ALERT! Debit card, credit card rules CHANGE from Jan 1, 2022; Online shopping affected
RBI has asked all merchants to remove sensitive details found on a user's debit card and credit card.
The new year is going to bring along massive changes in the way you use your debit card and credit card. People who make online shopping payments keep their passwords and debit card and credit card secret details saved. However, as the rate of online fraud has increased in recent times it is important to keep these details safe and secure as it can cause huge financial losses. Therefore, in order to make online payments safer and secure, the Reserve Bank of India (RBI) has asked all merchants and payment gateways to remove sensitive customer details of debit card and credit card that are saved on their end. That means your next shopping experience in 2022, will change and you will have to do something new every time.
As stated, the new debit card and credit card rules will come into effect from January 1, 2022. RBI has asked merchants and payment gateways to use encrypted tokens to carry out all transactions. Here is all you need to know:
What are the new credit, debit card rules about and what you will have to do?
As per the new rules, from January 2022, when you make the first payment to any merchant, you will need to give your consent with an additional factor of authentication (AFA). Once you do so you will complete the payment by typing in your debit card or credit card CVV and OTP.
What is tokenisation of credit cards and debit cards?
The word tokenisation refers to 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 safer than the actual card details to make payments and share with the online merchants.
While using tokens there is no need for you to provide details like card number, expiry date, CVV, etc. like it is required while making debit/credit card transactions.
How to get tokenised card?
You can get the card token by initiating a request on the bank's website or app via token requestor. 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. 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.
It can be noted that 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.
Is card tokenisation secure?
A tokenised card is safer than the actual card details to make payments and share with the online merchants. The initiative is expected to make card transactions more safe, secure and convenient for the users.
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