Tokenization

Tokenization↗ is the process of replacing sensitive data, like a credit card number, with a non-sensitive, randomly generated placeholder called a token. The token has no exploitable value on its own and can only be mapped back to the real data through a secure, separate lookup system.

Tokenization is widely used in payment processing: a merchant can store and reuse a token to process future transactions without ever holding the actual card number, dramatically shrinking what a breach of their systems could expose.