New Delhi: From October 1, the rules for online payment of debit and credit cards will change. The Reserve Bank of India (RBI) has made it mandatory to replace all credit and debit card data used in online, point-of-sale, and in-app transactions with tokens by September 30 this year. Earlier the deadline was extended for three months starting from July. It will be more secure to make debit and credit payments through tokens. This is expected to increase digital payments as well.
According to RBI, there will be no need to save any kind of debit or credit card details on any online platform in the tokenization system at present. Instead, an optional code named a “token” will be given. A tokenized card transaction is considered secure, as the actual card details are not shared with any platform during the processing of the transaction.
There is still a risk of data theft
Currently, for online card transactions on online merchant platforms, card data such as card numbers and the expiry date has to be saved. Merchants do so by referring to the convenience of the customers to transact in the future. Next time you make a purchase on the same site, all you need to do is enter the CVV and then OTP is generated by the bank to make the purchase. However, it increases the risk of card data theft or misuse by multiple entities in this manner.
Now you will give complete information about the card
After the implementation of the new rule, the customer will have to give full details of his card while making online purchases. Once the customers start buying an item, the merchant will initiate tokenization and ask for consent to tokenize the card. Once consent is given, the merchant card will send the request to the network. This will generate a token number for each card. Which can be saved online or on merchant platforms for future purchases.
Token will be generated like this
- Visit any e-commerce website to buy the product.
- Select the preferred card option as the payment process.
- Enter all the required information carefully.
- Tap on the option ‘Secure your card as per RBI guidelines’ on the website and store it as per RBI guidelines.
- You will receive a One-Time Password (OTP).
- Enter the OTP on the bank page and the card details will be sent for token generation and transaction authorization.
- The token will be sent to the merchant and it will be saved instead of personal card details.
- The next time you visit the same e-commerce platform or merchant website, the last four numbers of the saved card will be displayed. This will show whether the debit card or credit card has been tokenized.
