Tokenization plays a critical role in fortifying online payments and safeguarding a user’s credit card information. Tokenization protects payment data in multiple ways, such as in the safekeeping of sensitive data and cryptographic control, ensuring that an unauthorized party cannot reveal the original PAN (Primary Account Number) associated with a generated token, and more.
The Token Vault
In a tokenized transaction, the merchant never touches the customer’s actual payment details. Instead, when the customer pays the details are sent to the relevant provider’s Token Vault, and returned in the form of a unique “token” identifying the customer to the merchant. The next time the customer buys something from the merchant, the same token is used without the merchant having responsibility over the customer’s data.
Many types of payment providers can operate a token vault, provided they meet the required level of PCI-DSS compliance. PayU is a PCI-DSS Level 1 Certified Processor, allowing us to offer merchants a single, cross-platform tokenization solution. Most PayU merchants use our tokenization technology to reduce PCI scope and risk.