{"id":28338,"date":"2022-07-01T07:19:51","date_gmt":"2022-07-01T07:19:51","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=28338"},"modified":"2022-07-01T07:19:54","modified_gmt":"2022-07-01T07:19:54","slug":"credit-cards-and-debit-cards-tokenisation-rule-from-july-1-2022-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/rbi-regulations\/credit-cards-and-debit-cards-tokenisation-rule-from-july-1-2022-all-you-need-to-know\/","title":{"rendered":"Credit Cards & Debit Cards Tokenisation Rule from July 1, 2022: All You Need To Know"},"content":{"rendered":"\n

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Credit and debit cards offer exciting discounts, exclusive perks, and lightning-fast payments. But have you ever wondered if entering your card details on shopping websites is safe? Not quite. Therefore, the RBI has introduced tokenised payments. <\/p>\n\n\n\n

Here is all you need to know about the RBI tokenisation mandate.<\/p>\n\n\n\n

The need for payment tokenisation<\/strong><\/h2>\n\n\n\n

If you are an avid card user, the chances are that you have your card information stored on your favourite e-commerce portals. During the checkout process, you can auto-fill it with just a click. While this option is convenient, it poses a security risk. In recent years, there have been countless theft attacks on merchant websites. Hackers have stolen sensitive credit card information, jeopardising the security of thousands of customers. <\/p>\n\n\n\n

Concerned about customer data privacy, the RBI has introduced card tokenisation. This new rule of debit and credit card tokenisation is mandatory for domestic purchases and will come into effect from July 1st, 2022. <\/p>\n\n\n\n

But what is card tokenisation, and how does it affect you? Let\u2019s explore. <\/p>\n\n\n\n

What is card tokenisation?<\/strong><\/h2>\n\n\n\n

Tokenised payments are a security measure that has long been on the RBI\u2019s agenda. Under the new credit card tokenisation rules, e-commerce platforms cannot store your card details. These include your card number, name, expiry date, or CVV. Instead, they will only be able to access a \u2018token value\u2019 representing your card. <\/p>\n\n\n\n

This token value is a random number that has your card number mapped to it. Does this sound familiar? This may remind you of the token system you follow in self-service fast-food restaurants. The server only must read your unique token number to give you your order, and they don\u2019t need to know your name or personal details. <\/p>\n\n\n\n

The same is the idea behind the tokenisation of cards by the RBI.<\/p>\n\n\n\n

What does payment tokenisation mean for merchants?<\/strong><\/h2>\n\n\n\n

When you shop through an app or a website, the merchants facilitate the card payments. So, they store your card details after encrypting them through their own security protocol. However, if their security measures are inadequate, your financial details are at risk. Preventing this is the primary motivation behind the RBI tokenisation mandate.<\/p>\n\n\n\n

So, from July 1 onwards, online merchants will have to delete their customers\u2019 debit and credit card information from their records. Instead, this information will be replaced by digital tokens generated as per the RBI\u2019s security guidelines. <\/p>\n\n\n\n

By introducing mandatory credit card tokenisation, the burden of security is now on the payment gateways and credit card providers, not on merchants. Thus, the tokenisation of cards by the RBI benefits both the customers and the merchants.<\/p>\n\n\n\n

What do customers have to do for payment tokenisation?<\/strong><\/h2>\n\n\n\n

The process of tokenising your cards is simple. You just need to consent to an AFA (an additional factor of authentication.) So, the next time you make an online payment using your debit card or credit card, follow these steps: <\/p>\n\n\n\n