Sign In
Learn bits
Economy
Mahesh

02/10/22 08:50 AM IST

Card Tokenization

In News 
  • The tokenization of card-based payments will be implemented from October 1, 2022.
Card Tokenization 
  • Around 35 crore tokens have already been created and in September, about 40 per cent of transactions were undertaken using tokens, at a total value of Rs.63 crores.
  • The RBI required all merchants to delete the customer debit and credit card details before October 1 and replace the card payments with unique tokens.
  • It mandates masking all sensitive details like 16-digit card numbers, names, expiry dates, and codes with a unique card number called token.
  • This rule is applicable to all stakeholders except card issuers and card networks.
  • Under these rules, the central bank has permitted authorized card payment networks to offer card tokenization services to consumers requesting it.
  • After December 31, 2022, it will be impossible to store card details, except by card networks and card issuers
Tokenization 
  • Tokenization is the process of replacing card details with a unique code or token, allowing the individuals to purchase online without exposing sensitive card details.
  • Token is a randomly generated unique placeholder obtained from the company’s internal network.
  • It is used to access, retrieve and maintain a customer’s credit and debit card details.
  • It is used when recurring payments are made or when merchants store card information to speed up checkouts.
  • It ensures improved safety and security of card transactions. Often times, debit and credit card information are exposed on merchant website during hacking incidents.
  • Card tokenization will help address this issue. It allows customers to save digital copy of their cards on their smartphones.
Source- Live Mint 

More Related Current Affairs View All

05 Mar

First-ever comprehensive survey of India’s river dolphins

'Prime Minister Narendra Modi released the results of the first-ever comprehensive population estimation of riverine dolphins – Gangetic and Indus dolphins – done in In

Read More

05 Mar

Arresting women at night

'The Madurai Bench of the Madras High Court in Deepa versus S. Vijayalakshmi and Others ruled that the legal provision in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, which

Read More

05 Mar

Digital Personal Data Protection Act, 2023

'The Ministry of Electronics and Information Technology (MeitY) looking to wrap up public consultations on the draft Rules for the Digital Personal Data Protection Act, 2023 by Mar

Read More

India’s First Ai-Driven Magazine Generator

Generate Your Custom Current Affairs Magazine using our AI in just 3 steps