How to get a token for a transaction: From October 1, online transaction rules for debit and credit cards will change for all users. In order to make all e-payments safe, convenient, quick and affordable, the Reserve Bank of India (RBI) has asked all operating banks to generate tokens for card details. In simple language, now all online, point-of-sale and in-app transactions done by debit and credit cards will have to be replaced with tokens issued by banks.

What is tokenisation?

Tokenization is replacing the debit or credit card details with a token issued by the operating bank. That is, now while paying something online, the user will not have to enter the 16 digits written on his card. In return, banks will issue a token for the transaction.

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With this, the customer’s card information will no longer be accessible to any merchant, payment gateway or third party platform. In this process, the name, expiry date and CVV code will also be mentioned on the card. It is being claimed that online fraud will be curbed and personal data of customers will be safe.

How to get a token?

The first step towards tokenisation would be to click on “Securing your card as per RBI guidelines” after the customer has entered all the card details for the transaction. Once done, the business will request the operating bank to issue a unique token for a particular transaction. Once consent is given, the business card will send the request to the network (customer).

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The buyer will then receive an OTP from the card issuer on his mobile or email, which will have to be filled on the bank page and the token will be generated. The same token will be mailed to the merchant. In case of any technical issues encountered in the transaction, he/she can save it from the customer’s phone and email id.

Updates so far

As per news reports, Paytm has tokenised over 52 million cards so far. Payments platform PayU has reported that it has tokenized over 50 million before the deadline. PhonePe has said that it has tokenised 15 million debit and credit cards so far and this is in line with the RBI deadline.

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