According to RBI, this will make transactions through credit and debit cards more secure than before, information related to credit and debit cards will not be saved with the merchant at the time of transaction.
There is going to be a big change in the rules related to credit and debit cards from July 1, 2022. From this day a tokenization system will be implemented for card payments, which makes it easy to make repeated purchases or payments from the same website or app. The purpose of the tokenization system is to prevent online banking fraud. If you do not tokenize your card, the debit or credit card saved on the online store will be deleted. However, card tokenization is not mandatory.
Let us tell you that till now on making purchases on any website with credit or debit card, the site keeps complete information of the customer’s card and the customer has to enter CVV. This card is risky for the users. Keeping this in view, the Reserve Bank has directed each to say, “If the token system is replaced by removing all these details, there will be no future risk to the credit or debit card holder. All credit or debit cards will be Tokens have been issued before June 30. The token system will be implemented from July 1. Thereafter the Credit Card or Debit Card Token Merchant will not save the 16-digit credit card number of the credit card holder or the credit card or debit card expiration date and month and CVV-card verification value number.
Also, the system of authentication of transactions is not fully implemented in many parts of the country, hence increasing the risk. There is also the possibility of misuse of the card if it is stolen or lost. It can be even more dangerous if the data falls into the hands of fraudsters. Once these three details are registered in the payment app, a one-time password – OTP – is sent to the credit card holder’s mobile. Payment can be made only after this OTP is generated. The Reserve Bank is of the view that even the above three details can be dangerous to the cardholder if the payment is kept permanently in the app. Therefore, every credit or debit card holder has been instructed to generate a token so that even these three details are not exposed. This token will also have to be generated by the cardholder himself. With this, the cardholder’s sixteen digit number, card expiry date and month and CVV will not be passed on to anyone. Doing so will make paying by card more secure.
how to create token
Creating your own token is very easy. For this credit or debit card holders can generate their own token using their own unique code. This token will become the permanent identity of the cardholder. Thus the card details will not be stored in the system called Card on File in any payment app. Merchants or merchants or online trading companies can permanently hold the credit-debit card holder’s token and use it to process OTP transactions with simple details. For this all you have to do is
- You have to pay to buy things by visiting a shopping website/application.
- At checkout, select your preferred card payment option and enter CVV details.
- Then click on “Secure Your Card” or “Save card as per RBI guidelines”, Tap on Save and Enter OTP.
- The credit or debit card will now be successfully tokenized and secured.