Card encryption will be effective from July 1, 2022
New Delhi:
There will be good news for all credit and debit card holders soon, as from July 1, 2022 onwards, online merchants will not be able to store customer card data.
The Reserve Bank of India (RBI) last year issued debit and credit card encryption rules, keeping in mind the safety of its customers. According to the rules, merchants are prohibited from storing customer card data in their servers.
These card encryption rules will now go into effect July 1, 2022.
RBI has mandated the adoption of card tokens on file for online purchases in the country. The nationwide token token acceptance deadline has been extended by six months from January 1, 2022 to July 1, 2022.
It will be stored as an encrypted “token” to help customers make secure transactions. These tokens will allow to make payments without revealing customer details. RBI guidelines mandate the replacement of the original token data with an encrypted digital token.
As a result, as of July 1, 2022, merchants will have to delete their customers’ debit and credit card data from their records.
Card encryption system is not required. Therefore, if the customer has not agreed to encrypt his card, then the customer will have to enter all card details such as name, card number and card expiry date instead of entering the card verification value or CVV, every time you make an online payment transaction.
At the same time, if customers agree to card encryption, they will only have to enter their CVV details or one-time password (OTP) during the transaction.
The encryption system is completely free and it provides a smoother payment experience while keeping one’s card data secure.
In addition, the token is only applicable for domestic online transactions.
According to the RBI, registration of encryption requirements is only possible with the express consent of the customer through the Additional Authentication Factor (AFA), not a mandatory or default or automatic selection for the client. with checkboxes, radio buttons, etc
