27 February 2024 | By INDIE
For avid online shoppers, the convenience of having credit/debit card details saved on payment gateways simplifies transactions with a single click. However, recent RBI regulations prohibit the storage of card details on these platforms. To circumvent this inconvenience, tokenisation offers a solution. This innovative approach replaces your card information with a unique token number. Continue reading to learn about tokenisation, its inner workings, and the benefits it provides. What is Tokenisation?
Tokenisation is the process of replacing sensitive data like credit/debit card details or bank account numbers with a token. Before the introduction of tokenisation, a merchant initiated the transaction by transmitting the transaction details, along with the card details, to your card issuer. The card issuer would verify the details and approve the payment. For instance, if you are using an INDIE Debit Card, the merchant transmits the debit card details to the bank. Upon verification, the bank approves the payment.
If your card is tokenised, the merchant initiates the transaction without the card details. Instead, the merchant transmits the token which has your card details to the bank. If the token number aligns with your card details, your bank will approve the payment. Thus, sensitive data relating to your card will not be compromised.
Tokenisation is the ultimate solution to avoid data breaches and secure your online transactions.
A token is a unique and random set of characters that is linked to your card details. With tokenisation, sensitive card details are not disclosed during a transaction. It reduces the risk of fraud by enhancing the security of online transactions.
The tokens issued will be different for each merchant. For instance, the token issued for transactions on Amazon will be different from the one on Flipkart for the same card.
After understanding what is tokenisation, you should also be aware of the process to tokenise your card.
A checkbox marked 'Secure Your Card' or 'Save Card as per RBI Guidelines' will be displayed.
Tick the checkbox.
An OTP will be sent to your registered mobile number.
Upon entering the OTP for verification, your credit card details will be secured with INDIE.
Next time you choose to make an online payment, just select the token bearing the last four digits of your card.
On opening an INDIE Savings Account, the bank will issue a debit card which you can tokenise easily and use for online transactions. With the online bank account opening option, you can open an INDIE Bank account at the comfort of your home and avail of multiple benefits associated with the account.
Tokenisation is not mandatory for cardholders as per RBI guidelines. However, payment gateways can no longer save your card details. Tokenising not only avoids entering the card details for every online transaction but also has several other advantages. They are:
Substituting the card details with a random number, i.e., a token, minimises the risk of online fraud. The card details are not stored with merchants. In the instance of a data breach, scammers will not gain access to your card details.
The checkout process will be seamless and faster. You will no longer have to enter card details for every online payment.
If you choose not to use a card that is tokenised, you have the option to suspend the token. Similarly, if your card expires and a fresh card is issued, you can tokenise the new card as well.
It eliminates instances of failed transactions due to the entry of incorrect card details.
EMV technology and tokenisation are both measures devised to secure online transactions. But they are different in some ways as mentioned in the table below:
| EMV Technology | Card Tokenisation |
| EMV cards have a tiny computer chip that creates a unique code for each transaction. | Card tokenisation provides a token which is a unique code that is linked to card details. |
| Secures a physical card using a microchip. |
Protects payment data in digital transactions. |
| Prevents fraudulent use of cards at point-of-sale terminals. |
Sensitive card details are replaced with a token which does not make sense to hackers. They will not be able to decipher the token. |
Data breach during online transactions cannot be ruled out. The existing card security is enhanced with tokenisation. The benefits of tokenisation are manifold for both the cardholders and the businesses. Whenever you make an online payment choose the 'save card as per RBI guidelines' option to tokenise your card. This will ensure a seamless and faster check out experience every time you shop online. Your card details will be safe with your bank.
