New Credit & Debit Card Rules From October 1. Know How It Will Impact Customers

A token card is safer than real card details to make payments. You don't need to provide details like card number, expiry date, CVV, such as debit/credit card transactions when using tokens.

Merchants can no longer store full card number, CVV and expiry date, and any other sensitive information related to cards.

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New Delhi: If you use debit and credit cards for online transactions, then it’s time to take note of the Reserve Bank of India (RBI) rule that will get implemented in October. The new rule makes it mandatory for all credit and debit card data used in online, point-of-sale, and in-app transactions to be replaced with tokens by September 30 this year. Earlier, the deadline was extended by three months starting in July. This means that the full card number, CVV and expiry date, and any other sensitive information related to cards cannot be stored by merchants for processing online transactions. 

What is Tokenisation?

The word token means replacing a real card number with an optional code that will be converted into a token. Token card data can be used in place of the actual card number for future online purchases as directed by card users. A token card is safer than real card details to make payments and share with online merchants. You don't need to provide details like card number, expiry date, CVV, such as debit/credit card transactions when using tokens.

How It Will Impact Customers?

The details saved by the merchants on their website/app will be deleted as per the RBI order for the security of the bank cards. Customers will have to enter the full details of the card every time or they have to choose the token option to make a payment. This means a shopper will have to give their entire card details when they shop for something.

Once customers start purchasing an item, the merchant will initiate tokenisation and ask for consent to tokenise the card. Once the consent is received, the merchant will send the request to the card network.

The card network will create a token, which will act as a proxy to the 16-digit card number and send it back to the merchant. The merchant will save this token for future transactions. Now, they will be required to enter CVV and OTP like before to give approval.

Those who do not wish to create a token can continue to transact as before by entering card details manually at the time of undertaking the transaction.

How To Get A Token Card?

You can get the card token by giving a request on the bank's website or app through a token requester.

Once you request a token requester, the merchant will send the request directly to the bank that issued the credit card/visa/MasterCard.

The party that receives the token request from the token requester will create a token that belongs to the card, token requestor, and merchant.

Token cards apply to NFC-enabled POS transactions on mobile credit cards, Bharat QR code-based payments online or offline payments. As well as on all possible online and offline merchants.