Brace for new debit, credit card rules from July 1
Debit and credit cardholders beware! Come July 1, your card details will get erased from e-commerce sites, apps and OTT platforms.
One will have to restore their card number and generate a unique token from July onwards in order to make online payments. This is part of the new rules set by the Reserve Bank of India (RBI), which makes it mandatory to adopt card-on-file tokenisation for online purchases so as to safeguard bank transactions.
Be it Netflix, Amazon, Swiggy or Zomato, these merchants will no longer be able to store users’ card data and, in turn, one will have to generate a unique token for each merchant in order to make card payments seamless. This new system will not only improve the safety and security of cardholders but also contribute to the growth of digital transactions even as the trust in online payments grows among users.
With the tokenisation system, one can hide their card details and only the last four digits of the card are shown to the customer. For every transaction, the unique token number will take the user to a payment gateway and generate an OTP for verification.
