Tokenization
Category: Payments
Also searched as: Payment token
Definition (plain English)
Tokenization replaces sensitive payment data with a token that can be used for future transactions without exposing the original card or account details.
Why it matters commercially
It supports repeat billing, stored payment methods, and lower data-security exposure when implemented through a compliant PSP or gateway.
Example
A B2B portal tokenized cards for repeat carton orders so finance could charge approved accounts without storing raw card numbers.
Common mistake
Treating tokens as harmless in every context without checking processor scope, permissions, expiry, customer consent, and refund or dispute behavior.
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