Credit Card Tokenization: What It Is, How It
Works & Its Benefits
Credit card tokenization is a process by which your credit card information is
replaced with a unique, randomly generated number (called a token) that can be
used to make secure payments online. This token is then stored in a secure
database, so your actual credit card number is never transmitted during an online
transaction.
There are several benefits of credit card tokenization:
● It helps to reduce fraudulent activity, as your credit card number is never
actually transmitted or stored online.
● It can help to simplify online payments, as you only need to remember the
token rather than your full credit card number.
● It can make online payments more secure, as the token can be quickly
revoked if it is lost or stolen.
Tokenization is an important part of online security, as it helps to protect your
credit card information from being compromised. If you are making online
purchases, be sure to check that the website you are using supports credit card
tokenization. You can usually find this information in the website’s security or
privacy policy.