How To Tokenise Your Debit or Credit card?

Merchants and payment aggregators are required to remove credit and debit card information and replace it with tokens in accordance with the RBI's tokenization guidelines. The timeframe for tokenization has been extended by the RBI to September 30, 2022, according to recent announcements.

The RBI describes tokenisation as "the replacement of actual card details with an alternate code called the 'token', which will be unique for a combination of card, token requestor and device."

The central bank created new rules to safeguard customers in response to unsafe online practices. For ease of payment, credit card information such as the number, CVV, and the expiration date is frequently maintained on the databases of the merchants.

Debit or credit card information cannot be stored by any entity other than card issuers or networks, according to guidelines issued by the RBI. It's necessary to delete any already-stored data. With tokenization, the transactions on your debit and credit cards will be safer and more convenient. Additionally, it would improve the online shopping experience for cardholders by safeguarding cardholder information from online criminals.

Here's how you can Tokenise Your Debit or Credit card:

Step 1: Visit any online application/website to purchase something and start a payment transaction.

Step 2: During check-out, enter the details of your debit or credit card.

Step 3: Select the option "secure your card as per RBI guidelines" or "tokenise your card as per RBI guidelines".

Step 4: Give your approval to create a token. Enter the OTP received on email or registered mobile number. Make a token.

Step 5: Your token has been generated and saved instead of the actual details of your card.

The card issuer will ensure customers can easily report the loss of an identified device or any other event that may expose their tokens to unauthorised usage. The card network will put in place a system to immediately de-activate such tokens and associated keys in case of their exposure to unauthorised usage.