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What is tokenization?

to - ke - ni - za - tion
noun

Tokenization is an advanced technology used to protect sensitive credit card information. In the context of payments, tokenization replaces actual credit card data with unique identification symbols during transactions, enhancing the security of the payment process and ensuring the protection of customer data. This practice helps to create a secure environment for online transactions and instills confidence in both customers and businesses.

How does tokenization work?

The process of tokenization unfolds as follows: when a customer initiates a payment, their credit card information is never exposed in its true form during the transaction. Instead, a token, a unique and temporary stand-in, is generated for that particular interaction. This token holds no intrinsic value and cannot be exploited by malicious actors. Subsequently, in the event of any data breach or unauthorized access, the compromised information remains non-sensitive and inconsequential.