What is Tokenisation and How Does It Work?

Tokenisation is a security technology that replaces sensitive payment data, like a card number, with a unique digital identifier called a token. This token has no intrinsic value outside the payment system, so even if it’s intercepted, it can’t be used fraudulently. Tokenisation is commonly used in online transactions, mobile wallets, and contactless payments to reduce risk and protect consumer data.

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When a card is tokenised, the card network or processor generates a token that represents the original card. During a transaction, the merchant processes the token instead of the actual card number. The payment network then maps the token back to the original card behind the scenes, allowing the payment to be authorised and settled. This ensures that sensitive data never travels through merchant systems, greatly lowering the risk of breaches.

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Monavate integrates tokenisation into its card and payment solutions to provide enhanced security and control. Whether businesses issue physical or virtual cards, Monavate can tokenise card details, enabling secure online and mobile payments while safeguarding financial information. By combining tokenisation with real-time spend controls and reporting, Monavate ensures that payments are not only secure but also transparent and manageable, giving both businesses and individuals peace of mind in the digital payment landscape.

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