If you use online payment, then there is important news for you. In fact, the Reserve Bank of India (RBI) has issued an order to tokenize the card for making online payments on the merchant website. This new rule of RBI will be implemented across the country from July 1, 2022. Meaning if you shop on the e-commerce portal, then it is necessary that you get the card tokenized.
Tokenization refers to the replacement of credit and debit card details with an alternate code called a token. Under this arrangement, online merchants will now have to use token numbers instead of card data to store their customers’ cards on their platform.
Sharing card information makes fraud more likely. In such a situation, to prevent incidents of fraud, RBI has directed merchants to store special codes for online payments, which will not be your original card number.
One token is valid for one card and one merchant only. If you tokenize your credit card for one e-commerce site, the same card will have a different token on the other site. This is to prevent fraud. In addition, you can request tokens on any card to make transactions.
No service charge will be levied for tokenizing the card. It will be completely free.
When you shop online, you either create a token and store it on a specific website for your future use. Currently, when you buy something, you enter your card details. However, now RBI has directed to delete any data stored before 30 June 2022. has been called for. PLC/GT