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Compliance · Glossary

Tokenization

Tokenization is the replacement of card data with a non-sensitive token that maps back to the real card only inside the processor's vault. Reduces PCI scope, enables saved-card billing, and is required for modern subscription, marketplace, and recurring use cases.

Why this matters to merchants

Tokenizationsits inside the broader system of U.S. payment processing economics that determine a merchant’s effective rate. Most operators encounter this term on their merchant statement without understanding what it controls, which is how the four hidden fees covered by our methodology slip past unnoticed.

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