Tokenization system: Debit-credit cards to undergo 'these' changes for online payments from July, see details

 

Debit card: THE RBI plans to launch a token system for online payments from July. Let's learn about what a token system is, how it will work and why it is necessary.

 {tocify} $title={Table of Contents}

Highlights:

*The month of July is important for credit debit card users

*Token system for online payments to be launched

*See how to get a tokenized card

New Delhi: Tokenization System: 

The month of July will bring some major changes for all credit and debit card users. The Reserve Bank of India has announced to start tokenisation of card transactions from July 1, 2022. According to THE RBI, tokenised card transactions are considered more secure. This is because online payments are not shared with the original card details with the merchant during the process. Tokenization means replacing the original description of a card with a token. Which will be unique for the card combination. The token requester accepts the request for the card token from the customer and sends the card to the network. The original card data, tokens and other related information are stored in secure mode by the official card network. Primary Account Number (PAN) i.e. tokens of credit and debit cards cannot be stored from the description request. A card network is also required to authenticate the token request for security.

What are the benefits of tokenization?

Any online payment made with a token card is fixed to protect users from fraudsters. This is because, during any transaction, the original card details are changed by token while sharing the card details with the merchant. From July, online payment tokens will be unique for each card, token user and merchant. Earlier, while making any online payment, credit or debit cardholders would save their card details on merchant sites. Because, it was convenient to make a payment.

But, as the card details are saved online, the fraudsters steal the details. To deal with such online payment scams, the RBI introduced the token system. Card tokenization is not required. If the token system is not opted for, users will have to enter all the details every time to complete the online payment by june end. Card tokenization is free.

Also Read: How can we trace the missing phone?

How to get a tokenized card?

You can get a card token by requesting through a token requester on the bank's website or app. On requesting the token, the merchant will directly send the request to the credit card issuing bank (Visa/ Mastercard/ Dinner/ RuPay). The party that receives the token request from the token requestor will create a token. which will be related to the token requester and the merchant.

FAQ(Frequently Asked Questions)

Q1. Tokenization system: what cards will undergo these changes for online payments from july?

Ans- Debit-Credit Cards

Q2. What does tokenization mean?

Ans- Replacing The Original Description Of A Card With A Token

Q3. Who accepts the request for the card token from the customer and sends the card to the network?

Ans- The Token Requester

Q4. Why is any online payment made with a token card fixed?

Ans. To Protect Users From Fraudsters

Q5. What happens during a transaction to protect users from fraudsters?

Ans. The Original Card Details Are Changed By Token

Q6. What is the cost of card tokenization?

Ans. Free

Q7. What will the party that receives the token request do?

Ans. Create A Token

Q8. Who will the token be related to?

Ans. The Token Requester And The Merchant

Also Read: Cryptocurrency scams: 46,000 people cheated, 7,775 crore hit; A message on social media caused