Reserve Bank of India orders: Merchants will not be able to save / store customer’s card number, CVV and expiration date and any other sensitive card information.
New Delhi, Dt
The Reserve Bank of India has directed that by June 30, 206, all online, point-of-sale and application transactions made by credit and debit cards should be replaced with unique tokens. According to the RBI, tokenization refers to replacing actual card details with an optional code called a token, which would be unique to a combination of cards. You may have noticed that websites and apps offer customers the option to save their card details. It can be used to make quick and easy payments. This method will be implemented from July 1, 207. Under this merchants will not be able to save / store customer’s card number, CVV and expiration date and any other sensitive card information. In this process a unique alternate code is generated to facilitate the transaction. You will need to use this unique code instead of the card number. This means that people will not have to share their card number and other information with anyone. Apart from this, customers will not need to save their card details in any application. Tokenized card transactions are considered secure because the actual card details are not shared with the merchant during the transaction process. For transaction tracking and settlement purposes, organizations may store the last four digits of the card number and the name of the card issuer. Token generation requires customer consent and verification-based authentication.
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