Tokenization

Replacing raw card numbers with tokens that can be stored and used safely across your systems.

When this matters

You handle stored cards for subscriptions, marketplaces, or wallets.
You are evaluating provider vaults vs network tokens vs in-house storage.
You are planning PCI scope and responsibilities.

Operator tips

Clarify which tokens are provider-vault-only vs portable between partners.
Track lifecycle events (expiry, re-issues) and how each token type handles them.
Balance conversion gains from tokens against operational complexity and lock-in.

How to use this term

Use this definition when you are aligning stakeholders across product, engineering, finance, and operations. Shared vocabulary makes it much easier to argue about tradeoffs without talking past each other.

For deeper context, pair this term with the free assessment and providers/methods directories. They give you a concrete view of how concepts show up in real stacks.