With digital transactions on the rise, credit card tokenisation has become a vital security feature to protect your financial data. Let’s break it down:
What is Credit Card Tokenisation?
Tokenisation is the process of replacing your 16-digit card number with a unique, secure code known as a token. This token is used in place of your actual card number, ensuring that your personal details remain hidden during transactions.
- Where it’s Used: Common on e-commerce sites and food delivery apps—anywhere you save card info for easy payments.
Benefits of Credit Card Tokenisation
1. Secure Transactions: By hiding sensitive card data, tokenisation reduces the risk of fraud and data breaches.
2. Easier Payments: Once tokenised, your card is ready for quicker, more convenient payments.
3. Seamless Recurring Payments: Perfect for subscriptions! Sellers use the token to process future payments without needing your card details repeatedly.
How Does Tokenisation Work?
1. Entering Card Details: Users enter card info when making a purchase.
2. Choosing Tokenisation: The platform prompts you to select tokenisation.
3. Information Forwarding: The platform sends this info to your card issuer.
4. Token Generation: The card issuer generates a token and returns it to the platform.
5. Token Usage: The platform replaces your card details with this token, which can be used for future payments securely.
Check Your Tokenisation Status:
- Visit your bank’s website or app.
- Go to Card Services or Security Settings.
- See your tokenisation status or contact support for details.
RBI Mandate on Tokenisation
- The RBI requires all online merchants and payment aggregators to replace card numbers with tokens.
- Explicit Consent Needed: Users must authorize tokenisation through Additional Factor Authentication (AFA).
- Data Privacy: Merchants can’t store card details without tokenisation, keeping your data safer.
- Managing Tokens: You can tokenise multiple cards within an app and set limits. Users also have the option to suspend or remove tokens via the card issuer.
Tokenisation is a step toward safer online payments—an important layer of security that every digital spender should consider!