In order to keep the information of customers safe, the Reserve Bank has changed the rules for the use of credit and debit cards in online transactions, which will be applicable from October 1.
This festive season, if you are planning for online shopping and are going to use debit or credit card for payment, then keep in mind that from October 1st, the way of using debit/credit card is going to change and if you have followed the new rules. Did not keep the information that maybe your payment may get stuck. The Reserve Bank has made it mandatory to convert all credit and debit card data into tokens in online, POS and app transactions by September 30 this year. Earlier this deadline was July but it was extended by 3 months. Now the rules are going to come into effect from October 1.
What is card tokenization
Earlier, the customer had to share his credit and debit card details with the online platform for payment. Online platforms used to keep this information safe with them and use this information for any further transaction. Due to which there was a risk of information theft. To avoid this, the Reserve Bank has made a rule of tokenization. Actually the token will be issued in lieu of your credit and debit card details. When you make an online payment, the merchant will only get this token number and not the credit and debit card information. According to the rules, the code or token number will be different for each transaction and you will have to share this code or token number with the online platform for payment. Tokenization will make the information of customers more secure and incidents of fraud with them will be curbed.
How to Convert Credit and Debit Cards to Tokens
- First shop on any e-commerce website or app and start the payment process.
- Enter your credit or debit card information to make the payment.
- Select the option ‘RBI Guidelines on Tokenize Your Card Edge’ before making the payment.
- Enter the OTP received on the registered mobile number.
- Your token will be generated as soon as you fill the OTP and now instead of your card, this token will be saved on this platform.
