New Delhi, Dec, 22: Making payments via the internet has become the new norm. People prefer to make online payments rather than carry cash in their pockets. People undertake online transactions for a variety of reasons, including ordering food, shopping, and booking cabs, and they preserve their passwords, debit card, and credit card information. However, along with the rise in internet banking, the rate of online fraud has skyrocketed. As a result, the Reserve Bank of India (RBI) has instructed all merchants and payment gateways to erase sensitive customer information from debit and credit cards that is saved on their end in order to make online payments safer and secure.
The new debit and credit card rules will take effect on January 1, 2022, and the RBI has requested retailers and payment gateways to carry out transactions using encrypted tokens. Banks have begun to alert their consumers about the situation. Customers of HDFC Bank have been notified through SMS that details maintained on merchant websites/apps will be destroyed by merchants as of January 1, 2022, in accordance with the RBI regulation for better card security. It went on to say that if you want to pay each time, you can either input your complete card number or opt for tokenisation.
According to the new laws, beginning in January 2022, when you make your first payment to any merchant, you will be required to provide an additional element of verification (AFA). After that, you’ll finish the payment by entering your card’s CVV and OTP.
Tokenisation is the process of replacing an actual card number with a different code that will be converted into a token. For future online purchases, the tokenised card data can be used in place of an actual card number, as directed by the card user. Tokenised cards are safer to use to make payments and share with internet businesses than actual card numbers.
When utilising tokens, you do not need to supply information such as your card number, expiration date, CVV, or other information that is necessary when using a debit or credit card.
How to get tokenised card?
Step 1: You can obtain the card token by using the token requestor on the bank’s website or app.
Step 2: The merchant will send the request immediately to the bank that issued the credit card / Visa/ Mastercard / Diners / Rupay when you submit the request on the token requestor.
Step 3: The party that receives the token request from the Token Requester will generate a token that is associated with the card, the token requestor, and the merchant.
It should be mentioned that tokenisation cards are applicable to Mobile Credit Cards for payments such as NFC enabled POS transactions, Bharat QR code based online or offline payments. Also included are all potential online and offline merchants.
Source: zee news