Credit Card, Debit Card Rules to Change As Card-Tokenisation Comes Into Effect from July 1; Check Details Here
From next month, payment gateways, merchants, payment aggregators and acquiring banks will no longer be able to store customer card details. This means that businesses and other entities that store any such data will have to delete the information. This card tokenisation rule will come into effect from 1st July 2022.
New Delhi, June 21: Keeping in mind the safety of bank customers, the Reserve Bank of India (RBI) keeps taking certain steps regularly. In another such step, from next month, payment gateways, merchants, payment aggregators and acquiring banks will no longer be able to store customer card details. This means that businesses and other entities that store any such data will have to delete the information. This card tokenisation rule will come into effect from 1st July 2022.
What is Card Tokenisation?
According to the RBI website, “Tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”)." TDS Rule Update To Affect Doctors, Social Media Influencers From July 1; Here’s All You Need To Know
Debit card and credit card tokenisation process is not mandatory and a customer can choose whether or not to let his / her card tokenised. In that case, the customer will have to re-enter all card details while purchasing anything online.
Steps for credit card and debit card tokenisation
Step 1: Go to your favourite or most frequently used online website or mobile application to purchase items including food, grocery or clothes and then initiate a transaction.
Step 2: When it leads to the checkout page, select credit card or debit card payment option. Now provide the CVV details.
Step 3: Click on the option that says “Secure your card" or “Save card as per RBI guidelines"
Step 4: Click on save and enter the OTP received on your mobile number.
Step 5: Your credit or debit card is now successfully tokenised and is secured. Merchants will not be able to access your information anymore.
Besides tokenisation, several new rules have been brought in by the RBI. As per new rules, the request for closure of the credit card must be completed by the credit card issuer within seven days subject to payment of all dues on behalf of the cardholder. In case the issuer fails to do so within the 7-day timeframe, then a late penalty of Rs 500 per day will be given to the customer. RBI Issues New Directions for Credit Cards and Debit Cards, To Be Effective From July 1; Check Details Here
Besides if a person is issued a credit or debit card without applying, then banks will face a double penalty. Cardholders will also be given a one-time option to change the credit card's billing cycle to their preference.
(The above story first appeared on LatestLY on Jun 21, 2022 05:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).