Big news for credit and debit card holders! From July 1, 2020, your card details will be erased from all e-commerce sites, apps and OTT platforms.
Under the new rules issued by the Reserve Bank of India (RBI), users will be required to apply card-on-file tokenization for online purchases to protect banking transactions. In order to be able to make online payments, one therefore has to restore their card deets from July and generate a unique token.
Netflix, Amazon, Swiggy, and Zomato are some of the merchants on the list that can no longer store users’ card details, and each transaction requires one to generate a unique token to make card payments seamlessly.
This new system should guarantee the security of cardholders and contribute to the growth of digital transactions.
Reportedly, the tokenization system allows users to hide their card details and only shows the last four digits of the card number in the app. With each transaction, a unique token number takes the user to a payment gateway through which the bank can generate an OTP for verification.