Credit card, debit card tokenization norms will be effective from 1st October. Tokenization is essential for quick and secure transactions between card users.
Debit and Credit Card Tokenization Rules were introduced in 2021 to improve the security of customers using credit and debit cards.
Tokenization Effective October 1! How to use credit and debit card safely?
The RBI had set a deadline of January 1, 2022 to adopt these new rules, which was extended twice to July 1 and September 30 following the request of various companies.
As the deadline for this has passed, tokenization will be effective from tomorrow (October 1).
Tokenization rules allow customers to securely transact online for goods, services, and money without revealing their full card details.
In this way, all customer details are hidden from online companies. Apart from that, even if online companies have already collected customer details, they should also destroy them. This means that nothing like customer name, pin, CVV, validity period should not be stored in debit and credit cards.
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Debit and credit card tokenization process is not mandatory. However, customers can choose whether or not to allow their cards to be tokenized on the online trading platform.
If tokenisation is not done, customers will need to enter their card’s 16-digit number, expiry date and CVV every time they make a purchase.
But once tokenized, the token number can be saved for future use on online shopping platforms like Flipkart, Amazon, Myntra.
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Token number will change for every online company. A token for one online entity cannot be used for another entity. For example a token issued to Amazon cannot be used on Flipcard.
How To Tokenize Debit, Credit Card?
1. Debit and credit card holders can visit any online merchant site, purchase products and initiate payment.
2. Enter credit or debit card details during checkout. Instead you have to select the debit or credit card of the bank you have the account with and save and enter the other details
3. You have to make a choice whether you want to protect yourself as per RBI rule or tokenize as per RBI rule.
4. Complete the transfer by entering the OTP number received on the mobile number and email given in the bank
5. Your token will be generated. It can be saved on the online platform for future exchange. Instead there is no need to post personal details. That means card’s CVV number, Expiry number is not required
6. If you visit the same online shopping site again, the last number of your previously stored debit or credit card will be displayed. With this you can recognize your card and make payments in a secure manner.
Last Updated Sep 30, 2022, 1:17 PM IST