Online debit card, credit card rules to change from Jan 1, 2022; check how

RBI has asked all merchants to remove all sensitive details found on a user's debit card and credit card.

Debit card and credit card customers have been advised to opt for tokenisation before January 1. (MINT_PRINT)

Making online payment is the new normal now. People prefer making online payments rather than keeping cash with them. May it be ordering food, shopping or booking cabs, people make online transactions and keep their passwords and debit card and credit card details saved for the same. However, along with online banking, the rate of online fraud has also increased hugely. 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 on debit cards and credit cards that is saved on their end.

The new debit card and credit card rules will come into effect from January 1, 2022 and RBI has also asked merchants and payment gateways to use encrypted tokens to carry transactions. Banks have also started informing their customers about the same. HDFC Bank has informed its customers via SMS that details saved on Merchant Website/App will get deleted by the merchants as per the RBI mandate for enhanced card security with effect from January 1, 2022. It further added that to pay each time, enter full card details or opt for tokenisation.

As per the new rules, from January 2022, when you will make the first payment to any merchant, you will need to give him/her your consent with an additional factor of authentication (AFA). Once you do so you will complete the payment by keying in your card's CVV and OTP.

You must be wondering what is tokenisation?

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?

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.

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.