From October 1, a new set of rule will come into effect for online payments through debit and credit cards. The credit card and debit card rule change, known as tokenisation, has been notified by the Reserve Bank of India. The central bank has been reiterating the use and perks of tokenising one’s debit and credit cards and has been running an online campaign. The new deadline for debit card and credit card tokenisation is September 30.
If you do not follow this new tokenisation rules notified by the Reserve Bank of India, you may have to give more time while making online payments. Under these rules, domestic merchants cannot store your card information like its number and CVV when you make an online payment. The RBI has notified these tokenisation guidelines to make the online payment system more secured and safe
However, one may wonder how to do credit card and debit card tokenisation. The steps are pretty easy and the RBI has also listed steps to to credit card and debit card tokenisation. If you have any further queries about the new rules, you can read them here.
Steps to Tokenise Debit Card, Credit Card
i. Go to any e-commerce or merchant website or application to make a purchase and start payment transaction
ii. During checkout, enter details of your debit or credit card. Alternatively, enter your preferred bank’s debit card or credit card saved earlier as payment method and enter other details.
iii. Click on the option that says “Secure your card” or “Save card as per RBI guidelines”
iv. Enter the OTP sent by your bank to your mobile phone or email and complete the transaction
v. Your token will be generated and saved now instead your actual card details
vi. When you visit the same website or mobile app again, the last four digit of your saved card will be displayed to help you identify it during other payments as it has been tokenised.
What is Debit Card, Credit Card Tokenisation?
By this time, you would have received notifications from online merchants and banks to ‘tokenise’ your cards to smoothly carry out payments. According to the RBI website, “Tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”).”
The tokenisation system is totally free of charge and is not mandatory as well. However, it does provide smoother payment experience while also securing your data. Tokenisation is only applicable to domestic online transactions.
The registration for a tokenisation request is done only with explicit customer consent through Additional Factor of Authentication (AFA), and not by way of a forced / default / automatic selection of check box, radio button, etc, as per the RBI. The customer will also be given choice of selecting the use case and setting-up of limits.
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