Tokenization system – Digital Payment through Credit /Debit Cards
A Major Change will occur with effect from 1st January 2022 related to Credit and Debit Cards for online shopping and payments digitally.
Reserve Bank of India is being Implemented the New Rule w.e.f the said date as in current practice the merchant website or apps has an option to save your credit/debit card details at their site, It will No longer be available on merchant site and if in previous they have stored your information will be deleted. and in the future, if you wish to make payment digitally you have to again enter your Card details on that site like 16 Digits card number and CVV and then verify through and One Time Password.
By Seeing it HDFC Bank Already started aware to their customers of the new rule through an alert or pop-ups. They are showing a Message like this that “In accordance with the new mandate of Reserve Bank of India for better security of Debit and Credit Cards, your HDFC Bank card details saved on the merchant website/app will be deleted by the merchant with effect from 1st January 2022. Every
time when customer wants to pay, customer will be an option to enter the complete card details or follow the tokenization system.
Tokenization systems help cardholders to protect their information and they do have not to fill in their actual card details at the merchant site and the original details will be replaced through a new alternate code. and the code number will be called Token.
As Soon as Token generate the tokenized card details can be used in place of the original Credit/Debit Card Number. and it will definitely safeguard the cardholders.