Tokenization story you need Vault based Vs Vault-less

The term tokenization refers to create a numeric or alphanumeric number in place of original card number. So that the chances hacking credit card numbers are minimised.

Let us see a quick example, where card number will be tokenized in the analysis of big data:

There are two kind of servers currently popular for implementing tokenization.

• Vault based 
• Vault-less

Vault based server - The term vault based means both card number and token will be stored in a Table usually Teradata tables. During increasing volume of transactions, the handling of Table is a big challenge.

Every time during tokenization it stores a record for each card and its token. When you used a card multiple times, each time it generates multiple tokens. It is a fundamental concept.

So the challenge here is Table size will be increased.

Tokenization process

Vault-less server - The recent established technology is much faster than vault based model, here the card numbers and tokens will not be stored. Whenever it received a request, it generates random number.

Even during de-tokenization, it just decode the random number and sends actual card number. Also possible to send numeric/alpha numeric tokens.

Also read: Top books on credit cards domain