Tokenisation means the details of your cards such as 16-digit number, names, expiry dates and codes which you used to save earlier for the future payments will now be replaced by a token. The token is used by the merchant`s website for the transaction.
The Reserve Bank of India (RBI) is ready to bring its card-on-file tokenisation norms into effect from October 1 after various complaints were filed regarding the misuse of debit or credit cards.
In a circular, the RBI said the industry stakeholders have highlighted some issues related to the implementation of the framework in respect of guest checkout transactions.
Under RBI guidelines, e-commerce platforms such as Amazon or Flipkart won’t be able to save customers’ card details any longer. Customers will have to enter their card details every time they carry out an online transaction. However, to avoid the hassle, customers can choose to tokenise their cards. Here are 10 key takeaways on the change.