Insecure online transactions have prompted the Reserve Bank to implement the new rules. Credit card data used to be stored in the merchant’s database to facilitate payment. Card number, CVV and card expiry date are kept like this. But there are security risks here.
There have been incidents in the past where stored data leaked into the public domain. Once such information is leaked, fraudsters can easily get hold of it and lose money. It is for these reasons that the strict intervention of the Reserve Bank.
Card information can no longer be collected by anyone other than the card issuer and related networks. Currently, if anyone has collected such data, it should be removed.
Are the new guidelines confusing you? Don’t know how to tokenize debit-credit cards? The following six steps will help you with this.
Step 1 : Visit any e-commerce / merchant website or mobile app. Buy something, then complete the transaction.
Step 2 : Provide debit or credit card information during check out. Then select your pre-saved card as the payment method of your preferred bank. Then enter other required information.
Step 3 : Then select the option ‘Secure your card as per RBI guidelines’.
Step 4 : Agree to create a token. Enter the OTP sent to you by e-mail or SMS by the bank. Complete the exchange. Generate a token.
Step 5 : Your token is generated and saved instead of your card’s actual details.
Step 6: The last four digits of your saved card number will be displayed if you visit the same website or application again. This helps to identify which card is used when making a payment.
It will also be possible to know with which merchants you have registered or de-registered the token in the future. Suppose you don’t want to continue making payments through any website or application. Or suppose you don’t want to make periodic recurring payments through any website. You can delete the token associated with it. You also have the option of consenting to the desired merchants if your card is changed or replaced. All this ensures additional security.