Credit Card Tokenization

byPaytm Editorial TeamLast Updated: July 31, 2025

Meaning

Credit Card Tokenization is a process where the actual card number is replaced with a unique digital code or “token” for each transaction.

Purpose

It helps secure your card details during online or in-app purchases by hiding the real card number from merchants.

Benefits

Tokenization reduces the risk of fraud, data leaks, and unauthorized transactions.

You May Also Like

ALM: Asset/Liability ManagementLast Updated: October 16, 2024

What is ALM Asset/ Liability Management or ALM is an approach used by companies and financial institutions to…

Contactless PaymentsLast Updated: July 31, 2025

Definition Contactless Payments are transactions where the user does not need to touch the payment terminal physically. These…

UPI Cross-Border PaymentsLast Updated: September 16, 2025

Definition UPI cross-border payments allow international transactions using the UPI system, enabling Non-Resident Indians (NRIs) or international customers…