Cybersecurity Glossary: Terms Explained in Plain English | TecnetOne

What Is Data Tokenization? Definition | TecnetOne Glossary

Written by Tecnet One | Oct 9, 2026, 6:49:29 PM

Tokenization is a technique that replaces sensitive data, such as a credit card number, with a meaningless substitute value called a token. The real data is stored in a separate, secured vault. This lets a merchant process recurring payments without storing card numbers in its own systems, which reduces the scope of its PCI DSS (Payment Card Industry Data Security Standard) assessment.

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