What is a digital credit card number or token? (2024)

FAQs

What is a digital credit card number? ›

Virtual card numbers are randomly generated numbers from your credit card issuer that are linked to your credit card account. They allow you to shop online without giving stores your actual card number.

For example, a credit card number of “1234 5678 9012 3456” could have a token value of “9687 4595 3211 7312.” Partial replacement: Partial replacement tokens are a type of form preserving token in which some values are left unchanged.

A digital credit card number or token is a credit card number that has no value by itself. This token will be the number sent during the transaction, making it more secure because the merchant never receives your real credit card number – avoiding any credit card theft.

Credit card tokenization is a security protocol that protects sensitive data during online transactions. It works by replacing a cardholder's Primary Account Number (PAN) with a unique, randomly generated identifier, referred to as a token. Hence, cardholder data is never exposed during the payment process.

To find the virtual card number, refer to the receipt from the merchant or go to your card issuer website. If neither of these have the last 4 digits you can contact your bank for support.

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.

Digital tokens are either intrinsic or created by software and assigned a certain utility. Examples of intrinsic digital tokens are Bitcoin and Ether. The other type of digital token is asset-backed, which is issued to represent a claim on a redeemable asset, such as legal tender or precious metals.

In general, a token is an object that represents something else, such as another object (either physical or virtual), or an abstract concept as, for example, a gift is sometimes referred to as a token of the giver's esteem for the recipient.

The Digital Token Identifier (DTI) is a global standard for identifying digital tokens, also known as crypto assets, in the EU. It has been established within the International Organization for Standardization (ISO) framework, specifically under ISO 24165. Currently, more than 1800 tokens are supported.

What is an example of a digital payment token? ›

Examples of digital payment tokens are Bitcoins, Ether, Litecoin, Dash, Monero, Ripple and Zcash.

Payment networks like Visa, Rupay, and MasterCard, which serve as Token Service Providers (TSPs), generate the tokens.

A virtual card number is linked to your credit card account, and is a unique set of 16 numbers, CVV and expiration date that's instantly generated for one-time use. You can then use the virtual card number whether you're shopping online or making a purchase over the phone.

Q: What is tokenization? A: Tokenization is the process of replacing a card's primary account number (PAN)—the 16-digit number on the plastic card—with a unique alternate card number, or “token.” Tokens can be used for mobile point-of-sale transactions, in-app purchases or online purchases.

The main difference is in their design. A traditional credit card shows your account number, CVV code and expiration date clearly printed on its front and back. A virtual credit card exists only in digital format, without a physical presence.

A digital card is a copy of your physical bank card that's stored on your phone. Digital cards have the same card number, expiry date, and CVC as your physical bank card. Both can be added to your digital wallet and can be used with Apple Pay or Google Pay.

Major credit card companies like Mastercard, Visa, Capital One, and American Express issue virtual credit card numbers as a way to provide an additional layer of security for online purchases or to limit spend to an account. Virtual credit cards are completely legal and available for mainstream use.

The Pros of Using Virtual Credit Cards

This added security can give you peace of mind when shopping online. Another benefit of virtual credit cards is that they can often be used to create a spending limit. This can be helpful if you're trying to stick to a budget or concerned about unauthorized charges.