In recent years, credit/debit card fraud has become more prevalent. In response to this, many companies have started using a process called tokenization to help protect their customers’ information as per RBI’s new mandate. But what exactly is tokenization? This article will explain everything you need to know about card tokenization, from how it works to its benefits.
What is card tokenization?
Card tokenization replaces the customer’s credit or debit card number with a unique, random string of numbers called a “token.” Then the token is used to process online payments. Tokenization provides an extra layer of security for businesses and consumers by reducing the risk of fraud and data breaches. As a result, tokenization helps to protect businesses and consumers from the dangers of fraud and data breaches.
Card tokenization helps to reduce fraud by making it more difficult for thieves to access and use customer account information. In addition, card tokenization can also help to simplify the checkout process by allowing customers to use a single account number for all their transactions.
How does card tokenization work?
When you use your card to make a purchase online or in-app, the merchant will send your card information to their payment processor. The payment processor will then generate a token that represents your card information. By using that token, the payment processor processes the payments.
Card tokenization is a secure way to store and use your card information because the token is useless to anyone who does not have access to the payment processor. Even if someone intercepts the token, they would not be able to decode it and get your card information. Tokenization also helps to reduce fraud because it makes it more difficult for criminals to obtain and use your card data.
How can you create a token for your card?
Creating a card token is simple and only takes a few minutes. First, you’ll need to gather your credit or debit card information. It includes your card number, expiration date, and CVV/security code. Once you have all of this information, you can begin the process of creating your token.
The first step is to find a reputable tokenization service provider. Many different providers are available, so it’s essential to do your research before selecting one. Once you’ve chosen a provider, you’ll need to create an account and link your credit or debit card to that account.
Once your card is linked, you can generate a token. This token can be used in place of your actual card number when making payments online or in-app.
Conclusion
Card tokenization is a secure way to make payments without sharing your credit card information. When you use a tokenized card, the merchant will never see your actual credit card number. Instead, they will only see a randomly generated number (the token) that will represent your credit card. Tokenization helps to prevent fraud and keep your personal information safe. If you have questions related to card tokenization, you can check them on the official RBI website.
