[ad_1]
RBI has asked all merchants to remove any sensitive details found on a user’s debit card and credit card.
Online payment is now the new normal. People prefer to make payments online rather than carrying money with them. Whether ordering food, shopping, or booking taxis, people transact online and keep their passwords and their debit and credit card details saved for the same. However, along with online banking, the rate of online fraud has also increased significantly. Therefore, in order to make online payments more safe and secure, the Reserve Bank of India (RBI) has requested all merchants and payment gateways to remove sensitive customer details on debit cards and credit cards. which are recorded on their side.
The new debit and credit card rules will take effect on January 1, 2022, and RBI has also instructed merchants and payment gateways to use crypto tokens to complete transactions. Banks have also started to educate their customers on this subject. HDFC Bank has informed its customers via SMS that information recorded on the merchant’s website / app will be deleted by merchants in accordance with the RBI Mandate for Stronger Card Security effective January 1, 2022. card details or opt for tokenization.
According to the new rules, from January 2022, when you make the first payment to a merchant, you will have to give your consent with an additional authentication factor (AFA). Once you’ve done that, you’ll complete the payment by entering your card’s CVV and OTP.
You must be wondering what is tokenization?
The word tokenization refers to replacing an actual card number with an alternate code that will be converted into a token. Tokenized card data may be used in place of an actual card number for future online purchases, as instructed by the card user. A tokenized card is more secure than the actual card details for making payments and sharing with online merchants.
When using tokens, you don’t need to provide details like card number, expiration date, CVV, etc. as required during debit / credit card transactions.
How to get a tokenized card?
Step 1: You can get the card token by making a request on the bank’s website or app through the token requester.
Step 2: Once you make the request on the token requester, the merchant will send the request directly to the bank that issued the credit card / Visa / Mastercard / Diners / Rupay.
Step 3: The party that receives the token request from the token requester will create a token that relates to the card, token requester, and merchant.
It can be noted that the tokenization card is applicable to the mobile credit card for payments such as NFC-enabled POS transactions, online or offline Bharat QR code based payments. Also, all possible online and offline merchants.
Is the tokenization of the card secure?
A tokenized card is more secure than the actual card details for making payments and sharing with online merchants. The initiative is expected to make card transactions safer, more secure and convenient for users.
[ad_2]
