From January 1, 2022, the customers will not be able to save their debit or credit card details on any e-commerce platform.
New Delhi: The new guidelines issued by the RBI with regard to the online card transactions will come into effect from January 1. And from this day, the e-commerce companies such as Amazon and Flipkart or online delivery aggregators such as Zomato and Swiggy will not be able to save the card information on their platforms
The RBI guidelines also stated that the customers carrying out any online transactions on any e-commerce platform will need to enter their debit or credit card details every time they do transactions. However, some of the customers can avoid the hassle and choose to provide consent to the platforms to tokenise their cards.
It must be noted that the RBI had in March 2020 issued guidelines which restricted merchants from saving customers’ card details in order to boost security. Moreover, in September this year, the RBI had enhanced the guidelines on card tokenisation services in order to improve the safety and security. The RBI had said that the tokenisation of card data shall be done with explicit customer consent requiring Additional Factor of Authentication (AFA)
New Credit-Debit Card Transactions Rules: 10 Things Customers Must Know
- From January 1, 2022, the customers will not be able to save their debit or credit card details on any e-commerce platform.
- They, however, will have to re-enter card details every time they do any online transaction.
- The customers can avoid this hassle by providing their consent to e-commerce companies to “tokenise” their cards. The e-commerce platforms after receiving a customer’s consent will ask the card network to encrypt details with additional factor authentication as needed.
- After the e-commerce platform receives the encrypted details, then the customers can save that card for future transactions.
- Right now, only Mastercard and Visa-provided cards can be tokenised by most leading e-commerce platforms.
- The RBI In its fresh guidelines stated that the norms must be adhered to for both credit and debit cards.
- The RBI further stated that the new guidelines are not applicable to international transactions but only for domestic cards and transactions.
- The customers must know that they will not have to pay any extra charge for tokenisation of cards.
- Moreover, the RBI said that the e-commerce platforms will show the last four digits of tokenised cards for customers to easily identify them.
- However, the tokenisation of cards is not mandatory for all transactions. They can choose to tokenise their cards to carry out a quick transaction.
