Card Tokenization: From July 1, payment will be done with tokens, know how to tokenize credit and debit cards

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New Delhi. There is going to be a big change in the rules related to credit and debit cards from July 1, 2022. Actually, from July 1, the tokenization system will be implemented for card payments. The purpose of the tokenization system is to prevent online banking fraud. If you do not tokenize your card, the debit or credit card saved on the online store will be deleted. Although card tokenization is not mandatory, it makes it easy to make repeated purchases or payments from the same website or app.

What is card tokenization
Under tokenization, a unique alternate code i.e. token is generated for the transaction through the card. These tokens will allow payment to be made without disclosing customer details.

Also read- Credit card statement contains many information, know the meaning of technical terms including due date

What is going to happen from 1st of July?
RBI has said that after June 30, that is, from July 1, 2022, the merchant will have to delete the data of the customer’s debit and credit card. This means that if customers have not given consent for card tokenization, they will have to enter all their card details like name, card number and card validity instead of entering the card verification value i.e. CVV every time they make an online payment. have to enter. On the other hand, if a customer agrees to tokenize the card, he/she will only have to enter the CVV and OTP details while making the transaction.

Also read- Good news for credit card users, now you will be able to pay through UPI too

How to tokenize credit and debit cards
>> Payment has to be made to buy things or services by visiting the preferred shopping website/app.
>> Select your preferred card payment option at checkout and enter CVV details.
>> After this click on “Secure your card” or “Save card as per RBI guidelines”.
>> Tap on Save and Enter OTP.
>> After this your credit or debit card will be tokenized.

Tags: credit card, debit card, RBI, Reserve Bank of India

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