The Reserve Bank of India (RBI) has announced that new credit and debit card tokenization regulations will be put into effect starting on Saturday, October 1, 2022. The new regulations have been put in place to improve customers’ online payment experiences.
Credit and debit cardholders must use certain numbers (tokens) while starting online transactions under RBI’s CoF (card-on-file) tokenization regulations. The major goal of this new modification is to prevent the storage of sensitive information about cardholders during the processing of online payments, including CVV, card number, expiration date, and other sensitive information.
Customers will now need to enter all of their card information each time they want to make an online payment, or they can choose to utilise tokens to ensure secure online transactions, as a result of the RBI’s new credit and debit card guidelines.
The RBI’s regulations on credit and debit card tokenization will take effect on Saturday, October 1, 2022.
Customers will now need to create tokens in order to make payments online. Actual cards will be replaced by the tokens. A one-time password (OTP) will be requested and a token (a unique code) will be generated each time a consumer wants to make an online payment. The advantage of tokenization is that no individual credit card information will be saved on any online platform.
Following are some easy steps to create tokens while initiating online transactions:
- Initiate a card token request via the bank’s website or token requestor’s application.
- Once the token request for a Credit or Debit card is generated, the corresponding bank will receive the request.
- A token will be created after the card holder’s details are verified by the bank through an OTP.
- Use the token everytime you want to shop online. No personal card details will be saved on online websites.
Token debit and credit cards are accepted for all Bharat QR code payments, including those made with mobile credit cards and NFC-enabled POS transactions.
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