RBI Card Tokenization Rule: Convert your Debit-Credit card to token instantly, Know Full Steps Here
Their bank is going to implement the Card Tokenization Rule. For this, there are just two to three days left for the Central Reserve Bank's Card Tokenization.
In order to protect bank customers from financial fraud, the Central Reserve Bank has considered it in many ways in recent times and is bringing some new rules and laws. Their bank is going to implement the Card Tokenization Rule.
For this, there are just two to three days left for the Central Reserve Bank's Card Tokenization Rules. With effect from October 1, 2022, for making online payments through debit and credit cards, you will have to provide a token instead of your card details at the merchant website, point of sale (POS), or whatever gateway you are making the payment. The biggest advantage of card tokenization is that now your card details cannot be saved by any third party, whether it is a merchant website. For this, it will be your responsibility to convert your cards into tokens under this rule and keep your card details safe.
What is RBI's new rule?
The Central Reserve Bank of India (RBI) has made it necessary that no payment aggregator, payment gateway, or merchant can store credit or debit card data of any customer with him from October 1. This means that no payment site or app can store your 16-digit card number and expiry date as data after September 30.
If you also pay by card, you will have to replace your card details with the token. There is some time for this rule to be implemented, so let's first understand card tokenization and this rule.
What is Card Tokenization?
It simply means converting your card details into tokens. When you process card payments anywhere, the merchant platform stores your card details like your card number, your CVV, expiry date, etc. in its database for an easy and fast payment experience. If the data of that website/platform/merchant gets hacked then your data can also be leaked.
That is why RBI has introduced the option of card tokenization. Under this rule, when you make a card payment, the merchant will not be able to save your card details as you have already generated a token for your card. That's where the token will go to the merchant.
How to do Card Tokenization?
After the commencement of the payment, the cardholder has to opt for the tokenization of his card. Thereafter, he shall request the token in his capacity as a Payment Gateway or Merchant Token Requester, after which the Bank shall generate the token to the token requestor with the permission of the Cardholder.
The process of card tokenization will be completed in six easy steps
Initiate your payment transaction after shopping on any e-commerce site, merchant website or point-of-sale.
During checkout, submit the details of your debit or credit card from which you are making the payment and if the card details are already saved on this platform, select the card from which you want to make the payment.
After this, you have to click on the 'secure your card as per RBI guidelines' option' or 'tokenize your card as per RBI guidelines.’
After this OTP will come on your registered mobile phone or email id, after entering it the token of your card will be generated.
Once your card is tokenized, you will be able to make payment by simply sharing the token details on the merchant website instead of the card details.
Now your token is generated and after the transaction process is over this token will be saved with the merchant instead of your card details and your data will be safe.