“Industry stakeholders have highlighted some issues related to the implementation of the framework with respect to guest checkout transactions. In addition, the number of transactions processed using token It is yet to gain traction across all categories of traders. These issues are being dealt with in consultation with the stakeholders, and to avoid disruption and inconvenience to the cardholders, the Reserve Bank has today extended the said deadline of June 30, 2022 by three more months, i.e. up to September 30, 2022. has announced. This extended time period can be used by the industry to (a) facilitate all stakeholders to be ready to handle token transactions; (b) transaction processing based on tokens; (c) Implementing an alternative mechanism to handle all post-transaction activities (including chargeback handling and settlement) related to guest checkout transactions, which currently involve the storage of COF data by entities other than the card issuer and the card network. the wanted; and (d) create public awareness about the process of creating tokens and using them for transacting,” the RBI said in a notification dated June 24, 2022.
About 195 crore tokens have been created so far. The option of CoFT (i.e. token generation) is voluntary for the cardholders. Those who do not wish to generate a token can continue to transact as before by manually entering card details while transacting (commonly known as a “guest checkout transaction”).
Here are some important FAQs as per the Cards website.
1. What is tokenization?
Tokenization is the process of replacing the card’s 16-digit number on a plastic card with a unique alternate card number, or ‘token’ that will be unique to the combination of the card, token requester and device. The token can be used for online transactions, mobile point-of-sale transactions or in-app transactions. This token does not contain any personal information that can be accessed directly and varies making it the most secure method to complete payments.
2. What is RBI’s new token guideline?
RBI has directed payment aggregators, wallets and online merchants (entities in the card transaction/payment chain other than the card issuer/card network) not to store any sensitive customer information relating to the card, including complete card details. Therefore, as explained above, card numbers can be replaced with ‘tokens’. This RBI mandate will come into effect from October 1, 2022. Please rest assured that this will not hinder your work Credit Card experience but will make your credit card transactions more secure.
3. What will happen to my saved card from October 1, 2022?
Since the card details will not be saved from October 1, 2022, you will need to tokenize your card on the respective merchant website or app. If you have generated the token then you can continue making payment at that merchant without having to enter your card details again. In case you do not tokenize your card, you will have to manually enter your complete card details in order to transact.
4. How will the token be used by online merchants?
This token will be used instead of your card details for all online payments you make at merchants.
5. What is the advantage of tokenization?
A tokenized card transaction is considered secure as the actual card details are not shared/stored with the merchants to perform the transaction.
6. How can I tokenize my card with the online merchant?
You must follow the instructions specified by the online merchant and follow the registration and verification flow to register for the token and store the token with the online merchant. Normally, the process would involve entering your card details, followed by verification through OTP and then a token linked to your card would be generated. This token will be saved by the online merchant.
7. What happens if I do not tokenize my card?
If you do not choose to tokenize your card, you will be required to enter all your card details including card number, expiry and CVV for each of your payments.
8. How can I delete the token I have created?
You can delete the token by directly visiting the Merchant’s website/app and deleting the card linked to the token from your payment preferences. Alternatively, you can also call SBI Card’s helpline to make a deletion request.
9. Is there a limit to the number of cards I can request for a token?
You can request tokens for any number of cards to transact
10. Can I choose which card to use if I have more than one card token?
To perform any transaction, you will be free to use any card registered with the token requester/merchant.
11. Once tokenized, how will I see the card details on the merchant page?
You will be able to see the last 4 digits of the card on the merchant page.