Entering credit or debit card details including the 16 digit number and CVV, before waiting for an OTT can be a time consuming process, which still doesn’t guarantee safety. More than 3000 cases of credit and debit card fraud, where crybercrooks access card details, were reported from India in 2022, which is 20 per cent higher than the year before. Following this RBI has stepped in with updated safety rules for credit and debit cards, where tokens will replace other information saved for online payments.
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Hassle free and secure
The new norms will be implemented from October 1 this year, and will protect consumers in case a merchant website is hacked. A unique token will be used for digital transactions, while customer details will only be secured in the bank’s database. The hassle free process of tokenisation can be completed in a few steps.
After opting for card payments while checking out of a website, consumers need to select an option for securing a card or saving the card as per RBI guidelines. Following this they’ll get an OTT after entering the CVV number, and this code is used for generating a token in real-time. With this the unique token will be saved for the specific site instead of customer details, to be used in the future.
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What will this change?
With this customers won’t have to look at the physical card for making payments on every new platform. Even if a phone is misplaced or stolen, the card details won’t be revealed since only the token will be visible. Likelihood of transactions that look dubious will be lower, since the tokens are considered secure.
The deadline for tokenisation was previously set at June 30, 2022, but was later extended to September 30. The new system which will make e-payments safer and hassle free, won’t be charged. The tokens also known as subscription IDs are also used by Apple Pay.
