HomeLatest NewsHow to tokenize your card? Here is a step-by-step guide

How to tokenize your card? Here is a step-by-step guide

From October 1, a new rule will come into effect for online payments through debit and credit cards. A change in credit card and debit card rules, known as tokenisation, has been notified by the Reserve Bank of India. The central bank is reiterating the uses and benefits of tokenizing one’s debit and credit cards and is running an online campaign. The new deadline for debit card and credit card tokenization is September 30.

If you do not follow these new tokenization rules notified by Reserve Bank of India, you may have to spend more time while making online payments. Under these rules, domestic merchants cannot store your card information such as its number and CVV when you make an online payment. RBI has notified these tokenization guidelines to make online payment system more secure and safe

However, one may wonder how credit card and debit card tokenization can be done. The steps are quite simple and RBI has also listed the steps for credit card and debit card tokenization If you have any other questions about the new rules, you can read them here.

Steps to Tokenize Debit Cards, Credit Cards

i Visit any e-commerce or merchant website or application to make a purchase and initiate a payment transaction

ii. During checkout, enter your debit or credit card details. Alternatively, enter your preferred bank debit card or previously saved credit card as payment method and enter other details.

iii. Click on “Secure Your Card” or “Save Card as per RBI Guidelines” option.

iv Enter the OTP sent by your bank on your mobile phone or email and complete the transaction

v. Your token will now be generated and stored instead of your original card details

vi When you visit the same website or mobile app again, the last four digits of your saved card will be displayed to help you identify it as tokenized during other payments.

What is Debit Card, Credit Card Tokenization?

During this time, you will receive notifications from online merchants and banks to ‘tokenize’ your cards to make payments easier. According to the RBI website, “Tokenization refers to replacing the physical card details with an alternative code called “token”, which will be unique to the combination of the card, the token requester (i.e. the entity that receives the request from the customer for tokenisation). A card and an associated the card passes it over the network to issue the token) and the device (hereafter referred to as the “Identified Device”).”

The tokenization system is completely free and non-binding. However, it provides a smooth payment experience while protecting your data. Tokenization applies only to domestic online transactions.

Registration for a tokenization request is done only with explicit consent of the customer through Additional Factor of Authentication (AFA), and not through forced/default/automatic selection of check boxes, radio buttons etc. as per RBI. The customer will also be given the choice to select and limit usage.

read all Latest business news And Latest News here

RELATED ARTICLES

Most Popular