Have you ever faced a situation where your card was swiped without your knowledge? An unrecognisable transaction appears showing a large amount, and you are having to dispute it with your bank. If you are lucky, you may have the money returned to you. Some haven’t been as lucky.
We are now used to receiving an OTP on our mobile phones to provide the additional layer of protection. But is it enough?
Starting October 1, the RBI has mandated tokenisation of cards for merchants online who so far stored actual card details on their servers to help customers avoid keying in details every time they shopped with that merchant.
So, if you use a mobile app, the merchant can, on your behalf but only with your explicit consent, raise a request for a token with the card issuing bank or the card network such as MasterCard.
What are the benefits of tokenisation? Do you have the option of opting out of it? Does it protect it you from card fraud?