As RBI's fresh guidelines concerning tokenization of different card payments have been announced early this week, the card transactions both debit and credit card will be likely rendered more safe as well as the move is aimed at boosting digital payments drive.
Tokenisation is the process involving substitution of original card details such as card number, expiry date, CVV etc with an alternate unique code referred as the token issued by the bank in 16 digits. This token shall be unique considering the combination of token requestor, card and identified device, and aims to enhance security and safety of the payment system.
Due to the increasing incidence of online financial frauds, not so tech-savvy and average Indian consumers as it is refrain from providing or saving their crucial and confidential card details on the e-commerce site or any device. But with the new tokenization rule from the RBI, you may soon be able to make use of bank-issued token as against card details to carry out any transaction.
Further as per a report, the move will be especially advantageous for international travellers such as those travelling to Thailand as this island-country is host to skimming syndicates who resort to skimming card details at some of the prominent places including eateries. The tokenization will also go a long way in securing card transactions of citizens who happen to engage in buying niche goods over international websites that do not have stringent security rules when compared to Indian websites that mostly go with the mandated 2-way authentication.
So, with the token that shall be provided at no extra cost to the requestor, the actual card details of the card holder will be masked giving him or her a confidence to carry out transaction without the fear of any kind of theft.