New rules for debit and credit cardholders from next month

The Reserve Bank of India (RBI) has required that all credit and debit card data used in online, point-of-sale and in-app transactions be replaced with unique tokens. no later than September 30 of this year. The deadline has been extended by three months starting in July.

Here’s everything you need to know about the new rules for credit and debit card holders coming into effect from October:

What is card encryption?

Follow RBIencryption refers to replacing the actual card details with an alternative code called a “token”.

What are the benefits of encryption encryption?

Cryptographic card transactions are considered more secure because the actual card details are not shared with the merchant during transaction processing.

How can encryption be done?

Cardholders can obtain tokens by making a request on the app provided by the token requester. The token requester will forward the request to the token network, which, with the consent of the card issuer, will issue a token corresponding to the combination of the token, the token requester, and the device.

What are the fees that customers need to pay to use this service?

Customers do not need to pay any fees when using this service.

Who can do the encryption?

Encode can only be done by authorized card networks and a list of authorized entities is available on the RBI website.

What are the fees that customers need to pay to use this service?

Customers do not need to pay any fees for using this service.

What use cases (cases/scenarios) are already allowed for encryption?

Encryption has been allowed through mobile phones and/or tablets for all use cases/channels (e.g. contactless card transactions, QR code payments, apps, etc.)

Is card encryption mandatory for customers?

No, customers can choose whether or not to have their cards encrypted. Those who do not want to generate tokens can continue to trade as before by manually entering the card details at the time of making the transaction.

Are customer card details safe after encryption?

The actual card data, tokens and other relevant details are stored in a secure mode by authorized card networks. The token requester cannot store the Master Account Number (PAN), i.e. card number or any other card details. A token network is also required for token claimants to be certified for safety and security in line with international best practices/ globally accepted standards.

How does the encryption request registration process work?

Registration requires encryption only with the express consent of the customer via Additional Authentication Factor (AFA), and not by mandatory/default/automatic selection for checkboxes, radio buttons, etc. Customers will also be given the choice of choosing use cases and setting limits.

Is there a limit to the number of cards a customer can request for encryption?

Customers can request encryption of any number of cards. To make a transaction, the customer will be free to use any card registered with the token requester app.

Who do customers contact in the event of any problems with their encryption card? How and where can he or she report a lost device?

All claims should be made to the card issuer. Token issuers must ensure easy access for customers to report the loss of a “recognized device” or any other such event that could result in the unauthorized use of the token.

Can a card issuer refuse to encrypt a particular card?

Answer. Based on risk perception etc., a card issuer can decide whether to allow token claimants to apply for a card issued by them.

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