Glossary
Index Token
An index token is a type of cryptographic token used in the field of digital payments and data security to replace a Primary Account Number (PAN) in transactions. This replacement is designed to protect sensitive data, such as credit card numbers, from being exposed or stolen during the transaction process.
The index token is generated based on a given index that correlates with an unpredictable value. This method ensures that the token is both non-reversible and unique to each transaction or instance. Unlike traditional deterministic tokens, where tokens are generated using a consistent method that might be vulnerable to prediction or reverse-engineering, index tokens use a method that enhances security by making the tokens difficult to predict.
The primary function of an index token is to securely represent the PAN in various systems and databases without exposing the actual PAN, thereby reducing the risk of fraud and data breaches. During a transaction, the token is used in place of the PAN, ensuring that the sensitive data is not transmitted over potentially insecure networks or stored in easily accessible formats.
This approach not only helps in complying with data protection regulations like PCI DSS but also minimizes the impact of a data breach, as the tokens would not provide usable data without the associated secure de-tokenization system. Index tokens are part of a broader approach to enhancing payment security through the use of advanced cryptographic techniques.