Tokenization

(Tokenization is known in English as "tokenization").

Tokenization is an innovative method in which sensitive payment data is converted into unique tokens. These tokens are used to securely identify and process payments.

Tokenization

Tokenization is a significant advance in the security of online payments. With this method, sensitive payment data, such as credit card information, is converted into unique tokens. A token is a random string of characters that has no connection to the actual data and is therefore worthless to potential attackers.

During the payment process, the buyer sends the token to the merchant instead of the actual payment data. This ensures that sensitive information is never transmitted in plain text or stored on the merchant's servers. Even if an attacker gains access to the tokens, they cannot extract any useful information.

Tokenization offers several advantages. It significantly reduces the risk of data loss and fraud, as sensitive information is not available at multiple points in the payment process. It also makes it easier to comply with security standards and regulations.

The method is not only used for online payments, but also in other areas such as customer account management and authentication. As tokenization ensures the confidentiality and security of transactions, it is increasingly being used by payment providers such as Payrexx to provide first-class security for merchants and customers.

Tokenization examples

A customer uses a token to make repeat purchases on an e-commerce website without having to re-enter their credit card details.

In a mobile payment application, tokenization generates a token for each transaction to ensure the security of the transfer.

A subscriber service does not store payment data directly, but uses tokens to process recurring payments securely.

Tokenization FAQ

  • Sensitive data such as credit card details, bank account information and personal identification features can be tokenized.

  • Yes, because tokens have no direct link to the original data and cannot be used for fraudulent purposes.

  • Tokenization improves user-friendliness, as repeated transactions can be processed faster and more conveniently.

  • In addition to payment providers, companies in the areas of customer management and authentication also use tokenization to manage data securely.