Tokenised card payments: 5 things to know

1.In tokenised card payments, the sensitive card information is replaced with a unique, random set of characters, called a ‘token'.
2.The actual card information is not used or stored during transactions.
3.Even if hackers gain access to the token, they cannot use it to make fraudulent purchases.
4.The Card data is stored on a highly secure server, separate from the merchant’s network, reducing the risk of data breaches at the merchant level.
5.Tokens are often valid for a specific transaction or merchant, making them useless if intercepted.


Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.