Tokenisation: Know The Advantages, Features, And Its Impact On You
NDTV
The RBI has mandated that all credit and debit card information used for online transactions be replaced with unique tokens.
Several incidents of online fraud and credit-debit card scams that occurred during online payments have been troubling common users for a long time. The Reserve Bank of India (RBI) has made the decision to implement card tokenisation as of October 1 in order to safeguard consumers from cyber fraud that may happen when they save the specifics of their credit or debit card on online retailers or shopping websites.
The RBI has ordered that no payment aggregator, payment gateway, or merchant can hold credit or debit card information of any consumer as part of the changes to the laws governing the usage of debit and credit cards for making online payments.
Tokenisation is poised to be used in daily life, so understanding how it works is essential.
According to the State Bank of India, "Tokenisation is the process of replacing a card's 16-digit number on the plastic card with a unique alternate card number, or 'Token', which shall be unique for a combination of card, token requestor, and device. Tokens can be used for online transactions, mobile point-of-sale transactions, or in-app transactions. This token contains no personal information that can be directly accessed and keeps changing, making it the most secure method to complete payments. "
