Tokenization

Tokenization is the process of replacing sensitive data, such as credit card numbers, with a unique identifier called a token. This helps to protect the customer’s data by reducing the number of places where it is stored and transmitted.

This technology allows ‘card on file’ processing without enormous risk to the cardholder and the entire payment card network. Tokenization is governed by the PCI standard and requires certification and audit of any provider of the service prior to its use.