# All you need to know about Tokenization

Visa Token Service, a new security technology from Visa, replaces sensitive account information, such as the 16-digit account number with a unique digital identifier called a token. The token allows payments to be processed without exposing actual account details that could potentially be compromised.

## How Visa Token Service Works
The Visa Token Service enables digital payment service providers and financial institutions to offer their customers a safe way to shop online and with mobile devices. Here's how a token is initiated:

### Step 1
Construct a receipt that Visa account with a digital payment service book as a roller receipt containing online information: the primary account number (PAN), security code, and other payment account details.

### Step 2
The payment service provider requests a payment token from Visa for the required payment.

### Step 3
Inside the token request, the payment token is submitted to the consumer's bank.

### Step 4
With the user's information, the consumer's PAN is displayed alongside the payment token.

## How Tokens Are Used
As consumers increasingly shop with connected devices, the need for a seamless and secure digital payment experience becomes crucial. Authorization ensures fraud-free, card-free payments in digital commerce environments.

### Online
Making purchases is becoming commonplace. Tokenization provides online retailers with an informative and secure way of handling payments.

### In-Store
Tokenization provides a secure way for consumers to make in-store payments by simply entering their device near the payment terminal.

### In-App
The ability to pay with Visa is increasingly being embedded in innovative mobile applications that simplify transactions on the go.

1. **Payment initiated**  
   Visa account is not valid for payment orders in In-store or in-app.

2. **Merchant sends token to acquirer**  
   The merchant sends the token to the acquirer for payment service provided in mobile commerce applications as part of an authentication request.

3. **Acquirer routes the token**  
   The acquirer network routes the token to the Visa network to begin processing the transaction.

4. **Visa sends token to card issuer**  
   Visa sends the token to the card issuer, along with the payment card details, for authorization.

5. **Issuer returns token and authorization**  
   The issuer accepts or declines the transaction and sends a response back to Visa.

6. **Transaction completed**  
   The transaction is completed, and authorization is received back to the necessary bank.

For more information visit: www.visa.com/digitalsolutions  
Source: Visa