The Reserve Bank of India (RBI) has announced new rules for debit and credit card holders from October 1. Under these rules, the users are required to tokenise their debit and credit cards. The last date to tokenise your cards is September 30.
But what actually is tokenisation? Here’s all you need to know about it.
What is tokenisation of Debit and Credit cards?
As per the RBI, tokenisation refers to the replacement of actual card details with an alternate code called the token.
What is the benefit of tokenisation?
Since the merchant is not given access to the actual card information while completing the transaction, tokenized card transactions are perceived to be safer.
Will the merchant have access to your personal information after tokenisation?
The merchants can’t store information like CVV and the number while making a transaction. RBI considers tokenisation as the more secure and safest online payment system.
How can the tokenisation be carried out?
By submitting a request through the token requestor’s app, the cardholder can have their card tokenized. The token requestor will send the request to the card network, and with the card issuer’s approval, the card network will issue a token corresponding to the combination of the card, the token requestor, and the device.
How to tokenise your card?
Step 1: Visit the merchant’s website or app and initiate a transaction.
Step 2: Select the credit or debit card and enter the CVV details.
Step 3: Then an option will pop up-either- Secure your card or Save card as per RBI guidelines. Tick-mark the check box.
Step 4: After that, you will receive the OTP on your registered mobile number.
Step 5: Now, the tokenisation process is done.
Can you de-tokenise the card?
Yes, you can convert the token back to actual card details. This is known as de-tokenisation.
What are the charges that the customer needs to pay for availing of this service?
The customer need not pay any charges for availing of this service.
How is tokenisation different from Credit and Debit cards?
The 16-digit card number will be replaced with a token that is created by the card network and sent back to the retailer. The retailer will keep a record of this token for the next transactions. To continue with the approval process, they must enter their CVV and OTP.