New debit card, credit card tokenisation rules from July 1; here's how it will impact you
The coming month of July is going to bring changes in the way you use your debit card and credit card. People who make online shopping payments keep their passwords and debit card and credit card secret details saved. However, as the rate of online fraud has increased in recent times it is important to keep these details safe and secure as it can cause huge financial losses. Therefore, in order to make online payments safer and secure, the Reserve Bank of India (RBI) has asked all merchants and payment gateways to remove sensitive customer details of debit card and credit card that are saved on their end. From July 1, online merchants will not be able to store customer's credit and debit card details and card tokenisation rule will come into effect.
From July 2022, when you make the first payment to any merchant, you will need to give your consent with an additional factor of authentication (AFA). Once you do so you will complete the payment by typing in your debit card or credit card CVV and OTP.
The word tokenisation refers to the replacement of an actual card number with an alternative code which will be converted into token. The Tokenised card data can be used in place of an actual card number for future online purchases as instructed by the card user. A tokenised card is safer than the actual card details to make payments and share with the online merchants.
While using tokens there is no need for you to provide details like card number, expiry date, CVV, etc. like it is required while making debit/credit card transactions.
You can get the card token by initiating a request on the bank's website or app via token requestor. Once you make the request on the token requestor, the merchant will send the request directly to
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