What is Credit Card Tokenization & How
Does it Work?
Credit card tokenization is a process by which your credit card number is
replaced with a randomly generated series of numbers, called a "token." This
token can be used in place of your credit card number when making purchases
online or in-store. When you use a tokenized credit card, your actual credit card
number is never shared with the merchant.
Tokenization is a type of data security measure that can help to protect your
credit card information from being stolen in the event that a merchant's database
is breached. Tokenization can also make it more difficult for criminals to use
your credit card number if they happen to obtain it through other means.
If you're wondering how to use a tokenized credit card, the process is actually
quite simple. When you're ready to make a purchase, you'll simply provide the
merchant with your credit card's token instead of your actual credit card number.
The merchant will then use that token to process your payment.
Tokenization is just one of many steps that you can take to help protect your
credit card information from being stolen. In addition to using a tokenized credit
card, you should also be sure to only shop at reputable online retailers and to
keep an eye on your credit card statements for any unauthorized charges.