What is Tokenisation & How it Affects your Credit Card Purchases

Posted on Friday, May 19th, 2023 | By IndusInd Bank

Tokenization is a process by which your sensitive card details are replaced by a uniquely generated virtual code known as a ‘Token’. It ensures safer credit card purchases, easier card management, quicker checkouts, and greater convenience.

On 1 October 2022, an important mandate of the Reserve Bank of India (RBI) came into force. According to the directive, payment aggregators, online merchants, and wallets can no longer save any sensitive information related to customer cards.

The card details would henceforth be replaced by a ‘token’ or a code in the form of a random arrangement of numbers and letters unique to that card.

If you are a credit card user and are concerned or even just curious about what is card tokenization, and how this may affect your credit card purchases, here’s everything you need to know on the subject.

What is Card Tokenization?

Card-on-file tokenization refers to the process through which your card’s actual details such as 16-digit number and expiry date are replaced by a unique code. This token does not have any personal information that can be directly accessed. Additionally, it is randomly generated. Tokenization is applicable only to online transactions as face-to-face or point of sale (POS) transactions do not involve storage of data. Every online merchant would have a unique token associated with every card.

How to Tokenize your Credit Card

Tokenizing your card is easy. All you have to do is follow the instructions specified by the online merchant to register for tokenisation.

Generally speaking, the process would involve the following steps:

Ø  Enter your card details and choose the option ‘tokenise your card’.

Ø  You will receive a one-time password OTP on your registered mobile number. Enter the OTP.

Ø  A token associated with your card will be created. When you next return to the same platform, you will only see the last four digits of your saved card.

How Tokenization Affects your Credit Card Transactions

Tokenization does not hamper your credit card experience in any way. On the other hand, it only makes your credit card transactions more secure because your actual card details are never shared with the merchant.

Tokenization of yourcredit card affects your transactions in the following positive ways:

Ø  Robust Security: Tokenization has been designed to improve card security for digital transactions. The fact that your card details are concealed ensures safer online transactions for your credit card.

Ø  Easier Card Management: Tokenizing automatically limits the number of places where your card data can be found. It is simple, convenient, and makes it easier to keep track of your credit cards and the online merchants they have been tokenised with.

Ø  Faster Purchases: Tokenization of your credit card results in faster checkouts because you do not need to fill in your card details on every credit card purchase.

Ø  Greater Convenience: Tokenization eliminates the need to carry any type of physical credit card to make online payments. Since there is a saved virtual version of your card, you can make payments anywhere and anytime without worrying about having to carry your wallet all the time.

Tokenizing your IndusInd Bank Credit Card

The process of tokenization is completely free of cost. It is also not mandatory for customers at present. However, it must be noted that if you do not tokenize your credit card, you will have to manually enter your full card details including card number, CVV, and expiry date for every credit card purchase you make.

If you have an IndusInd Bank credit card, you can go right ahead & tokenize your card to avoid the hassle of putting in the card details every time you make an online transaction. IndusInd Bank credit cards can be tokenized on several merchant sites such as Amazon, Flipkart, Swiggy, Make My Trip, and Big Basket among others.

Tokenize your IndusInd Bank credit card now for safe online transactions, and faster checkouts!

If you are looking out to apply for credit card, IndusInd Bank offers a diverse array of credit cards, each with a unique set of features tailored to meet varying lifestyle needs and preferences. From a range of credit cards with zero joining fees and zero annual fees to a host of cards with premium lifestyle privileges – IndusInd Bank has something in store for everyone. Apply Now.

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.