The payment experience for cardholders will be enhanced with an additional layer of security through tokenization. According to the RBI, “Tokenization refers to replacing the actual card details with an alternative code called the ‘token’, which must be unique for a combination of card, token applicant (i.e. the entity that accepts the customer’s request for the tokenization of a card and transmits it to the network of the card to issue a corresponding token) and device (hereinafter “identified device”).
This additional time may be used by industry for the following purposes.
(a) facilitate the preparation of all stakeholders to handle tokenized transactions.
(b) the processing of tokenized transactions.
(c) implement one or more alternative mechanisms to manage all post-transaction activities (including chargeback management and settlement) related to guest payment transactions that currently involve or require the storage of CoF data by entities other than card issuers and card networks.
(d) educate the public about the creation of tokens and their use in transactions.
Here are six simple steps to tokenize your card according to an RBI tweet:
According to the RBI tweet: “Want to generate a token for your debit/credit card? Follow these 6 simple steps for tokenization. It’s simple, it’s safe, it’s practical.
Step 1: Start
Visit any e-commerce website or app to make a purchase and start a payment transaction.
Step 2: Choose your card
At checkout, enter details of your debit, credit card previously saved as payment method and enter other details.
Step 3: Secure your card
Select the option “secure your card according to RBI guidelines” or “tokenize your card according to RBI guidelines”
Step 4: Give your consent to create a token
Enter the OTP sent to your mobile phone or email by your bank and complete the transaction.
Step 5: Generate a token
Your token has been generated and saved instead of your actual card details
Step 6: Tokenized
When you visit the same website or app again, the last four digits of your card on file are displayed to help you identify your card to complete the payment. Tokenized!