Credit Card Issuing Company, SBI Card, has taken a move towards preparing itself for the card tokenization system, which will be in effect from October this year. This system is designed to add an extra layer of security which will prevent fraud and data theft.
“In terms of our preparation, readiness wise, technology-wise, integration with all the networks, we are ready with all the networks like Visa, Mastercard and RuPay,” said Rama Mohan Rao Amara, MD & CEO of SBI Cards and Payment Services.
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As per regulated by the Reserve Bank of India, the tokenization system is to be in effect from October, which is the solution against frauds and data theft, its works by replacing the actual card details with an encrypted ‘token’, which will be the unique combination of that card, the token requester, and the device. This way, when credit card details are not shared with the merchants the users will be negligibly vulnerable to fraud and data theft.
Amara, on the card tokenization system, said, “It is a very good measure in terms of protecting the consumer interest and ensuring against any data leakage.”
“In late June, the RBI had extended the card-on-file (CoF) tokenization deadline by three months to September 30, on the back of various representations received from stakeholders,” mentioned by News18.
Before the extension, earlier the deadline for COF was June 30.
“I think the universe of large merchants which accounts for a major share of the spend, they have already been tokenized. It is smaller merchants who are doing it now (are in the process)”, said Amara.
“The kind of trend that we have seen among the consumers is that instead of patiently waiting for the reward points to accrue over some time, they want it on an instant basis”, further added.
“Now the demand is for an instant cashback. So, seeing this trend, we are launching this credit card. It is the first of its kind in the industry. In terms of merchant availability, it is very comprehensive in comparison to others in the market,” as per the officials.