Credit and debit card tokenization has come into effect from October 1.
After tokenization, the confidential information of the customers card will be protected.
Earlier, the card details of the customers were saved on online sites.
New Delhi. You must have heard about credit and debit card tokenization. It has come into force across the country from 1 October. But do you know what are its important benefits? This initiative of RBI will help the card holders to keep their data safe. Its purpose is to provide more security to the customer while making online transactions and thereafter.
In fact, due to card tokenization, mobile apps, merchants, payment aggregators will not be able to save your debit or credit card related information like CVV code or expiry date etc. Let us know what are the benefits of card tokenization and the whole process related to it. After all, how earlier our card data was compromised but now it will not happen.
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Know what is tokenization?
Replacing credit or debit card details with a unique alternate code is called tokenization. After the assignment of this code, there will be no need to enter the details like number, CVV and expiry date every time while doing a transaction with the card. Also, the website from which you are shopping and even if its data gets leaked, your personal information will not be compromised. Because your data is not saved on that company’s server or site.
Why was customer card data insecure earlier?
Prior to the introduction of this process, the cardholder’s data was saved on mobile apps, online shopping sites and websites of aggregators and in the event of data leak from these sites, there was a risk of customers’ confidential information falling into the wrong hands, leading to cybercrime. The apprehension was increasing. But after the introduction of the card tokenization process, its possibility is almost over.
Customer’s payment experience will improve
On this step taken for the safety of the customers, the Reserve Bank says that it will be a more secure way to make payment through credit and debit cards, in which the actual details of your card will not be given to the merchant. This data and token will be stored only with the authorized card network. The token requester will not be able to save your PAN and other card details.
Tags: credit card, digital payment, RBI
FIRST PUBLISHED : November 07, 2022, 12:02 IST