Tokenisation: What it means for your Credit Card purchases

With the ever increasing risks posed by cyberattacks and fraud, card-on-file tokenisation has been introduced as a measure of safeguarding our data from online breaches. This solution is mandated for all digital payments in India according to RBI, ensuring that your sensitive information will be secure with every transaction you make. Learn more about this revolutionary technology and its benefits in this article.

What is card-on-file tokenisation (COFT)?
 

If you have used your credit or debit card in the past to make online payments, you might have saved your card for easy future use. This means the details of the card (your name, card number, CVV code, and expiry date) will be saved by the website or app. 

However, with card tokenisation, this information will be replaced with an alternative code known as a token. This token will be used by the merchant to establish your identity when you make transactions in the future.

How does card-on-file tokenisation work?
 

• With card tokenisation, a merchant can move data between different networks without compromising sensitive information. 
• It is a randomly generated token that is used to pass, access, transfer, or retrieve your credit or debit card information safely. 
• It applies only to online transactions and the process substitutes your sensitive data with a one-time alphanumeric ID.
• Card tokenisation will not happen automatically when you make a purchase; you will have to tokenise the card.
• Tokenisation is not a mandatory process but it will enhance the security of your debit and credit cards.
• There is no limit to the number of cards you can tokenise. 

Benefits of card tokenisation in India

The main purpose of card tokenisation is to counter online fraud and reduce digital payment breaches, but it also comes with many other benefits:

• Enhanced safety and security: The tokens generated on your card will be unique to the merchant and card, which elevates the transaction security. It does away with the need to store your card details online; once the card is tokenised, you will only see its last four digits. When you upgrade, replace, or renew the card, a new token for transactions will be created. 
• Faster checkouts: When you use a tokenised IDFC FIRST Bank credit card, you enjoy the convenience of quicker checkouts since you do not have to fill in your card number at every purchase. Whenever you make an online transaction, you will see the last four digits of your card and you authenticate the purchase with your CVV and an OTP.
• Easy card management: Card tokenisation helps you keep track of all your credit/debit cards and the merchants they have been tokenised with. 
• Stop worrying about losing the card: Since you have a virtual version of the card on your phone, you won’t need it all the time. This eliminates the possibility of losing your card or having it stolen.

In conclusion

Tokenise your credit card and you can ensure greater security in your online transactions. If you have a IDFC FIRST Bank credit card  here are the steps to tokenise it:

• When you start a payment transaction, enter the card details and choose ‘tokenise your card’
• You will receive an OTP on your phone; simply enter it and create the token
• When you return to the same website, you will see the last four digits of your saved card

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.