Glossary

Payment Tokenization

Payment tokenization is a security technology that replaces sensitive payment card information, such as card numbers, with a unique digital identifier known as a token. This process ensures that during transactions, actual card details are never exposed or stored by merchants, thereby significantly reducing the risk of data breaches and payment fraud.

The token itself is useless if intercepted, as it does not contain any exploitable data and is often specific to a particular transaction or merchant. It can be used to authorize payment transactions without revealing any sensitive payment information, enhancing the overall security of the payment process.

Key benefits of payment tokenization include:

As digital transactions continue to grow, payment tokenization is becoming an increasingly popular method among businesses looking to secure their payment systems and protect their customers' data. This method not only secures individual transactions but also builds trust between consumers and merchants, crucial for the ongoing growth of digital commerce.

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