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Tuesday, July 5, 2022

Debit Credit Card Rule: New rules for debit and credit card transactions will be implemented from July 1, did you know?

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Debit Credit Card Rule: After the Reserve Bank of India’s card tokenization rules come into effect from July 1, merchants and payment gateways will have to delete the customer’s card data stored on their servers. Under this, the user has to enter the complete details of the card to make payment on merchant websites. This means that every time you do a transaction, you have to enter the debit-credit card details. Banks have started informing their customers about these changes.

Earlier the rule was to come into force from January 1, 2022.
Let us tell you that earlier this rule was going to be applicable from January 1, 2022, but to prepare merchants and people for this system, RBI extended its deadline till July 1, 2022. Now that there is only a little time left for the 1st of July, then banks and merchant websites have started sending messages to the customers for this.

What is the meaning of tokenization?
After the implementation of RBI’s card tokenization rules, merchants and payment gateways will have to delete the customer’s card data stored on their servers. As per the existing rules, the transaction is based on 16-digit card number, expiry date of the card, CVV and one-time password or OTP. Tokenization is the ability to replace the original card number with an alternate code, called a ‘token’.

why was it needed
With increasing digital usage in the country, more and more people use online payments to book hotels, shops or cabs and sometimes save their cards on that particular site to make it easier to access multiple websites or payment gateways. Huh. However, this method makes cyber fraud easier and sometimes there is a risk of hacking of these data. To make this system secure and to keep online payment safe, RBI had announced to implement this card tokenization system.

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