Google has advised consumers that it would no longer be allowed to keep customer card data such as card number and expiry date in the present format as of January 1, 2022.
Google has advised consumers that it would no longer be allowed to keep customer card data such as card number and expiry date in the present format as of January 1, 2022. Because Google must follow the Reserve Bank of India’s (RBI) requirements for Payment Aggregators (PA) and Payment Gateways, this is the case (PG). Because many users have a card number stored to their Google Work or Google Play accounts to make monthly payments for subscription-based services, the move is important.
The change is due to new card storage restrictions from the Reserve Bank of India (RBI). From January 1, 2022, the Reserve Bank of India (RBI) has mandated that no business or merchant, excluding card issuers and card networks, hold card data — or card-on-file (CoF). At the same time, it has expanded the tokenization of CoF by card issuers.
“As of January 1, 2022, no organisation in the card transaction or payment chain shall hold real card data other than card issuers and card networks.” The RBI said in a circular that “any such data already retained would be erased.” Many customers have had their monthly recurring payments denied or terminated as a result of the new conditions.
Many firms have also been confused by the requirements. This might cause additional issues for customers who had their credit card information stored in order to pay for their Google One membership or their Google Cloud work accounts.
Google, on the other hand, has said that they may record “card data in a way that conforms with RBI requirements and keeps sensitive card details private” with the user’s permission.
According to Google, users will have to re-enter their card information and make at least one purchase or manual payment before the end of 2021 in order to continue using the same Visa or Mastercard issued debit or credit card to make payments beyond December 31, 2021.
“If you don’t,” the business stated, “your card will no longer display in your account, and you’ll have to re-enter your card data to use it again.”
“We won’t save your card information beyond December 31, 2021, since card storage as per the new format isn’t enabled for these card networks yet,” the business said for RuPay, American Express, Discover, or Diners Card customers. Every time you make a manual payment after January 1, 2022, you must supply card information.”
How tokens, rather than credit card numbers, might make purchases safer
Tokenisation is the process of replacing real card data with an alternative code known as a “token,” which is unique for each card, token requestor, and device. By exchanging card data such as card numbers and CVV, it minimises the number of scams that occur. The token is used for contactless card transactions, fast response, and code payments at point-of-sale terminals.
PhonePe recently announced the debut of its SafeCard, a tokenisation solution for online debit and credit card transactions, in conformity with RBI requirements. By enabling payment providers to store cards using tokens, PhonePe’s SafeCard will make recurring payments simple and secure. All major card networks, including Mastercard, Rupay, and Visa, are supported by this solution.
