Card tokenisation deadline approaching: Problems debit, credit card users may face from Oct 1

With the extended card tokenisation deadline ending on September 30, 2022, unless extended further, the users may face inconveniences from October 1, 2022 as the card details will be deleted from merchant databases.

Here are the problem you may face from October 1, 2022:

Stopping of auto bill payments

With the card data deleted from the merchant database on September 30, 2022, your standing instructions to pay bills etc will become void and auto bill payments will stop.

Entering card details while paying

With auto bill pay facilities stopped, you have to remember the dates of bill payments and manually enter all the details of a card every time you make a payment online.

However, deletion of card details from the merchant databases will make your cards more secure.

“Tokenisation thus adds an extra layer of security to the consumer’s card credentials as they are not saved by the merchant,” said Mandar Agashe, Founder, Sarvatra Technologies Ltd.

The Remedy

To avoid the hassles of remembering bill dates, amounts and entering card details every time you make payments online, you have to visit the official websites of the merchants and re-enter the card details in tokenise format.

“With tokenisation implemented, card details will no longer be saved by the merchant (card on file) from October 1, 2022, and therefore one will need to tokenize one’s card on the corresponding merchant website or app. When a consumer selects a save card at a merchant checkout page, the process will typically entail filing one’s card details, followed by verification via OTP after which a token will be generated for that card for that particular merchant which the merchant can store for future use by the customer. Once the token is generated, one can continue making payments without entering the card details again on that particular merchant platform by selecting the card for which the token has been created and stored by the merchant previously, ”said Agashe.

However, in case you don’t want to go for tokenisation and want to enter details of your cards at the time of individual payments, you may do so.

“While the practice is not mandatory, it is highly recommended as an essential service that every consumer should avail in order to protect his data which is otherwise exposed while undertaking a card transaction. However if a consumer does not wish to save the card with a merchant then the consumer has to enter the entire card data every time during the check out for that particular merchant which can become inconvenient. Therefore tokenisation adds security as well as convenience to consumers, ”said Agashe.

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