{"id":132760,"date":"2021-09-09T19:04:07","date_gmt":"2021-09-09T13:34:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=132760"},"modified":"2021-09-09T19:04:07","modified_gmt":"2021-09-09T13:34:07","slug":"merchants-companies-cant-store-card-data-from-jan-1-rbi","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/merchants-companies-cant-store-card-data-from-jan-1-rbi\/","title":{"rendered":"Merchants, companies can\u2019t store card data from Jan 1: RBI"},"content":{"rendered":"\n
What is the News?<\/b><\/h5>\n

Reserve Bank of India(RBI) has directed that no entity or merchant, other than card issuers and card networks<\/strong>, should store card details \u2014 or card-on-file (CoF) \u2014 from January 1, 2022. Simultaneously, it has also extended the tokenisation of CoF by card issuers.<\/span><\/p>\n

Reasons for RBI\u2019s Ban on Storing card data<\/b><\/h5>\n

The merchants, payments aggregators, and even payment gateway players who get to store the card data are not registered with the RBI<\/strong>.\u00a0<\/span><\/p>\n

Hence, the objective of the RBI’s decision is to create a better security framework<\/strong> for digital transactions, which have accelerated post the pandemic.<\/span><\/p>\n

What is the solution then?<\/b><\/h5>\n

RBI has permitted authorised card networks to offer card tokenization services to any token requestor. This will make the card transactions more safe, secure and convenient for the users.\u00a0<\/span><\/p>\n\n\n\n
Read more<\/strong>: RBI permits card-tokenization services in a bid to make card transactions more safe<\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
RBI’s Guidelines on Tokenization<\/b><\/h5>\n

The facility of tokenisation will be offered by the token service providers(TSPs) only for the cards issued by or affiliated with them.<\/span><\/p>\n

Tokenization of card data shall be done with explicit customer consent, requiring additional factor authentication by the card issuer.<\/span><\/p>\n

What is a Card on File(CoF) Transaction?<\/b><\/p>\n

Card on File(CoF) Transaction<\/span> is a transaction where a cardholder has authorised a merchant to store the cardholder\u2019s Mastercard or Visa payment details.<\/span><\/p>\n

Source:<\/b> This post is based on the article <\/span>\u201c<\/b>Merchants, companies can\u2019t store card data from Jan 1: RBI<\/b>\u201d<\/b> published in <\/span>Indian Express <\/b>on<\/span> 8th September 2021.<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"

What is the News? Reserve Bank of India(RBI) has directed that no entity or merchant, other than card issuers and card networks, should store card details \u2014 or card-on-file (CoF) \u2014 from January 1, 2022. Simultaneously, it has also extended the tokenisation of CoF by card issuers. Reasons for RBI\u2019s Ban on Storing card data… Continue reading Merchants, companies can\u2019t store card data from Jan 1: RBI<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[],"class_list":["post-132760","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700780182,"cached_date":1704778656},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/132760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=132760"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/132760\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=132760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=132760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=132760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}