Categories: Business

Credit card tokenisation: What it is and how does it work?

Credit card tokenisation is the process of replacing the 16-digit number on a card with a unique combination of numbers called a token. This approach enhances the security of credit card transactions by ensuring that personal details are not included in the token.

Tokenisation is commonly used by online platforms such as food delivery apps and e-commerce websites, where users must provide their card details. The process ensures that sensitive card information is stored safely with the credit card network.

Users can check their tokenisation status by following these steps:

  1. Visit the bank’s website or mobile app.
  2. Navigate to the card services or security settings section.
  3. Check the tokenisation status.

For further information, users can also contact their bank’s customer support.

RBI mandate on tokenisation

The Reserve Bank of India (RBI) issued a directive prohibiting online merchants and payment aggregators from storing any card-related information. As of October 1, 2022, card numbers must be replaced with tokens.

The tokenisation process is voluntary, requiring explicit consent from the user through Additional Factor Authentication (AFA). Sellers or brands are not permitted to store card details without completing the tokenisation process. Multiple cards can be tokenized within a single application, and users can set specific limits accordingly.

Credit card issuers retain the right to decline a tokenisation request if any risks are identified. Additionally, users can suspend a token by submitting a request to the card-issuing entities.

Conclusion

In summary, credit card tokenisation is a significant advancement in securing credit card transactions. By replacing sensitive card information with a token, users are better protected from potential fraud and privacy violations.

News Today

Recent Posts

Best phones to buy under ₹15,000 in November 2024: CMF Phone 1, Vivo T3x, Poco X6 Neo and more

Best phones to buy under ₹15,000 in November 2024: With tons of options available in…

3 mins ago

Why Bitcoin Price Could Climb Even Higher After Trump Victory, According to Analysts

2024-11-07 00:05:03 After climbing to a new all-time high earlier this morning, the Bitcoin price…

8 mins ago

This is how the Associated Press calls election winners

2024-11-06 23:45:03 One question will be asked over and over on election night: Who won?The…

28 mins ago

Control of Congress may come down to a handful of House races in New York

ALBANY, N.Y. -- New Yorkers could play an outsized role Tuesday in determining control of…

33 mins ago

Donald Trump Just Won the Presidency With Project 2025 As His Roadmap

2024-11-06 23:35:04 Donald Trump just took the U.S. presidency, and the blueprint for his second…

38 mins ago

When were things last this bad for Real Madrid?

2024-11-06 23:25:03 Ten days after their embarrassing 4-0 defeat to Barcelona in El Clasico, the…

48 mins ago