tokenization amplified – xiintercept for sap · 2020-05-01 · tokenization amplified –...

Tokenization Amplified – XiIntercept for SAPHow to minimize the impact of the payment card industry data security standards (PCI DSS) and reduce risk

Paymetric | White Paper | Tokenization Amplified – XiIntercept for SAP 2

Table of Contents

Executive Summary 3

PCI DSS 3

The PCI Audit Process 4

PCI DSS Scoping 6

Tokenization and the Elimination of Scope from PCI Requirement 3 6

Tokenization Amplified – Introducing XiIntercept, the Ultimate Scope Reduction Mechanism 9

XiIntercept for eCommerce 10

XiIntercept for SAP 11

XiIntercept Stand-alone 12

Benefits of XiIntercept 12

Conclusion 12

About Paymetric 13


Executive SummaryThe Payment Card Data Security Standards (PCI

DSS) have presented a significant challenge for

merchants over the past few years. Maintaining

compliance with PCI DSS requirements is time-

consuming and extremely costly. That is why

merchants are continuously seeking ways to

reduce or eliminate their internal systems from

PCI scope; but one approach, which seems to

stand out the most, is tokenization.

Tokenization has increasingly been used to

help merchants reduce the scope of PCI DSS

compliance, particularly requirement 3. It has

been difficult for merchants to find scope

reduction anywhere beyond that until now –

introducing XiIntercept™ Solutions: Tokenization

Amplified.

PCI DSS

Prior to 2004, each card brand had a unique security

program that merchants were required to adhere to

including: the Visa’s Card Information Security Program, the

MasterCard’s Site Data Protection, American Express’s Data

Security Operating Policy, Discover’s Card Information and

Compliance and the JCB Data Security Program. These five

card brands realized it was becoming very confusing for

merchants to comply with multiple regulations and decided

to develop a uniform security standard, now known as the

Payment Card Industry Data Security Standard (PCI DSS),

released in December 2004.

In 2006, the Payment Card Industry Security Standard

Council (PCI SSC) was formed as a joint venture between

American Express, Discover Financial Services, JCB

International, MasterCard Worldwide and Visa. The PCI

SSC’s goal is to facilitate the broad adoption of consistent

data security measures and is responsible for the

development, management, education and awareness of

the PCI Standards including PCI DSS.

PCI DSS is a set of constantly evolving requirements

intended to help organizations proactively protect customer

account data. Any organization that processes, stores or

transmits cardholder data is required to comply with PCI

DSS. That means even if you process one transaction,

you must be PCI compliant. Failure to do so may result in

fines and the loss of a merchant’s license to accept card

payments.

The standard is organized into six governing principles that

contain a total of 12 requirements. Figure 1 illustrates these

requirements.

There are several methods to reducing PCI

DSS scope, but one, which seems to stand

out the most, is tokenization.


Figure 1: The Payment Card Industry Data Security Standards

All PCI DSS eligible organizations are required to certify

compliance on an annual basis, but that does not mean

merchants should think about PCI DSS as a point-in-time

validation. Compliance with PCI DSS should become part of

a company’s ongoing, daily security strategy and requires

constant attention. The requirements outlined by PCI DSS

are sound guidelines, but they can be quite onerous to

achieve. Companies are increasingly looking for ways to

outsource all or some of their payment card processing

components to PCI compliant vendors in an effort to limit

scope of these requirements and the associated cost and

effort that comes with maintaining them.

The PCI Audit Process

The PCI audit process was designed to assist merchants in

validating their compliance with PCI DSS. Depending upon

the individual company’s electronic payment acceptance

environment, the way in which PCI DSS validation is

handled will differ. Merchants that process over six million

credit card transactions a year must complete an annual on-

site review performed by a third party QSA (Quality Security

Assessor). Any system or component of that system which

is related to authorization and settlement of cardholder

data is in scope for compliance validation procedures.

Principle Requirement

Build and Maintain a Secure Network1. Install and maintain a firewall configuration

2. Do not use vendor-supplied defaults for system passwords

Protect Cardholder Data3. Protect stored cardholder data

4. Encrypt transmission of cardholder data

Maintain a Vulnerability Management Program5. Use and regularly update anti-virus software

6. Develop and maintain secure systems and applications

Implement Strong Access Control Measures

7. Restrict access to data by business need-to-know

8. Assign a unique ID to each person with computer access

9. Restrict physical access to cardholder data

Regularly Monitor and Test Networks10. Track and monitor all access to network resources and card data

11. Regularly test security systems and processes

Maintain an Information Security Policy 12. Maintain a policy that addresses information security


Figure 2: Systems in Scope for On-Site AuditMerchants that process more than six million transactions per year must complete an on-site audit annually performed by a third party QSA. Any systems,

or their associated components, involved in the processing, storage or transmission of cardholder data are considered in scope for the PCI DSS Audit.

Examples of systems in scope for an on-site audit:

Companies that process less than six million transactions per year, Level 2 through 4 in Figure 3 below, have the

opportunity to self assess their compliance with PCI DSS. These merchants are eligible to complete a self-assessment

questionnaire (SAQ) and the appropriate attestation document that is provided to the acquirer to validate PCI compliance.

There are five SAQ validation types based on how the merchant accepts electronic payments. SAQ A is least invasive and

only contains 13 questions while SAQ D is most invasive requiring 288 items to be validated.

Figure 3: SAQ Validation Categories

Examples of Systems in Scope for an On-site Audit:

All external connections into the merchant network (e.g., employee remote access, payment card company, third party

access for processing and maintenance)

All connections to and from the authorization and settlement environment (e.g., connections for employee access or for

devices such as firewalls and routers)

Any data repositories outside of the authorization and settlement environment where more than 500,000 account

numbers are stored. Even if some data repositories or systems are excluded from the audit, the merchant is still

responsible for ensuring that all systems that store, process or transmit cardholder data are compliant with PCI DSS

A POS environment – the place where a transaction is accepted at a merchant location (retail store, restaurant, hotel

property, gas station, supermarket or other POS location)

If there is no external access to the merchant location (by Internet, wireless, virtual private network (VPN), dial-in,

broadband or publicly accessible machines such as kiosks), the POS environment may be excluded

SAQ Validitaion

TypeSAQ Validation Type, Description & SAQ SAQ

1Card-not-present (e-commerce or mail/telephone-order) merchants, all cardholder

data functions outsourced. This would never apply to face-to-face merchants A

2 Imprint-only merchants with no electronic cardholder data storage B

3Merchants using only web-based virtual terminals, no electronic cardholder data

storageC-VT

4Merchants with payment application systems connected to the Internet, no

electronic cardholder data storageC

5All other merchants (not included in Types 1-4 above) and all service providers

defined by a payment brand as eligible to complete an SAQD


PCI DSS Scope

Because the scope of the PCI DSS requirements can be so

large and complicated, companies are constantly searching

for ways to reduce and eliminate any effort possible. The

great news is that there are multiple ways businesses can

potentially reduce the size of their PCI DSS scope.

All of the techniques outlined above are sound ways

to reduce PCI DSS scope. Depending on the individual

company’s payment acceptance environment, some

of these may or may not be appropriate strategies. For

instance, P2PE (Point to Point Encryption) is a great

technology, but is highly POS-centric. In card-not-present

(CNP) environments, P2PE is difficult to achieve because

card numbers must be manually entered into systems and

applications. If a merchant were to have both card present

and CNP payment acceptance landscapes, P2PE and

tokenization would likely be a great tandem solution. But

it is important to understand that with centralization, card

numbers are still stored on site, minimizing the scope of PCI

Requirement 3, but not eliminating it.

Tokenization and the Reduction of Scope From PCI Requirement 3

The PCI DSS scope reduction technique that works best

for most CNP merchants is a combination of outsourcing

and tokenization techniques described above. Tokenization

is a solution that affords businesses that opportunity to

eliminate the storage and/or transmission of cardholder

data in enterprise systems and applications.

More than 25 percent of Gartner clients have already

adopted a payment card tokenization solution to reduce

the scope of their PCI assessments, and three out of

four clients calling about PCI inquire about tokenization.

Because tokenization is delivered on-demand, it is

extremely affordable compared to the investment

businesses would have to make in costly on-premise

encryption solutions. Additionally, Gartner research

validates this stating one attractive and viable way for most

companies to limit overall compliance costs is to reduce the

scope of the PCI audit by tokenizing card data. 2

1 “Choosing a Tokenization Vendor for PCI Compliance,” Gartner – Avivah Litan

2 “Choosing a Tokenization Vendor for PCI Compliance,” Gartner – Avivah tan


Tokenization works by replacing cardholder data entered

into enterprise systems or applications with a surrogate

value known as a token. A token is a unique ID created

to reference the original data. The original data is stored

off-site in a secure data vault with reference to token. The

merchant no longer possesses sensitive cardholder data

and the token can be passed throughout systems in the

enterprise to meet the demands of customer interactions

and support analytics without disruption of day-to-day

business activities. In the event of a data security breach,

tokens cannot be reverse engineered to retrieve the

original number and are thus useless to thieves.

Tokenization not only protects businesses from a data

security breach, but also helps reduce the scope of PCI

compliance, particularly requirement 3. PCI Requirement 3

mandates the protection of stored cardholder data. Prior

to the advent of tokenization, most companies leveraged

encryption solutions to protect stored cardholder data.

However, merchants increasingly understand the cost and

risk advantages associated with not storing data internally

with the added benefit of limiting PCI compliance and

scope.

Figure 4: Before TokenizationIf a tokenization solution is not utilized, merchants are forced to deploy costly encryption solutions to protect cardholder data. Encryption and key

management technology must be implemented on each system where the numbers are stored. As the data passes between system components, it

must go through the dreaded encrypt, decrypt, re-encrypt process because keys cannot be shared. This method exposes the raw card number in transit,

thereby increasing risk.

Mer

chan

t

CSR TakesOrder

SAP CRM

Web Store Order

Sales & Distribution

Finance Processor Issuing Bank

1234

1234

1234

1234

1234

123412341234

Authorization

Encrypted

Settlement

Authorization

1234


When companies utilize encryption, their systems remain

in scope for PCI DSS because encrypted cardholder data is

still considered PAN (Personal Account Numbers) – a more

costly and time-consuming scenario. In addition, because

encryption technology is key-based, if a breach were

to occur it is feasible that the criminal could get access

to each and every payment card number stored in that

system. Not only would that be costly to deal with, but it

would also be extremely damaging to a company’s brand.

The bottom line is that encryption solutions still leave

systems vulnerable to attack.

FIGURE 5: After TokenizationWith tokenization deployed, sensitive cardholder data is neither transmitted nor stored. Tokens can be easily passed from one system to another, never

exposing raw data in transit. Because you only store tokens, the risk of a data security breach is greatly reduced and you have a strong argument for the

removal of integrated systems from the scope of PCI audits.

According to Gartner Group, the cost to roll

out encryption solutions is $6 per customer

record. For a company with 100,000 records,

that means they would spend $600,000.

Mer

chan

t

CSR TakesOrder

ERP CRM

Web Store Order

Sales & Distribution

Finance

Authorization

Token

1234

1234

Tokenization

Authorization

Settlement


Tokenization Amplified: Introducing XiIntercept, the Ultimate Scope Reduction Mechanism

One of the largest drivers for adoption of tokenization

solutions to protect stored cardholder data has been PCI

scope reduction. Many firms have leveraged tokenization

to eliminate the scope of PCI Requirement 3. However, as it

becomes more challenging to maintain compliance with PCI

DSS, merchants are looking for ways to further reduce the

scope of compliance. The great news is now they can.

Paymetric has developed XiIntercept™, a data intercept

solution, a technology based on a simple premise – capture

the card number as early in the workflow as possible to

reduce or even eliminate the merchant’s PCI footprint.

How does it work? Sensitive information is intercepted

and tokenized at the time of entry. The secure token is

then provided to the merchant for use in authorization and

settlement. Raw data never enters protected merchant

systems and applications. XiIntercept solutions offer the

ultimate breach protection, while dramatically reducing the

cost and effort to achieve PCI compliance.

The Ponemon Institutes research shows that

the negative publicity associated with a data

breach incident causes reputation damage

that may result in abnormal turnover or

churn rates as well as a diminished rate for

new customer acquisitions.

– Ponemon Institute3

The most attractive advantage of XiIntercept is that, if

properly architected, merchants may be able to qualify

for PCI SAQ-C, which means the merchant’s annual audit

scope would be significantly reduced from the PCI SAQ-D

requirements.

3 Ponemon Institute 2013 Cost of a Data Breach: Global Analysis

FIGURE 6: XiIntercept Solutions – Payment Processing Without Merchant Exposure to the CardXiIntercept is a solution that allows merchants to process electronic payments without ever having exposure to the actual card number. When a customer

places an order with the merchant, the raw card number is sent to Paymetric to tokenize the card number and return the token to the merchant. The

merchant subsequently submits the token to Paymetric to obtain authorization for electronic payments. All of this is done without any change to the

customer’s experience.

Processor

Merchant

Customer

1234 1234


XiIntercept for eCommerce

When a cardholder enters sensitive information through a merchant’s web store, the raw data is transparently intercepted

from the cardholder’s browser window. A token is generated and routed back through the cardholder’s browser to the

merchant’s server for subsequent use in payment authorization and settlement. The process completes in seconds, entirely

transparent to the cardholder. The merchant never transmits, processes or stores the raw data, but instead only stores

the token.

Figure 7: XiIntercept For eCommerce

CheckoutClient Places Order

MerchantWeb Store

Checkout Checkout

Client Browser (B2B or B2C)

Mer

chan

t’s S

yste

ms

SAP

Processor

Issuing Bank

Client places order on

Merchant’s Web store

Client fills in cardholder data in

Paymetric fields and submits

Client goesto checkout

Gateway

Data Intercept


XiIntercept for SAP

XiIntercept for SAP works by invoking a secure card entry web page at each point where a user would enter a value into

the SAP card number field. The card number is tokenized and the token is returned to SAP and automatically populates the

original payment card field to subsequently be used for authorization. The user experience is seamless, normal workflow

can be followed and day-to-day business activities can be completed using secure tokens. Because the raw card number

was intercepted, it never enters the SAP system, placing the SAP system in a position to be removed from PCI scope.

Features:

§ Prevents the entry of sensitive cardholder data from entering the SAP landscape

§ Centralizes control and logging of tokenization request for PCI DSS and internal audit reporting

§ Substitutes the card number with a merchant-specific token value which protects SAP customers against accidental exposure and is useless to hackers, thieves and any external parties

FIGURE 8: XiIntercept for SAP

SAP ERP

SAP GUI

DI GUIAGENT/

CSRCUSTOMER PAN ZONE

PAN FREE ZONE

Workstation

Mer

chan

t D

ata

Cen

ter

Benefits:

§ Zero footprint for user workstation

§ Centralizes configuration and auditing

§ Easily scalable across SAP user landscape

§ Minimizes the risk of incurring fees, fines or legal costs associated with a data breach


XiIntercept Stand-alone

When taking a payment, a merchant accesses the XiIntercept solution via a web browser that instantly generates a token

for the card number entered. This token is copied into and flows through the enterprise payment acceptance system for

storage or subsequent authorization and settlement. The merchant never transmits, processes or stores the raw card data

outside of XiIntercept Stand-alone, but instead transmits, processes and stores only the token.

Benefits of XiIntercept:

§ Prevents sensitive cardholder data from entering merchants’ enterprise payment systems and applications

§ Substitutes credit card numbers with tokens, rendering the data useless to thieves

§ Minimizes the likelihood of fees, fines and legal costs associated with a data breach

§ Reduces scope and cost of achieving and maintaining PCI compliance

§ May qualify merchants for SAQ-C, reducing the number of compliance requirements from 288 to 80

Conclusion

Merchants are becoming increasingly interested in

solutions that reduce or eliminate PCI DSS scope. For

years, tokenization had been used to mitigate the scope.

XiIntercept solutions are a natural evolution of tokenization

technology that can help forward-thinking businesses

further reduce PCI DSS audit scope and even qualify

merchants for SAQ-C.

FIGURE 9: XiIntercept Stand-alone

Processor

Issuing Bank

Issuing Bank

Mer

chan

t’s

Sys

tem

s

Customer Order CSR

1234

1234

SAP

Order

Delivery

Invoicing

Sales &Distribution

PASAdapter

Comms

Settlement

GL Posting

GL Posting

Manual Settlement Deposit

Finance

About Paymetric

Paymetric, Inc. is the standard in secure, integrated payments. Our innovative payment acceptance solutions expedite and secure the order-to-cash process, improve ePayment acceptance rates, and reduce the scope and financial burden of PCI compliance. Leading global brands rely on Paymetric for the only fully integrated, processor-agnostic tokenization solution, supported by dedicated customer service. Paymetric is a nationally award-winning industry leader recognized for continual innovation, SAP partnership and world-class support since 1998. For more information, visit paymetric.com.

1225 Northmeadow Pkwy | Suite 110

Roswell, GA 30076

T: 678.242.5281 | F: 866.224.5867

paymetric.com ©2014 Paymetric, Inc. All rights reserved. The names of third parties and their products referred to herein may be trademarks or

registered trademarks of such third parties. All information provided herein is provided “AS-IS” without any warranty.

tokenization amplified – xiintercept for sap · 2020-05-01 · tokenization amplified –...

Documents