BackHave you tokenised your credit, debit card? Deadline next month
The deadline for credit, debit card tokenisation was extended by three months starting July
PremiumThe Reserve Bank of India (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 by September 30 this year. The deadline was extended by three months starting July,
Currently, many entities, including merchants, involved in an online card transaction chain store card data like card number, expiry date, etc. [Card-on-File (CoF)] citing cardholder convenience and comfort for undertaking transactions in future.
What is tokenisation?
As per the RBI, tokenisation refers to the replacement of actual card details with an alternate code called the "token".
Benefit of tokenisation?
A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during the processing of the transaction.
Is tokenisation of a card mandatory for a customer?
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 at the time of undertaking the transaction.
How can the tokenisation be carried?
-The cardholder can get the card tokenised by initiating a request on the app provided by the token requestor.
The token requestor will forward the request to the card network which, with the consent of the card issuer, will issue a token corresponding to the combination of the card, the token requestor, and the device.
As per the central bank, about 19.5 crore tokens have been created till June. Opting for CoFT (i.e., creating tokens) is voluntary for the cardholders. Those who do not wish to create a token can continue to transact as before by entering card details manually at the time of undertaking the transaction (commonly referred to as "guest checkout transaction").
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