How does tokenization work?
On the first payment the customer enters the card details. The token provider stores the card number in a vault that meets PCI DSS requirements and returns a token, a random reference that means nothing outside that system. The merchant stores the token against the customer. For the next payment the merchant sends the token, the provider looks up the real card number and passes it to the acquirer. Three types are common: PSP tokens, tokens held by an orchestration platform, and network tokens issued by the card schemes.
Why does tokenization matter for conversion and compliance?
Repeat customers do not need to type card details again, which shortens checkout and reduces input errors. As an illustrative example: a customer who buys six times a month enters a card number once instead of six times, and a mistyped digit no longer causes an invalid card decline. On the compliance side, a merchant that only stores tokens keeps most of its systems out of PCI DSS scope.
How do PSP tokens and orchestration tokens compare?
A PSP token ties the saved card to one provider. If that provider declines, has an outage or ends the contract, the merchant cannot reuse the card elsewhere without asking the customer again. A token held at the orchestration level sits above the providers, so routing and cascading can still choose among them for returning customers.
Where does Omno use it?
Omno’s tokenization stores cards at the platform level. Saved cards are offered in the hosted checkout for repeat payments, and routing rules still decide which eligible PSP processes each tokenized payment.