The Reserve Bank of India (RBI) has asked to compulsorily replace debit and credit cards with tokens by September 30, 2022. After the tokenization system comes, your data will not be saved with the company.
Due to which there will be a reduction in fraud on credit and debit cards. How does the token system work? How will your card data be safe with this, read in this article.
Know about the token system
The token system converts all debit and credit card data into ‘tokens’. By which the information of your card is kept hidden in the device. RBI has said that any person can convert the card into token by requesting the token bank.
There is no charge to the cardholder for tokenizing the card. If you convert your card into a token, then your card information will be saved in the token on any shopping website or e-commerce website.
Debit and credit cards will be safe
By converting to token you will be able to use the card easily. This system will also keep your card safe from online fraudsters. RBI has made this rule for the safety of the customers. Card information such as number, CVV and expiry date are maintained in the merchant’s database for ease of making payments. Due to which there remains a security risk associated with this data.
According to the RBI, the information about the debit or credit card cannot be kept by anyone other than the card issuer or the network. If they already have data saved then it will be necessary to delete it.
Generate token like this
1. Go to any e-commerce website or application. Start a payment transaction after making a purchase there.
2. Select your card. Enter your debit or credit card information and any additional information requested at the time of making the payment.
3. Secure your card. Tokenize your card as per RBI guidelines or select the option “Secure your card as per RBI guidelines”.
4. Authorize the creation of the token. To complete the transaction, enter the OTP that your bank has sent to your mobile phone or email.
5. Create a token. Your card data is then replaced with a token.
