Tokenization is a powerful security process that replaces sensitive data, like a full credit card number, with a unique, non-sensitive equivalent called a “token.” This token has no external or exploitable meaning or value. It can be used for processing payments without exposing the actual card details. If a data breach occurs, only the useless tokens are stolen, not the real card numbers.
Frequently Asked questions (FAQs)
- How does tokenization make payments safer?
It removes the need for a merchant’s systems to ever store or transmit a customer’s real card number after the initial transaction. This dramatically reduces the risk of data theft. Stripe creates a token for each transaction, and that’s what Charge for Stripe uses to process the payment. - Is tokenization the same as encryption?
No, though they are often used together. Encryption uses a mathematical algorithm and a “key” to hide data, and the data can be un-encrypted with the correct key. Tokenization replaces the data entirely with an irreversible token. - Are payments made through digital wallets like Apple Pay tokenized?
Yes. This is the core security feature of digital wallets. They use a specific token for your device (a Device Primary Account Number or DPAN) instead of your real card number.
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