Credit card tokenization is the process of replacing the 16-digit number on a card with a unique combination of numbers, called a token. This approach improves the security of credit card transactions by ensuring that personal information is not included in the token.
Tokenization is commonly used by online platforms such as food delivery apps and e-commerce websites, where users are required to provide their card details. The process ensures that sensitive card information is stored securely on the credit card network.
Users can check their tokenization status by following these steps:
- Visit the bank’s website or mobile app.
- Navigate to the map services or security settings section.
- Check the tokenization status.
For more information, users can also contact their bank’s customer support.
RBI mandate for tokenization
The Reserve Bank of India (RBI) has issued a directive banning online merchants and payment aggregators from storing card-related information. From October 1, 2022, card numbers must be replaced by tokens.
The tokenization process is voluntary and requires explicit user consent through Additional Factor Authentication (AFA). Merchants or brands are not allowed to store card data without completing the tokenization process. Multiple cards can be tokenized within one application, and users can set specific limits accordingly.
Credit card issuers reserve the right to reject a tokenization request if risks are identified. Additionally, users can suspend a token by submitting a request to the card issuing entities.
Conclusion
In summary, credit card tokenization is a significant advancement in securing credit card transactions. By replacing sensitive card information with a token, users are better protected against potential fraud and privacy violations.
