to receive solid assurances that their card information will be protected. 

When you can demonstrate that you use validated P2PE, you can give them the peace of mind that enables them to put faith in your brand.

Perhaps most important, P2PE within a PCI-approved POS device ensures that sensitive details never directly enter your systems, networks, or even the device itself. 

Fully encrypted until it is delivered to the safe harbor, the information is secure at all stages. Communicating this to customers goes a long way toward nurturing trust.

Additionally, displaying compliance with PCI standards provides tangible proof to your customers that data security is one of your highest priorities. 

In the unlikely event that a data breach of your PCI-compliant systems does occur, the information contained there will be virtually useless to the thieves, providing a vital protective layer that benefits both you and the clients you serve.

Customer confidence is the secret sauce that will enable you to outshine your competitors and raise your brand recognition to the next level. Harness the power of P2PE, and you truly can earn the trust and loyalty that will lead to elevated sales and loyal customers.