Exam CAS-004 topic 1 question 560 discussion

o Tokenization: This process replaces sensitive payment information like credit card numbers with a unique, non-sensitive token. This token can then be used for transactions without exposing the actual card details, significantly enhancing security. o HSM (Hardware Security Module): An HSM is a dedicated hardware security device that securely stores cryptographic keys and performs encryption/decryption operations. Using an HSM for tokenization ensures that sensitive payment data remains protected within a highly secure environment, minimizing the risk of breaches.

The best solution for securely handling payment methods and ensuring they can be used for recurring transactions is A. Tokenization through an HSM. This ensures that sensitive payment data is replaced with secure tokens and stored in a highly secure manner, meeting industry security standards and minimizing the risk of data breaches. In the context of an e-commerce application performing recurring transactions, tokenization through an HSM allows the application to securely store payment method tokens and use them for future transactions without exposing sensitive information.