Tokenization for online payments

Tokenization for online payments

As per the guidelines issued by Reserve Bank of India (RBI) (Circular CO.DPSS.POLC.No.S-1211/02-14-003/2021-22) on card data storage by online merchants, payment aggregators & ecommerce websites; the Credit, Debit & Prepaid Card details will no longer be stored on the merchant app/websites. In order to enhance the customer experience and facilitating the use of digital payment products in a more safe and secure manner, ‘Card tokenization’ has been introduced.

Card tokenization is a method wherein the sensitive customer data like card number, CVV, etc. is replaced with an algorithmically encrypted token generated by the card issuer or the payment network (Visa/ MasterCard/ Rupay). These tokens pass through the payment systems without disclosing the customer details or allowing the merchants, payment aggregators, etc. to store any kind of sensitive customer data.

So, secure your Kotak Credit, Debit & Prepaid Card, using the below mentioned easy steps:

  • Visit your online merchant's website/ app
  • Choose the product you want to buy
  • Select Kotak Bank Credit/ Debit/ Prepaid Card at checkout or enter your Kotak Bank Card details
  • Select ‘securely save your card’
  • After successful authentication, your card is now secure and you can pay conveniently without entering your card details every time.
 
 
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Frequently Asked Questions

What are the RBI guidelines on saving a card on an online merchant?

As per RBI mandate, starting October 01, 2022, sensitive customer information like complete card number, CVV & Expiry date or any other sensitive information related to cards cannot be stored by merchants for processing online transactions. The merchants will have to remove all details stored, by June 30, 2022.

They will be allowed to store the customer’s card details only through tokenization post taking an AFA (Additional factor authentication, eg: OTP) from the customer. This means that as per the new guidelines, you can now safely secure your card details using tokenisation while you shop with the online merchants.

 

What is Card tokenization?

Tokenization is a backend process of replacing Credit/ Debit/ Prepaid Card details with a unique set of characters or a 'token'. This will secure payments and enable future transactions without exposing any sensitive card details. 

Token generation is a system process, you just need to save your card.

 

What are the steps for tokenization?

  • Visit your online merchant's website/ app
  • Choose the product you want to buy
  • Select Kotak Bank Credit/ Debit/ Prepaid Card at checkout or enter your Kotak Bank Card details
  • Select ‘securely save your card’
  • After successful authentication your card is now secure and you can pay conveniently without entering your card details every time.

How to use a token?

A token once generated can be used for all future payments on the online merchant app/ website, there will be no need to enter your card details every time.

Can I tokenize my existing saved card?

Yes. You can tokenize your saved cards, depending on merchants. Merchants may either provide the option to save the card using tokenization while you are transacting or will prompt you post login on their website/ app to save your cards using AFA (Additional factor authentication, eg: OTP). 

What will happen to my saved cards on online merchant app?

From October 01, 2022, all the customer card details currently saved on the online merchant app/ website will be deleted. You will have to save/ tokenize your card once again which can be used for all future transactions or you can enter your full card number, CVV and Expiry date every time to complete the online transactions.