Bank Card Tokenization: Paying online is a regular practice as now people prefer to pay online instead of carrying cash with them. Be it ordering food, shopping or booking a cab, people transact online and save their passwords, debit and credit card details on a single portal.
However, with online banking, online fraud has also increased significantly. Therefore, to make online payments more secure, the Reserve Bank of India (RBI) has asked all merchants and payment gateways to delete sensitive details of customers’ debit cards and credit cards that they have saved.
The new debit card and credit card rules will come into effect from January 1, 2022, and RBI has also asked merchants and payment gateways to use encrypted tokens for transactions. Banks have also started informing their customers about this.
From January 1, 2022, the details saved by the merchants on their website/app will be deleted as per RBI order to protect the bank cards. Customers have to enter full card details every time or they have to choose token option to make payment.
The word token means to replace an actual card number with an alternate code which will be converted into a token. Token card data may be used in place of the actual card number for future online purchases as directed by the card users. A tokenized card is more secure than the actual card details for making payments and sharing them with online merchants. You are not required to provide details like card number, expiry date, CVV, for debit/credit card transactions while using the token.
How to get token card?
- You can obtain the Card Token through the Token Requester by placing a request on the Bank’s website or App.
- Once you request a token requester, the merchant will directly send the request to the bank that issued the Credit Card / Visa / MasterCard.
- The party receiving the token request from the token requester will create a token that belongs to the card, the token requester and the merchant.
- Token cards are applicable on NFC-enabled POS transactions, Bharat QR code-based payments online or offline payments on mobile credit cards. As well as at all possible online and offline merchants.
Is card tokenization secure?
A tokenized card is more secure than the actual card details for making payments and sharing them with online merchants. The initiative is expected to make card transactions safer and more convenient for the users.
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