A company uses 'Tokenization' for credit card numbers. What is the primary benefit of tokenization over encryption for the merchant?

Answer options:

Tokens can be mathematically reversed to find the card number.

It reduces the scope of PCI DSS compliance because the merchant does not store the actual card data.

Tokens are compatible with legacy systems that require 16-digit numbers.

It eliminates the need for firewalls.

How to approach this question

Tokenization = Outsourcing the risk. You hold a worthless ticket, the bank holds the coat.

Full Answer

B.It reduces the scope of PCI DSS compliance because the merchant does not store the actual card data.✓ Correct

Tokenization replaces sensitive data with a non-sensitive equivalent (token). Since the merchant stores only the token (which is useless to hackers), their systems are often out of scope for many PCI DSS requirements.

Common mistakes

Thinking tokenization is just another form of encryption.

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