Credit card tokenization is a simple term used by the credit card software and payment systems to enhance security. Tokenization has become quite popular in the technology implementation and it is also a buzzword. Although tokenization can have different uses, payment is one of the most common uses of the same.
We have seen a drastic rise in mobile payments and so, there is a need to increase security of such payments and so tokenization has become quite popular.
If you have talked to the alternate payment providers in the past, you must have heard this term more than once.
In payments, tokenization lets the users securely store their credit card data in mobile wallets, online stores, and POS terminals making it so they do need to continually enter their credit card information during their future purchases.
In a nutshell, tokenization is the process of protecting credit card data by replacing the data with a randomly generated number called token. Thus, tokenization replaces the credit card details to help secure any kind of sensitive data during the credit card transactions.
Many people confuse tokenization with encryption but that is not right. Encryption is a process to encrypt cardholder’s data and decrypt it when the data needs to be used.
Tokenization enjoys a number of benefits and if you have used tokenization earlier, you must have realized those benefits as well. Talk to your alternate service providers to know more about tokenization. You can talk to our team and we will help you.