Tokenization
Tokenization replaces card numbers with stand-in tokens, enabling saved cards and subscriptions without holding card data.
What tokenization is
Tokenization replaces a card number with a stand-in token: the store keeps the token for charges and refunds, the payment provider’s vault keeps the real number, and the two only meet inside the provider’s systems.
Why tokenization matters
It’s how stores offer saved cards, one-click reorders, and subscriptions without holding card numbers: a stolen token is useless outside its issuing context, which shrinks both the breach risk and the PCI burden.
Where tokens do the work
- Saved payment methods on customer accounts
- Subscription and recurring billing
- Refunds and repeat charges without re-entry
- Network tokens that update when cards reissue
Frequently asked questions
Tokenization vs encryption: what’s the difference?
Encryption scrambles the number reversibly with a key; tokenization removes it entirely, substituting a reference with no mathematical relationship to the card. No key to steal, nothing to reverse.
What happens to tokens when a card expires?
Network tokens and account-updater services roll to the reissued card automatically, which is why tokenized subscriptions survive card replacements that would kill stored-number billing.