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Substitution of sensitive values with tokens, with mapping stored in a controlled system.

Definition

Tokenization substitutes sensitive data with tokens and stores the mapping in a separate, access-controlled token vault. Unlike encryption, the token may not be mathematically reversible without the vault.

In plain English Substitution of sensitive values with tokens, with mapping stored in a controlled system.

Why this matters

Why it matters: It reduces exposure of sensitive fields in logs and databases, limiting breach impact.

Example

Example: Merchant stores tokenized card reference; processor vault maps token to real PAN.