Online FRAUD - Token system for merchant payments to prevent credit card, debit card frauds - New rules applicable from THIS date - Check details
In order to protect people from online banking frauds now there will be a token number associated with their debit and credit card. There will be a separate token number for every merchant.
In order to protect people from online banking frauds now there will be a token number associated with their debit and credit card. There will be a separate token number for every merchant for which the e-commerce websites will have to tie up with the card payment companies.
As per the information, the token issued between the e-commerce merchant and the payment provider cannot be used anywhere in order to reduce the fraud instances.
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Token ID will be on the lines of UPI ID where customers will be able to make payment without releasing all their details. Many e-commerce companies have started their own payment aggregator platform to provide customers with an accessible payment interface experience.
The rule of additional factor authentication will be applicable on auto debit of the debit card and credit card from October 1, 2021. In this, the approval of the customer will be required for different payments therefore stopping auto debit on many utility payments.
As per the information, from January 1, 2022, every time you make a payment with a debit card or credit card, you will be required to mention the 16-digit number to the online merchant website because according to the rules of data security of RBI, companies cannot store data on the e-commerce platforms.
However, it can be noted that in the absence of token number, 16-digit number will have to be mentioned while making every payment.
Banks will have to send a notification 5 days before the payment due date and customers approval will be necessary on the notification. Also, while making a payment for more than Rs 5000, OTP will be required.
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