Why Not Store Customer Data Internally

Design decisions from the perspective of security risks and legal liability

securitypersonal data protectiondata managementrisk
3 min read

About This Article

This article revisits the conventional wisdom that "customer data should be stored internally" and explains why choosing not to store data can be the right decision. This decision was derived from three perspectives: security, legal liability, and operational costs.

Traditional Approach and Its Problems

When "Storing Internally Was Standard"

In traditional EC sites, storing customer information in your own database was common practice. Customer data was considered an "asset," and it was natural to manage and utilize it internally.

However, this approach carries significant risks that are often overlooked.

Risks of Internal Storage

Security
RiskData breach
Specific ImpactLegal liability, damages, loss of trust
Security
RiskUnauthorized access
Specific ImpactService outage, data tampering
Legal
RiskPersonal data protection law violations
Specific ImpactAdministrative penalties, fines
Legal
RiskGDPR violations (overseas customers)
Specific ImpactHigh sanctions
Operational
RiskSecurity audits
Specific ImpactRegular costs and effort
Operational
RiskVulnerability response
Specific ImpactEmergency response resources
Operational
RiskBackup management
Specific ImpactInfrastructure costs

Choosing to Store Data in Shopify

Shared Responsibility

By storing customer data in Shopify, you can share security responsibilities.

Shared Responsibility Model
Your Responsibility

API call authentication management, proper access permission settings, your code's security, employee access management

Entrust data
Shopify's Responsibility

Data encryption and storage, infrastructure security, unauthorized access prevention, 24/7 monitoring, security certification maintenance, regular vulnerability response

Shopify's Security Track Record

Shopify holds the following security certifications:

  • PCI DSS Level 1: The highest level security standard in the credit card industry
  • SOC 2 Type 2: Security audit by third-party organizations
  • GDPR Compliant: Complies with Europe's strict personal data protection regulations

Maintaining these internally would require enormous costs and specialized expertise.

Implementation Points

Separating Temporary Processing from Persistent Storage

Data Processing Principles
Customer enters information

Submit data via registration forms or my page

Your server (temporary processing only)

Validation, format conversion, API calls. Data is not stored

Shopify (persistent storage)

Securely store customer master, purchase history, point information

Rules to Follow

  1. Don't log personal information: Don't output names or email addresses even in error logs
  2. Proper disposal of temporary variables: Ensure deletion from memory after processing
  3. Minimal data retrieval: Only retrieve necessary information via API
  4. Short session validity: Authentication tokens valid only for minimum required period

Benefits of This Design Decision

Cost Reduction

  • No need to hire security specialists
  • Reduced security audit costs
  • Reduced infrastructure operational costs

Risk Mitigation

  • Minimize impact of data breaches
  • Distributed legal liability
  • Reduced emergency response burden

Improved Development Efficiency

  • Reduced security implementation effort
  • Focus on core business logic
  • Rapid release cycles

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