The card details in the token, the details of the merchant or online site on which the card is being used, will be sent to the card issuing company. After this, the card issuing company will make the complete details in the form of a code and send it to the merchant.
The Reserve Bank of India has issued a new rule regarding debit and credit cards from October 1. According to this rule, the debit or credit card data will have to be converted into a unique token for online, point of sale and in app transactions. In this new rule, card details will not be served on merchant or online commerce sites. The last date to implement this rule was 30 September. Earlier its deadline was June 30, which was extended to September 30. Due to tokenization, customers will get maximum security related to their card. The possibility of card details being leaked will end.
According to the Reserve Bank, tokenization means converting the original data of a debit or credit card into a code. Here the code itself is being called the token. The card details in this token, the details of the merchant or online site on which the card is being used, will be sent to the card issuing company. After this, the card issuing company will make the complete details in the form of a code and send it to the merchant. This will be done in seconds, so the customer will not have to face unnecessary delays. RBI has given 6 steps for tokenization, whose information is given below.
.@RBI Kehta Hai..
Want to generate a token for your debit/ credit card? Follow these 6 simple steps to tokenisation. It’s simple, it’s safe, it’s convenient.#BeAware #BeSecure#rbikehtahai #StaySafe #Tokenisationhttps://t.co/mKPAIpnAObhttps://t.co/RWS9vBbEZH pic.twitter.com/vTyBBeTCDH— RBI Says (@RBIsays) July 27, 2022
How to tokenize card
- START- Go to any e-commerce merchant website or app from where you want to make purchases. Initiate payment transaction here.
- Select Card – Enter the debit or credit card details already saved during checkout and also provide the rest details.
- Secure the card – Then select ‘RBI Guidelines on Secure Your Card Edge’ or ‘RBI Guidelines on Tokenize Your Card Edge’.
- Agree for the token – OTP will be sent by the bank to your mobile phone or email, enter it and complete the transaction.
- Generate Token – With this your token will be generated and saved. The actual details that you have given will be converted in the form of token.
- Tokenized – Next time you visit the same website or app, the last 4 digits of your card will be shown. This will help you identify the card. This is tokenization.
