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Debit-Credit Card Usage Rules To Change From January 1, 2022. Know All About Tokenisation


Bank Card Tokenisation: Making online payments is a routine practice as now people prefer to make online payments instead of keeping cash with them. Whether it’s ordering food, shopping, or booking a cab, people make online transactions and save their passwords, debit and credit card details on the same portal.

However, with online banking, online fraud has also increased drastically. Therefore, to make online payments more secure, the Reserve Bank of India (RBI) has asked all merchants and payment gateways to remove sensitive details of customers’ debit cards and credit cards that they have saved.

The new debit card and credit card rules will come into effect from January 1, 2022, and RBI has also asked merchant and payment gateways to use encrypted tokens to transact. Banks have also started informing their customers about it.

With effect from January 1, 2022, the details saved by the merchants on their website/app will be deleted as per the RBI order for the security of the bank cards. Customers will have to enter the full details of the card every time or they have to choose the token option to make a payment.

The word token means replacing a real card number with an optional code that will be converted into a token. Token card data can be used in place of the actual card number for future online purchases as directed by card users. A token card is safer than real card details to make payments and share with online merchants. You don’t need to provide details like card number, expiry date, CVV, such as debit/credit card transactions when using tokens.

How to get a token card?

  • You can get the card token by giving a request on the bank’s website or app through a token requester.
  • Once you request a token requester, the merchant will send the request directly to the bank that issued the credit card/visa/MasterCard.
  • The party that receives the token request from the token requester will create a token that belongs to the card, token requestor, and merchant.
  • Token cards apply to NFC-enabled POS transactions on mobile credit cards, Bharat QR code-based payments online or offline payments. As well as on all possible online and offline merchants.

Is card tokenisation safe?
A token card for making payments and sharing with online merchants is safer than real card details. The initiative is expected to make card transactions safer and more convenient for users.


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