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Choosing Vaulted Tokenization: The Advantages Over Vaultless

Blog post from Basis Theory

Post Details
Company
Date Published
Author
Basis Theory
Word Count
893
Company Posts That Month
8
Language
English
Hacker News Points
-
Post removed?
No
Summary

Vaulted and vaultless tokenization take different approaches to protecting payment and personally identifiable information in e-commerce. Vaulted tokenization stores sensitive data in a centralized secure vault and gives merchants randomly generated tokens that cannot be decrypted or reverse-engineered, allowing transactions to be processed without exposing underlying data to merchant systems. Vaultless tokenization instead tokenizes data locally through an encryption-based process that recipients can decrypt, enabling distributed architectures, potentially faster processing, and broad scalability but introducing risks if encryption keys or methods are compromised. The comparison argues that vaulted tokenization offers stronger security, reduces PCI-DSS compliance scope and associated costs, preserves merchant control over payment data, and provides a single integration point for multiple payment processors, while acknowledging that vault infrastructure must be managed to avoid performance or availability issues.

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