Tokenization allows you to keep returning customer's credit cards "on file" for future transactions while keeping customer's sensitive card information secure and safe. This allows you to create secure customer profiles so customers can conveniently pay for future e-commerce transactions, and so that your business to setup customized billing systems such as managed and recurring payments.
When a transaction is processed, a card token is created as an identifier and the card information is stored in our secure servers. The token can then be safely stored in your local database as it is an identifier for the stored card and not an encrypted credit card number.
When you are ready to reuse the credit number for a new transaction, you send the token instead of the credit card number along with the rest of the transaction information. The credit card that was originally billed is retrieved from our secure server and used for the new transaction.