Rules will change for using online debit-credit card from January 1


Token Transaction: Online payment is now normal. People prefer to pay online instead of keeping cash with them. Be it ordering food, shopping or booking a cab, people transact online and save their passwords, debit and credit card details on the same portal. However, along with online banking, there has also been a huge increase in online frauds. Therefore, in order to make online payments more secure, the Reserve Bank of India (RBI) has asked all merchants and payment gateways to delete sensitive customer debit card and credit card details that are saved with them.

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 for carrying out transactions. Banks have also started informing their customers about this. HDFC Bank has informed its customers through SMS that with effect from January 1, 2022, the details saved by the merchants on the merchant website / app will be deleted as per RBI order for the security of the card. It further states that every time to make a payment, enter the complete details of the card or choose the option of token.

Also read: Digital Payment Tips: In case of failure of transactions in UPI, NEFT and IMPS, you will get money back quickly by these methods

The word token means to replace a real card number with an optional code which will be converted into a token. The tokenized card data may be used in place of the original card number for future online purchases as instructed by the card users. A token card is more secure than real card details for making payments and sharing with online merchants. You do not need to provide details like Card Number, Expiry Date, CVV while using the token like it is required for doing Debit/Credit Card transactions.

Also read: UPI Fraud: When you use UPI, it is important to understand these things, otherwise you will get caught in the trap of fraud

How to get tokenized card?

  • You can get the Card Token through Token Requester by placing a request on the Bank’s website or App.
  • Once you place the request on the token request, the merchant will directly send the request to the bank that issued the Credit Card / Visa / MasterCard / Diner / Rupay.
  • The party receiving the token request from the token requester will create a token that is associated with the card, token requester and merchant.
  • Token cards are applicable for NFC enabled POS transactions on mobile credit cards, Bharat QR code based payments online or offline. Also at all possible online and offline merchants.

Is card tokenization secure?
A token card is more secure than real card details for making payments and sharing with online merchants. This initiative is expected to make card transactions more secure and convenient for the users.

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