Say Goodbye to One-click Purchases Starting Jan 1
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The Reserve Bank of India (RBI) declines the deadline extension for card tokenisation after the agreed date, i.e. 1 January 2022. RBI confirms that no more one-click purchases will be allowed on merchant sites starting from 1 January 2022. All card details which have been saved will be removed. Card issuers, i.e. banks, will need to render tokenisation services concerning their cards. It will be the responsibility of the card networks to ensure that the rules are followed by all the entities involved without fail.

Tokenisation will be used in online transactions; here, random digits will be keyed in the place of actual card details. With tokenisation, there will be no scope for leakage of customer’s sensitive card details. RBI has also announced that the tokenisation mandate will apply to devices such as mobile phones, laptops, desktops, tablets, wearables like wristwatches, bands, Internet of Things (IoT) devices, etc., that connects to the internet, payment aggregators, and merchants on-boarded by them.

Tokenisation will be done depending on a customer’s consent. Consent will be validated via additional factor authentication. RBI mentioned that card issuers could take token service providers (TSPs) and render card tokenisation services. Card issuers can provide services only for the cards that are issued by or affiliated with them. The same TSPs can tokenise or de-tokenise card data.

Starting 1 January 2022, you will not be able to save any of your card details. For every online transaction you intend to do, you will need to key in the 16 digits of your card and other information afresh. On keying in your details, information will reach the merchant in random numbers completely unrelated to the numbers you have keyed in.

However, there will be a slight exception for reconciliation purposes or transaction tracking. You will be able to store the last four digits of your card number and card issuer’s name – ‘in compliance with the standards that are applicable.’

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

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