Tokens are set to replace card info for online payments from October 1, here’s how to adapt to it

Although tokenisation isn’t mandatory for consumers, sites can’t store card data and will depend on tokens, hence consumers will by default have to make the switch.

FPJ Web DeskUpdated: Thursday, September 29, 2022, 08:21 PM IST
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Every time you make a purchase from a new website, they ask for your name, credit or debit card number and CVV, before you wait for an OTP number to complete the transaction. This is why it helps when top platforms such as Amazon, Netflix and Myntra save your info, to process future transactions swiftly. But the sensitive information stored on these websites also causes data privacy concerns, and this is why credit and debit card rules have been upgraded.

What is it all about?

Now 16-digit numbers or account details on payment apps, streaming services and e-commerce sites will be replaced with a unique token, which will be a combination of a card, a token request and a device. Each transaction will be performed using this token for authentication, which means the sites won’t have your information on their databases.

Simple steps to upgrade

Tokens will be used from October 10th instead of card details, which is why merchant sites need to adapt to tokenisation.

Tokenisation can be done in simple steps, by first entering the card details while completing your purchase on a site.

After this select the option to secure or tokenise your payment details as per RBI guidelines,

Then you’ll receive an OTP similar to the process being followed now.

But this time it’ll create a unique token instead of saving the other details on the site.

The process isn’t mandatory for consumers, although sites can’t store card information and need to rely on tokens, which doesn’t really leave consumers with a choice. The deadline for this process to be completed is set at September 30, and from Saturday October 1, tokens will be the only way to carry out online transactions via cards.

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