Tokenization
Auth & security
Replacing the card PAN with a non-sensitive token that maps to the original card via a secure vault. Tokens have no value if breached and cannot be reused outside the merchant or scheme that issued them. Tokenization significantly reduces PCI DSS scope and is the foundation of card-on-file billing.
In practice.
Tokenization is the practical route out of PCI scope: card numbers are swapped for tokens at capture and your systems never hold a PAN. It also underpins portable card-on-file setups. One commercial point worth checking early: whether your tokens can migrate if you ever change gateway, because token lock-in is real switching friction.
Related terms: PAN · PCI DSS · Card-on-File · Network token
Auth & security