Users of debit and bank cards face quite a few threats from fraudsters – like skimming, hacking, phishing and so forth. To make the playing cards safe and safeguard the cardboard customers, the Reserve Bank of India (RBI) has taken a number of steps over time with the development in applied sciences and alter in modus operandi of fraudsters.
The newest step taken by the RBI on this path is tokenisation, which seeks to switch the cardboard numbers with tokens.
“Tokenisation is a concept introduced nationwide by RBI to safeguard all card users. RBI had earlier mandated that all cards be upgraded to chip and pin more from the magnetic stripe. RBI also mandated that all cards require OTP for transaction authentication where the card is not physically used which is commonly called “Card not present” transactions. In a latest round RBI has disallowed utilizing auto-debit on playing cards for recurring fee transactions. Thus RBI has progressively launched security measures to guard card customers from potential dangers,” stated Balaji Jagannathan, Director and Founder, Paycorp.io.
Accustomed to utilizing the cardboard as it’s in shops and on on-line platforms, the prevailing card customers, nevertheless, could really feel uncomfortable, no less than initially.
“Tokenisation of cards is a simple, yet powerful mechanism for customers to transact online using cards safely. Today consumers share their card details with eCommerce portals which these portals store in their entirety. While many of these eCommerce providers store them safely, we have seen that hackers gained access to the card details frequently. Tokenisation provides a standardised safe mechanism where eCommerce providers can use a specific, designated 3rd party to store the card information. Consumers need not provide the full card details to the eCommerce providers anymore. Instead, they can share the corresponding token,” stated Jagannathan.
“The eCommerce providers will use the token to retrieve the card information and complete the transaction safely. As a user, it can be quite unsettling to know that your entire card detail is stored across multiple eCommerce servers and it can potentially fall in the hands of hackers or can be misused. Tokenisation provides a big relief to the users from this risk. Now users can be fairly confident that their card information will be stored only with approved 3rd party card tokenisation companies that are specifically regulated and mandated to keep the information safe,” he added.
Due to implementation points, the RBI had postponed the deadline of the tokenization rollout earlier. So, are the monetary establishments and the third get together token suppliers prepared now?
“The banks or financial institutions need not make any change to their current processes in order to support tokenisation. The card information storage and access is a matter of interface between eCommerce providers and the 3rd party tokenisation providers. The eCommerce portals need to use the token provided by the user to resolve the card details. Once this is done, the transaction can proceed as normal,” stated Jagannathan.
“The financial institutions will not require any change to their IT infrastructure. In fact, our corporate customers as well do not need any change to their IT infrastructure. When the eCommerce provider identifies their 3rd party tokenisation provider, we will do a one-time integration. Once this is complete, the entire solution works seamlessly without any change to the customers’ experience,” he added.
Talking on the position of Paycorp within the tokenisation course of, Jagannathan stated, “Paycorp works with payment gateway providers that provide card processing services. These gateway providers have made the necessary process changes to resolve token information to card details. So all card payments processed by Paycorp will automatically resolve the token to card information. Our customers will automatically comply with the guidelines.”
Source: www.financialexpress.com”