Tokenization is one of the most effective ways to improve the security of your online transactions. When you tokenize your debit cards and credit cards, instead of providing the card details to the merchant, you provide a unique digital identifier instead. This means that even if your card details are compromised, the fraudster will only have a useless set of card details. You can tokenize your debit and credit cards in just 6 simple steps.

In response to feedback from industry organizations, the Reserve Bank of India (RBI) extended the deadline for credit and debit card tokenization by three months, to September 30, 2022, on June 24. Card information saved by a payment gateway and a merchant for future purchases is referred to as "card-on-file," or CoF. The previous deadline was June 30, 2022.

In an official notification, the RBI noted that business owners had raised a number of issues with the framework's application to visitor checkout payments. Moreover, not all categories of sellers have significantly embraced the adoption of tokenized transactions.

What Is Credit And Debit Card Tokenization?

Tokenization of your debit and credit card is a process by which a financial institution creates a unique digital identifier for your debit or credit cards instead of showing the card number on your online transactions. This is done to protect cardholders from online fraud. In simple words, tokenized debit and credit cards are safer than the regular debit and credit cards. The credit card tokenization process is being carried out by the banks across the country and has been given an extension till Sep 30, 2022.

Tokenizing your card is very simple and can be done within minutes, that too online. 

  1. Step 1: To make purchases and start payment transactions, go to any e-commerce merchant website or application.
  2. Choose your card in step 2. Enter your debit and credit card information, along with any other information, during the checkout process.
  3. Secure your card in Step 3. Choose either "Secure your card in accordance with RBI guidelines" or "Tokenize your card in accordance with RBI guidelines."
  4. Step 4: Approve the token's creation. Enter the OTP that your bank sent to your email or mobile device to cancel the transaction.
  5. Create a token in step 5. Your token, not your actual card information, is generated and saved.
  6. 6th step: Tokenization. The last four digits of your saved card are displayed when you return to the same website or application to make it easier for you to recognize your card when making purchases. tokenized!

Why Is It Important To Tokenize Your Card?

In the past, when you purchased something online or in a store, you would provide your card information to the merchant. Your card information, including the card number, was passed from the merchant to the bank or credit union to process the transaction. This process was the way that card information was transferred for many years. But it has become more and more risky.

Tokenization of debit and credit cards prevents your card details from being stolen when you shop online. By tokenizing your card, you reduce the risks of unauthorized purchases and improve the security of your online transactions. This way, even if your card details are compromised, the fraudster will not be able to use it for online purchases. When you tokenize your card, you don't have to worry about the security of your online transactions.

Tokenization of credit cards allows you to use your credit card more frequently, thus improving your credit score too. 

You can prevent unauthorized purchases by tokenizing your card. If you don't have your card with you, or if you want to make a purchase as a guest, you can use your token to make purchases. You can also use your token to provide a secondary form of authentication when signing into your account. This can be useful if you've forgotten your password or if you want to provide additional security to your account.

Will Tokenization Change The Way Credit And Debit Cards Are Used At Merchant Locations?  

Tokenization will only affect online transactions for the time being. The use of tokenization will not change the way that credit and debit cards are used at merchant locations. When you visit a merchant location, the same process used today will happen. You will provide your card information to the merchant. The merchant will pass your card information to the bank or credit union to process the transaction.

Conclusion

The process of tokenizing your card is simple and easy. It only takes a few minutes to complete, and you can do it anytime, anywhere. The process is also completely secure, so you don't have to worry about your personal information being compromised.   If you're ready to start making safer online purchases, choose the option to "Tokenize your card in accordance with RBI guidelines."

FAQs of How To Tokenize Your Debit, Credit Card In 6 Steps

1.  What is tokenization of my debit and credit cards? 

Tokenization is the process of replacing your card information on record with a unique digital code that acts as your card information. When you make a purchase online or in a store using your tokenized card, your card information is never actually processed. Instead, the merchant and bank or credit union receive a digital code that can be used to process your transaction instead. The code is saved as your card information, so it appears as if your card was actually processed.

2. Who should tokenize their debit and credit cards?

If you use your debit or credit card to make purchases online or in a store, you should choose the option to tokenize your card. 

3. What are the benefits of tokenization of debit and credit cards?

If you have a debit card or credit card, you should consider tokenizing your card. This will help protect your card information from being stolen when you shop online. When you tokenize your card, you reduce the risks of unauthorized purchases and improve the security of your online transactions. This way, even if your card information is compromised, the fraudster will not be able to use it for online purchases.

4. Are all credit and debit cards to be tokenized?

Yes, all valid credit and debit cards are to be tokenized.

5. When is the last date to tokenize my debit and credit cards?

RBI has advised that the last date to tokenize your cards is on or before September 30, 2022.