Your credit and debit cards will be safer to use for online purchases starting on July 1.
Payment aggregators, wallets, and online retailers are not to keep any sensitive card-related client information, including complete card details, according to a directive from the Reserve Bank of India (RBI). A "token" will be used in place of the 16-digit card numbers. Only by using a new procedure known as "tokenization" will you be able to effortlessly make a card payment repeatedly.
Until recently, you had to preserve your debit or credit card information each time you made an online purchase from a retailer or reserved a train or aircraft through a travel website. You might complete the payment transaction in a matter of seconds by entering just the three-digit CVV number. But doing so in the current format is dangerous. Popular websites have occasionally been compromised by thieves who stole saved card information.
The 16-digit debit or credit card number will now be replaced by a singular token that is specific to only your card and to one retailer at a time thanks to tokenization. The token hides your card's actual information, preventing fraudsters from abusing it if there is a data breach on the retailer website.
Online purchases, mobile point-of-sale purchases, and in-app purchases can all be made using tokens. The most secure way to make payments is with a token because it never contains personal information that may be obtained and is always changing. When you use your card at the checkout counter of a real store, you do not require the card's token.
All merchant websites are not permitted to save your card details, CVV, or expiration date on their servers for the purpose of completing online transactions as of July 1 due to the tokenization requirement. Card users should either generate a token on the shopping website before making a purchase and save it there (for future use) or create a token and save it (for future use) at the time of payment after making a purchase.
Customers can decide whether to allow their cards to be tokenized on a merchant's website, although the process of tokenizing debit and credit cards is not required. Then, whenever a consumer makes an online purchase, they must enter their card information again, including the 16-digit card number, expiration date, and card verification value (CVV).
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