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Spotlight Innovatorsators
Spotlight Innov

SAePay is a family-owned business based in
Los Angeles, CA. For over 15 years, the com-
pany has been assisting merchants with pay-
U ment solutions to fit their needs. USAePay's
payment gateway supports most of the major platforms
in the credit card industry and works with some of the
leading check platforms. USAePay is pleased to work
with most of the larger merchant service banks in the US
and Canada.

What’s New:
Ramping up tokenization

ypically, in payments, when a merchant runs an electronic transaction, the
gateway is programmed to use encrypted data tokens in place of sensitive
card data to protect the merchant's side of the transaction flow. This pre-
T vents the possibility of a merchant storing private customer information
on their servers and makes it difficult for anyone to steal the information for mali-
cious purposes.

While this method is adequate for protecting the merchant in most cases, it doesn’t
fully accommodate the merchant's needs when they want to set up a recurring
transaction or handle a return-customer purchase without re-entering the card
information.

"Originally, before tokenization became a hot word, when someone ran a transaction and needed to run another payment,
we'd give them a transaction ID," said Vlad Galyuz, Vice President of Product Development at USAePay. "However, only
some actions could be performed, and others could not, without having the sensitive payment details from the original
transaction available."
A simple proprietary solution

According to Galyuz, the gateway providers had to come up with an improved version of the tokenization model to
meet the needs of the growing number of merchants who wanted to use subscription and membership models or offer
purchase incentive programs.

"We decided to make what is called True Tokenization, where a merchant can still run a transaction and get the response
code back, but they can also get a transaction token to store," Galyuz explained, indicating the merchant would then use
this token, that doesn't associate with sensitive card data, to do it again in place of running the card number.
Sales portal
The True Tokenization solution is 100 percent PCI compliant and merchants can even keep track of a client's card by
searching the last four digits. "Sometimes you still want to know what type of card it is, so on top of the token, we send
back the card type and the last four digits," Galyuz explained.

Galyuz noted the USAePay True Tokenization solution is exclusive to ecommerce purchases but it's still useful to brick
and mortar merchants who offer omnichannel buying options.
Moreover, it isn't limited to one merchant account. "If you have a chain of accounts with us, you can copy the token to
other locations," he said.
Promoting greater security

The True Tokenization feature is only available to merchants with accounts on the USAePay closed-loop system and
Galyuz indicated this is to ensure maximum security. Additionally, none of the data stored on the merchant side is
sensitive, so it can't be compromised in the event of a cyber intrusion.

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