Edit: Explaining like you 5:
The server multiplies the credit card number by another (secret) number and stores the answer and deletes the credit card number.
When the server needs the real credit card number again it takes out the secret number and does the division to get the original credit card number.
Only the server (company) knows the secret number so if the server is hacked the hackers will have a difficult time figuring out what the secret number is.
This is an oversimplification, this is how I would explain it to a five year old.
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