Card Tokenization The rule of tokenization is being implemented in credit and debit cards from today. In such a situation, it is very important for you to know what this tokenization is and what things are going to change because of it.
Card Tokenization: We all use Credit Card and Debit Card for our everyday small and big work. Whether shopping online or paying on an app or point of sale, debit and credit cards are used indiscriminately. But do you know that from today there is going to be a big change in the rules of debit and credit cards.
Starting today, you will need a token to make an online payment with a credit or debit card. Why has this been done and what is the reason for bringing this rule by the Reserve Bank, we tell you. Actually, card tokenization has been brought to make online transactions secure. It has been announced by RBI. The objective is to keep the consumer’s financial information secure and free from fraud while shopping online. Information about all the aspects related to it is being given here.
What is tokenization
Options like net banking, credit/debit card, mobile wallet, UPI have made the transaction very easy. However, due to the huge boom in online shopping, there has also been an increase in the cases of data security breaches. The Reserve Bank of India has taken several measures over the years to tackle this cyber security risk. Tokenization is also one of these.
Tokenization is a process in which your credit or debit card details will be converted into an encrypted code. This will be known as token. Whenever a customer makes a credit or debit card payment at point of sale machines, online or in an app, their card details will be stored as an encrypted token. Each token is a unique combination of the card issuing bank, the user and the device. Merchants and payment companies will only use these tokens for transactions and under no circumstances will they be allowed to save customer information.
What if you don’t create a token
RBI has prohibited payment companies from storing credit card or debit card details of customers. Payment companies will now have to give a code instead of the card. This will act as a token. These tokens will be unique. The same token will work for multiple cards. Even if you do not generate this token, you will still be able to make the payment, but you will have to enter the card details afresh every time for payment.
Why was this rule imposed?
After the implementation of the new rule, for online payment, the token will have to be used instead of using the card directly. This means that after the implementation of the new rules, card payments will become easier. Tokenization will reduce fraud. Currently, payment apps and companies save the details of customers’ credit or debit cards. This is creating fear of customers’ payment details being leaked. The risk of fraud with them also increases. RBI says that the new system of tokens will reduce the cases of fraud.
In many cases, it has been seen that merchants make it mandatory to store the card details of customers for making payments and later cyber frauds steal the information from there. The new rule will eliminate the possibility of leaking them.
How to tokenize your card
The credit/debit card tokenization process is very simple. To make a token, you have to follow these few easy steps.
- Open the e-commerce website or app.
- After selecting the face for purchase in the shopping basket and go to the payment option.
- Enter your debit or credit card details at the time of check out.
- You will get the option of ‘Secure Your Card RBI Guidelines’ or ‘Tokenize Your Card RBI Guidelines’.
- You have to select this option.
- OTP will be sent to your registered mobile number and email.
- After submitting the OTP, you will get the option of Generate Token.
- Upon selecting it, a token will be generated.
- Instead of card details, the token itself will be saved in the database of that website or app.
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