The Reserve Bank is going to implement new rules related to credit and debit cards from next year to secure online payments made by customers. For this, banks have already started informing their customers. Under this new rule, which is going to be implemented in the name of ‘tokenization’, from now on all the merchant and payment gateway company will delete the data of all the customers stored on their platform and an encrypted token will be used for the transaction. The new rule is going to come into effect from January 1, 2022.
Let us tell you that till now to make any online payment, we had to enter 16 digit card number, expiry date of the card, CVV and then finally OTP. However from now on you will no longer have to do this. For this, whenever you want to make payment, you will get a token from the card network key. This token will be different for each card. Now in such a situation, to make any payment, first you have to give consent for tokenization. It will then send a request for the token to the merchant card network. The big merchant will save your token after the token arrives and from next time you will not have to generate the token. Next time you will be able to do any transaction just through CVV and OTP.
Your card information entered in the token will be fully encrypted. This will reduce the chances of any fraud. Right now when we give the card to the merchant, there is a risk of leaking the information related to the card. Password and CVV are prone to theft. Such a thing will not happen in the token because it contains all this information encrypted or in code. No one will be able to read it. It will be used for payment only. You will not need to remember the 16 digit card number for the transaction. Just have to enter for the first time and from next time onwards it will not happen. Once your information is saved with the merchant, there will be no need to provide any separate information.