What is Tokenization?
Tokenization is a system that replaces your card details with a unique code — a token. During online payments, it’s the token that is transmitted, not your actual card details. This token works only for a specific purchase or merchant.
What does the token replace?
Card number, expiration date, and CVV
Cardholder name
Merchant or service link (binding the token to a specific store or platform)
Payment type — one-time or subscription
How does it work?
You enter your card details → the bank generates a token → the merchant receives the token instead of the actual data → the bank verifies the token and processes the payment.
Example
Akbar subscribes to a music streaming service. Instead of storing his actual card details, the service receives a token. Even if someone intercepts this token, they won’t be able to use it in another store or for a different transaction. The token works only for:
One specific service
A defined payment scenario (e.g., recurring charges)
The linked card
