Mastercard’s CVC-less online transactions feature is a welcome addition to the Indian payment ecosystem.
New Delhi: Mastercard has launched a new feature that allows its debit and credit cardholders in India to make online transactions without entering the Cardholder Verification Code (CVC). This is a significant step towards making digital payments more secure and convenient, as it eliminates the need to share the CVC, which is a commonly targeted piece of information by fraudsters.
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The new feature is only available for customers who have tokenized their cards on merchant platforms. Tokenization is a process that replaces the card’s physical number with a unique digital identifier, which makes it more difficult for fraudsters to steal and use.
“Mastercard is committed to delivering innovative and secure payment solutions that protect both merchants and consumers. Besides enhanced data security, CVC-less payments on tokenized cards come with benefits that make the online domestic card payment experience smoother and safer.” Anubhav Gupta, senior vice president, South Asia, at Mastercard, said in a statement announcing the same.
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CVC-less Online Transactions: Details
Mastercard’s CVC-less online transaction feature is a welcome addition to the Indian payment ecosystem. It makes it easier and more secure for people to make online purchases, and it is a step in the direction towards a cashless future.
The three-digit number on the back of debit and credit cards is called the Card Verification Code (CVC). The Reserve Bank of India (RBI) has mandated that merchants who adopt tokenized payments only collect the CVC once, when the card is tokenized.
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After the first transaction, cardholders will be able to select their tokenized card from the checkout page, confirm the one-time password (OTP), and complete the transaction without entering the CVC. According to Mastercard, several e-commerce players have already adopted CVC-less payments, as per Zee Business.
“By eliminating the need for CVC, merchants can expect benefits like higher authorization rates, reduced checkout abandonment, and an enhanced customer payment experience,” Mastercard said in its press release.
Mastercard CVC-less Transactions: How To Use
Here are the steps on how to tokenize your credit card:
- Enter your card details on the merchant platform.
- Choose to save your card details for future transactions.
- Enter the OTP sent to your mobile phone to finalize the tokenization process.
Benefits Of Card Tokenization
- Token expiry: Tokens have a limited lifespan, after which they expire. This helps prevent fraudsters from using stolen tokens to make unauthorized transactions.
- Dynamic cryptogram: A dynamic cryptogram is a randomly generated code that is used to encrypt sensitive data. This helps to protect sensitive data from unauthorized access.
- Authenticated user identity check: Token-based transactions can be authenticated using OTP or additional factor authentication (AFA). This helps to ensure that only authorized users can complete transactions.
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