Tokenised card transaction

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Reserve Bank of India (RBI)'s New Credit & Debit Card Tokenisation Rules will be applicable from 1 October.


  • Tokenisation here refers to replacement of actual credit and debit card details with an alternate code called the “token”.
  • A token is a 16-digit number unique for a combination of card, token requestor and merchant. 
  • By tokenising the card with a merchant, the actual card details of the customer are replaced with token credentials, which can be used only for the merchant for which the token has been created.
  • Tokenisation can be performed only by the authorised card network and recovery of original Primary Account Number (PAN) should be feasible for the authorised card network only.
  • Adequate safeguards have to be put in place to ensure that PAN cannot be found out from the token and vice versa, by anyone except the card network. 
  • A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing. 


Source : Indian Express