{"id":5245,"date":"2022-01-02T15:01:23","date_gmt":"2022-01-02T09:31:23","guid":{"rendered":"https:\/\/aayushbhaskar.com\/?p=5245"},"modified":"2023-01-06T18:15:20","modified_gmt":"2023-01-06T12:45:20","slug":"tokenization-of-cards-in-india","status":"publish","type":"post","link":"https:\/\/aayushbhaskar.com\/tokenization-of-cards-in-india\/","title":{"rendered":"Tokenization of Cards in India – Explained (RBI Mandate)","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Given security concerns, the Reserve Bank of India(RBI) has proposed some changes in how we use debit\/credit cards while shopping from e-commerce sites.<\/p>\n
Introducing the new process called ‘Tokenization,’ Rbi has said that this process will reinforce the safety and security of the card data while using the cards conveniently like before.<\/p>\n
According to the new digital payments guidelines, RBI has allowed card networks\/aggregators to offer tokenization services as Token Service Providers (TSPs).<\/p>\n
Now you might wonder what this tokenization process is and how it will provide more security?<\/p>\n
And who can issue these tokens?<\/p>\n
And do we have to enter all the card details again and again while shopping online?<\/p>\n
Don’t worry; we are here to answer all your questions. So jump right into the article to know more.<\/p>\n
<\/a><\/p>\n E-commerce giants like Amazon, Myntra, Flipcart, Bigbasket, etc., ask you to save your card details every time you shop with them.<\/p>\n The card data like card number, expiration date, and CVV get stored in these companies’ databases.<\/p>\n But if the databases get hacked, it poses a real problem as all the card data will become easily accessible. But what if there is a safer way? Enter Tokenization<\/p>\n Tokenization is the process of converting your card details into a unique token that is specific to your card and only to one merchant at a time.<\/p>\n This unique token hides all your card details so that no one can misuse them. You can save this token on the online server and make repeated transactions by just entering your CVV without entering your card details again and again.<\/p>\n This rule comes into effect from January 1st, 2022, and all e-commerce websites cannot store your card details.<\/p>\n <\/p>\n When checking out in an online shopping portal, you can enter your card details and opt for tokenization.<\/p>\n The merchant will forward the token request to the respective bank or the card network. A new token unique to the card and the merchant is generated and sent back to the bank\/card network.<\/p>\n You can save this token for future use, i.e., whenever you shop on the portal, you can use the saved token option and enter the CVV of your card and complete the transaction.<\/p>\n And if you choose not to use the token, you will be needed to enter all the card details again in the next transaction.<\/p>\nHow does this card tokenization work?<\/h2>\n
History of Tokenization:<\/h2>\n