Enter card number, CVV every time you pay online from July or follow this

0

The Reserve Bank of India said the payment ecosystem in India is “by and large” ready to adopt the tokenization rule from July 1. The comment came from the RBI earlier this month, after it extended the deadline for tokenization of debit card and credit cards from January 1 to July 1. After the nationwide credit and debit card tokenization rule is implemented, domestic e-commerce merchants will no longer be allowed to store customer data on their servers. This is done to protect customer privacy, the RBI said.

What is Debit Card, Credit Card Tokenization?

According to the RBI website, “Tokenization refers to replacing the actual card details with an alternative code called a ‘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 referred to as “identified device”)”.

This token contains no directly accessible personal information and is constantly changing, making it the most secure method for making payments, India’s largest public sector bank, State Bank of India, says on its website. Once credit and debit card tokenization is completed, payment aggregators, wallets and online merchants will not be able to store your card data, including debit or credit card number, CVV, card expiration date and other sensitive information. Banks and online merchants have already sent alerts to their customers to tokenize debit or credit cards.

What happens if credit and debit card tokenization is not completed by July 1?

At that time, you would have received notifications from online merchants and banks to “tokenize” your cards in order to make payments smoothly. However, the process is not mandatory. If you do not tokenize your card by July 1, you will be required to re-enter all card details when making any online purchases. Indeed, the existing data will be deleted from the server.

Benefits of card tokenization

I. Tokenization of debit and credit cards will ensure more secure online transactions as no customer data will be stored on the merchant’s website or mobile app. A tokenized card transaction is considered more secure as the actual card details are not shared/stored with merchants to complete the transaction, the SBI website states.

ii. A customer will benefit from faster and smoother payments as card details including 16 digit card number, name on card and card expiry date will not be required to be entered with cards token. However, CVV and OTP authentication requirements will continue to be in place as an additional layer of protection for customers, including those who have provided consent for debit and credit card tokenization.

Read all the latest news, breaking news, watch the best videos and live TV here.

Share.

About Author

Comments are closed.