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Glossary

Network Tokenization

Replacing card PANs with scheme-issued tokens to reduce fraud, improve authorization rates, and keep credentials current.

E-Commerce

Network tokenization substitutes the primary account number (PAN) with a token issued by the card network. Tokens can be lifecycle-managed (e.g., card-on-file updates) and are domain-bound for specific merchants or devices.

Benefits include higher approval rates, reduced fraud, and fewer declines when cards are reissued. Tokenization complements processor/device tokens and lowers the scope for PCI DSS by reducing raw PAN exposure.

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Related terms

Keep learning with these nearby definitions.

Acquirer
Bank or payment institution that signs merchants and routes their card transactions into the card networks.
Apple Pay
Mobile wallet by Apple that tokenizes cards for contactless and in-app payments.
Card Fraud
Unauthorized card use or theft of credentials to initiate transactions.
Card Network
Payment network (e.g., Visa/Mastercard) that sets rules and routes card transactions between issuers and acquirers.
Network Tokenization