The Visa white paper explains how tokenization enhances payment security and efficiency. In the four-party model—issuer, cardholder, acquirer, and merchant—tokens replace sensitive card numbers with randomized credentials and cryptograms. This reduces fraud by 30% in online transactions and increases authorization rates by up to 4.6%. Tokens secure card-not-present (CNP) and card-present (CP) payments, whether through mobile wallets, digital cards, or virtual cards. They also mitigate failed transactions and false declines, improving customer experience and business revenue. Since tokens are device- or merchant-specific, even compromised data remains unusable. By embedding security into every step of the payment journey, tokenization supports seamless, trusted digital commerce worldwide.

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