Debit card and credit card tokenization rules: More than a month after extending the deadline for tokenization of debit cards and credit cards, the Reserve Bank of India has notified users to complete the process as soon as possible. The central bank reiterated the use and benefits of tokenizing its debit and credit cards and ran an online campaign. The new debit and credit card tokenization date is September 30.
In a recent tweet, the RBI also shared six steps on how to tokenize credit cards and debit cards.
How to tokenize a debit card, a credit card?
“Want to generate a token for your debit/credit card? Follow these 6 simple steps for tokenization. It’s simple, it’s secure, it’s convenient,” RBI said in a tweet dated July 28. , Thursday.
.@RBI Kehta Hai..
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.#To be aware #BeSecure#rbikehtahai #Be careful #Tokenizationhttps://t.co/mKPAIpnAObhttps://t.co/RWS9vBbEZH pic.twitter.com/vTyBBeTCDH
— RBI says (@RBIsays) July 27, 2022
Here are the steps:
I. Access any e-commerce or merchant website or app to make a purchase and start a payment transaction
iii. Click on the option that says “Secure your card” or “Register card according to RBI guidelines”
iv. Enter the OTP sent by your bank to your mobile phone or email and complete the transaction
v. Your token will now be generated and saved instead of your card details
vi. When you visit the same website or mobile app again, the last four digits of your saved card will be displayed to help you identify it during further payments as it has been tokenized.
What is Debit Card, Credit Card Tokenization?
At that time, you would have received notifications from online merchants and banks to “tokenize” your cards in order to make payments smoothly. According to the RBI website, “Tokenization refers to the replacement of the actual card details with an alternative code called the ‘token’, which must be unique for a combination of card, token applicant (i.e. say 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”)”.
The tokenization system is completely free and also not mandatory. However, it offers a smoother payment experience while securing your data. Tokenization only applies to domestic online transactions.
Registration of a tokenization request is only done with the explicit consent of the customer via an additional authentication factor (AFA), and not by means of a forced / default / automatic selection of checkboxes, radio buttons , etc., in accordance with the RBI. The customer will also have the choice to select the use case and set limits.
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