Debit Card, Credit Card Rules to Change After 2 Days: How to Tokenise Your Cards And What Are Its Benefits | Explained

Debit Card, Credit Card Rules Latest Update: As per the RBI guidelines, the tokenised card transaction is considered safe and secure as the actual card details are not shared with the merchant during the processing of the transaction.

Written by: India.com Business Desk Edited by: Manmath Nayak

Published: September 28, 2022, 9:35 PM IST

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Once the customer tokenised their cards they will be able to recognise their details on the merchants website using the last 4 four digits of the cards.

Debit Card, Credit Card Rules Latest Update: Just after two days, the rules for online payments for debit and credit cards will change. Notably, the change will come into effect from October 1, 2022. The Reserve Bank of India (RBI) has made it mandatory for all credit and debit card data used in online transactions to be replaced with tokens by September 30 this year. Earlier, the RBI had extended the deadline by three months starting from July. The RBI has been reiterating the use and perks of tokenising one’s debit and credit cards and has been running an online campaign for this. Now, the new deadline for debit card and credit card tokenisation is September 30.

However, if the customers do not follow this new tokenisation rules, then they may have to give more time while making online payments. As part of the new rules, domestic merchants cannot store your card information like its number and CVV when you make an online payment. The card users must note that the RBI has notified these tokenisation guidelines to make the online payment system secure.

What is Debit Card, Credit Card Tokenisation?

As per 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 customers must note that the tokenisation system is totally free of charge and is not mandatory as well. However, it offers smoother payment experience while also securing your data. The card tokenisation is applicable only for domestic online transactions.

What are benefits of tokenisation?

As per the RBI guidelines, the tokenised card transaction is considered safe and secure as the actual card details are not shared with the merchant during the processing of the transaction.

Here’s How to Tokenise Debit Card, Credit Card

• Visit any e-commerce or merchant website or application to make a purchase and start payment transaction
• Then, 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.
• After this, click on the option that says “Secure your card” or “Save card as per RBI guidelines”
• Then, you need to enter the OTP sent by your bank to your mobile phone or email and complete the transaction
• Your token will be generated and saved now instead your actual card details
• 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.