Credit Card and Debit Card online payment rules are going to change for the customers across the Nation, as RBI has imposed a tokenisation system on card-related payments with effect from July 1. The Reserve Bank of India has implied the new rules to protect the privacy of the card holders, as according to the norms online merchants can no longer save or store the customer data on their storage servers. Sensitive information now that online merchants cannot store are debit or credit card numbers, CVV, expiry date and any other authentic info. After banning merchants from saving card information, RBI has made Card On File or COF tokenisation system mandatory for online domestic purchases. As the Central Bank has made the new system effective from July 1, the merchants had six months to adapt card tokenisation from January 1.
What Is Tokenisation System Implied By RBI On Debit Cards, Credit Cards?
I am assuming that you have received a notification from your online merchant to tokenize your cards to ensure smooth payment transactions for next time. So here is what RBI said, “Tokenisation refers to the replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts a request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”).”
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How You Can Tokenize Your Debit, Credit Cards?
- First go to an online website or application on your mobile, select a product to purchase right now and initiate the payment system.
- on the payment, method page selects the debit or credit card which you want to tokenize and proceed with the CVV.
- Then click either of the options, “Secure your card” or “Save card as per RBI guidelines”.
- After this process, your credit or debit card will be tokenized and the merchants will no longer be able to access your information.
Note– Debit or Credit Card tokenisation is not a mandatory process to execute payments online. Without tokenisation, you will just have to re-enter your card details with every purchase.
