Usually, the card details of a customer making any online transactions are saved from the merchant’s side to the payment aggregators and gateways of acquiring banks. The entities who have stored any information need to clear out and proceed with tokenisation. The Reserve bank of India (RBI) has introduced card tokenisation transactions to restrict the looting of money by fraudsters. The deadline for this is till June 30, 2022.
WHAT IS TOKENISATION?
Tokenisation is a unique alternate code that is created to facilitate transactions through cards.
The current card details are replaced by an alternate code known as a token.
The token is a unique combination of card, token requestor, and device. The token requestor is an entity that accepts requests from the customer for card tokenization and sends them to the card network to issue a corresponding token.
The process substitutes the 16-digit customer card number with a non-sensitive equivalent value known as a token.
The result is based on customers’ card details which will not be available to the third party that processes digital transactions.
WHY IS CARD TOKENISATION IMPORTANT?
Card tokenisation provides card security by reducing the risk of being mismanaged.
BENEFIT OF TOKENISATION:
The process of tokenization is free of cost, where the customers can only view the last four digits of the card.
This will protect users from fraudsters.
The card details will be replaced by tokens while sharing card details with merchants for any kind of transaction.
HOW TO GET A TOKENISED CARD
Step 1: Raise a request on the bank’s website or app through the token requestor.
Step 2: Once the token is requested by the token requestor, the merchant will request directly to the bank that initiated the credit card, visa, master card, diners, and rupay.
Step 3: Then the party receives the token request from the requester.
Step 4: The token requester will initiate a token that relates to the card, the token requestor, and the merchant.