F,rom 1st October 2022, RBI has come up with the tokenisation of  debit and credit cards. For all those people who love to do online shopping and transact online, it is important to know about the tokenisation rule.

Lets first understand what is tokenisation ?

According to RBI,  Tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”).

 

Why should i tokenise my card ?

A tokenised card transaction is safer. Because the actual card details are not shared with the merchant during transaction processing.

In order to enhance the digital payment experience and add an extra layer of security. RBI has made it mandatory for all credit and debit card data used in online, point-of-sale, and in-app transactions to be replaced with unique tokens from 1 October.

Tokenisation is set to replace sensitive payment credentials, such as : 16-digit plastic card numbers, names, expiry dates, and codes, with a unique alternate number or token. 

Is it mandatory to tokenise card ?

A customer can choose whether or not to let his / her card tokenised. Those who do not wish to create a token can continue to transact as before by entering card details manually.

Tokenisation thus adds an extra layer of security to the consumer’s card credentials as they are not saved by the merchant.

While it is not mandatory to tokenise your card, it is highly recommended as an essential service that every consumer should avail. To protect their data which is otherwise exposed while undertaking a card transaction.

 

How to Tokenise Your Cards?

  • First, you visit an e-commerce or merchant’s website.
  •   Then you select the preferred card options as the payment method and enter all details.
  •   If the website wants you to store the card details, there will be an option to ‘secure your card as per RBI guidelines.’ You must use this option to securely generate a token and store it as per RBI guidelines.
  •   You will receive an OTP on your registered mobile number or email 
  •   Once the OTP is entered on the bank page, the card details are sent for token generation and transaction authorisation.
  •   The generated token is sent back to the merchant. Who then stores the token against the customer identification data, for example, mobile number or email address.
  •   When You visit the same e-commerce or merchant website, the last four digits of the saved card are shown. This helps them to recognize it during the transaction. This means that a customer’s card has been tokenised.
  •   A new token is generated for every merchant website where the card details are required to be stored.

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