Tokenization

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

Tokenization is an innovative method of converting sensitive payment data into unique tokens. These tokens are used for secure identification and processing of payments.

Tokenization

Tokenization is a significant advance in the security of online payments. This method converts sensitive payment data, such as credit card information, 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, he cannot extract any useful information.

Tokenization offers several advantages. It significantly reduces the risk of data loss and fraud because sensitive information is not present in multiple places in the payment process. It also facilitates compliance 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. Since tokenization ensures the confidentiality and security of transactions, it is increasingly 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 repeated 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 transmission.

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

Tokenization FAQ

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

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

  • Tokenization improves the user experience by making repeated transactions faster and more convenient.

  • In addition to payment providers, customer management and authentication companies are also using tokenization to manage data securely.