ALERT! RBI restricts sharing card details for online payments: What to do now?

If you are enjoying the shopping with the ease of your saved passwords and card details, then this will end soon! In a recent SMS alert by the HDFC Bank to its customers, it is mentioned that, Customers' HDFC Bank card data saved on merchant websites or apps will be removed by merchants with effect from 1st January 2022, as per the RBI regulation for improved card security. You will either need to provide your entire 18-digit card number or you can use tokenisation to pay each time you pay online. The decision is the responsive action post the RBI rule.

Recently the Reserve Bank of India (RBI) announced an important information that no business in the card transaction or payment chain, other than card issuers and card networks should hold the actual card details from January 1, 2022. To complete the online payments, cardholders can even go with the digital tokens. Beyond this deadline, RBI will remove all such data which is already saved. This action is to prevent online frauds. In view of the RBI mandatation, other banks and digital payment accounts such as HSBC India, SBI Card, Paytm, Phonepe, National Payments Corporation of India (NPCI).

What is tokenisation and how will it benefit customers?

Tokenisation means exactly for what purpose we have been used. For example, Metro tokens, the money or information gets stored within a small token which then works as the referral for all. So, in simpler terms with regards to this bank, tokenisation means the replacement of an actual card number with an alternative code which will be converted into token. The Tokenised card data can be used in place of an actual card number for future online purchases as instructed by the card user. A tokenised card is more safer than the actual card details to make payments and share with the online merchants.

How to get tokenised card?

Step 1: You can get the card token by initiating a request on the bank's website or app via token requestor.

Step 2: Once you make the request on the token requestor, the merchant will send the request directly to the bank that issued the credit card / Visa/ Mastercard / Diners / Rupay.

Step 3: The party that receives the token request from the Token Requester will create a token that relates to the card, the token requestor, and the merchant.

Where you can use tokenisation card?

Tokenisation card are applicable to Mobile Credit Card for payments such as to NFC enabled POS transactions, Bharat QR code based payments online or offline. Also, all the possible online and offline merchants.