It is a series of procedures at the end of which the confidential data is changed by one-of-a-kind identification characters so that the user’s information wasn’t threatened by any dangers. The base unit is called a token. It appears when the string is broken into small parts. These parts are usually presented by words and units, keywords, phrases along with symbols. During this procedure some pieces, among them the punctuation marks, are not considered.
Furthermore, this process makes it possible to decrease the number of data which the corporation should always keep and use. Nowadays this method is used by firms and enterprises in order to maintain the safety of cards as well as e-commerce transfers at minimal costs.
Commercials have to install encryption systems or to ask for tokenization because according to the PCI, card numbers are forbidden to be saved in the database of a retailer. All in all, tokenization was designed to provide some extra security for data and to make it more complicated for hackers to access cardholder’s personal data.
There is an example:
Michael assumes that tokenization will help him prevent his business from hacker attacks.