RBI prohibits customers from sharing card details for online payments: Here’s what to do now

New Delhi: If you prefer to shop with the saved password and credit card information feature, it will soon expire! As per the recent SMS advisory by HDFC Bank to its customers, the HDFC Bank card data of the customers kept on merchant websites or apps will be erased by the merchants with effect from January 1, 2022, as per RBI guidelines to enhance the security of the cards. will be given. You can either provide your full 18-digit card number each time you pay online, or you can use tokenization. This decision has been taken in response to the rules of RBI.

With effect from January 1, 2022, no firm in card transactions or payment chain, other than the card issuer and the card network, should hold the original card details, according to the Reserve Bank of India (RBI). Cardholders can also use the digital token to conduct online transactions. If the deadline is not met, RBI will delete all such data which has already been saved. This step is being taken to prevent online fraud. Other bank and digital payment accounts, such as HSBC India, SBI Card, Paytm, PhonePe, and National Payments Corporation of India, have been mandated by the RBI (NPCI).

What is tokenization?

Tokenization refers to the use of our data for a specific purpose. For example, by using Metro Tokens, money or information is saved in a small token that acts as a referral for everyone. To put it another way, token in this case refers to the replacement of an actual card number with an alternate code that will be converted to a token. For future online purchases, the tokenized card data may be used in place of the actual card number as directed by the card user. Tokenized cards are more secure for making payments and sharing with Internet businesses than actual card numbers.

How to get tokenized card?

Step 1: You can get the card token by using the token requester on the Bank’s website or app.

Step 2: When you submit the request on the token requestor, the merchant will immediately send the request to the Credit Card / Visa / MasterCard / Diner / Rupay issuing bank.

Step 3: The party that receives the token requester’s request for the token will create a token that is linked to the card, the token requester and the merchant.

Where can you use the tokenization card?

The tokenization card can be used with mobile credit cards to make payments such as NFC-enabled POS transactions and Bharat QR code-based online or offline payments. Also, all potential online and offline merchants.

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