Credit Debit Card Tokenisation: From July 1, 2022, payment aggregators, payment gateways or merchants will not be able to store debit and credit card data of their customers. After June 30, traders will have to delete the data of the customer’s debit-credit card by taking all the online portals. Earlier this rule was to be applicable from January 1, 2022, but RBI has extended the card tokenization deadline till June 30, 2022. The new rule will now come into effect from July 1. From July 1, the payment aggregator, payment gateway or merchant will have to delete the customer’s card data. RBI has given a moratorium to all payment systems till June 30.
Debit-credit card details have to be entered every time
From July 1, 2022, the customer has to type the 16-digit debit-credit card number, expiry date, card verification value (CVV) every time he makes every transaction for shopping on Amazon or Flipkart or for recharging Netflix, Disney+ Hotstar Will happen.
With the rise in digital usage increasing in the country, more and more people are using online payments to book hotels, shops or cabs. But in the digital world, cybercriminals are waiting to grab the data of the users. In order to provide better security to the people and make online payments secure, the Reserve Bank of India (RBI) has asked all merchants and payment gateways to delete the stored debit and credit card details after June 30.
what does this mean?
After the implementation of RBI’s Card Tokenization Rules, merchants and payment gateways will have to delete the customer’s card data stored on their servers. This means the user has to enter complete card details to make payment on merchant websites. Banks have started informing their customers about these changes.
What is tokenization?
As per the existing rules, the transaction is executed on the basis of 16-digit card number, expiry date of the card, CVV and one-time password or OTP (in some cases transaction PIN also). Tokenization is the ability to replace the actual card number with an alternate code, called a “token”.
How secure is tokenization?
According to RBI, tokenized card transactions are considered secure as the card details are not shared with the merchant during the transaction. In this, the details of the customer’s card cannot be saved. According to RBI, converting the token back to the original card details is known as de-tokenisation. The customer will not have to pay any charge for availing this service.
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