Imagine a world where your Credit Card transactions are not just convenient but also exceptionally secure. This is
possible today because of tokenisation for Credit Cards. As a technology ensuring card data security, Credit
Card tokenisation is rapidly becoming a cornerstone of secure payment processing. Understanding Credit Card
tokenization, its meaning, its mechanics, benefits, and application in your daily transactions, especially with
products like those offered by leading banks.
What is Credit and Debit Card tokenisation?
Tokenisation technology replaces your Credit and Debit Card details with a unique digital identifier, a "token." This
token is used in transactions instead of your actual card details, ensuring payment security across various
platforms. Whether shopping online, using a payment gateway, or making contactless payments, these tokens are
the unsung heroes safeguarding your financial data.
It is not mandatory to tokenise your Credit or Debit Card. But it is advisable because it serves as a protection for
your card details. Let us see how.
What are the benefits of tokenization?
Tokenisation for Credit Cards is like giving your card a digital disguise. It is a smart way to keep your card
information safe every time you use it, especially online. Here's how it benefits you:
1. Safe to use: Imagine your card details as a secret code. Tokenisation changes this code into
something else every time you pay. Even if someone gets this new code, they can't use it, keeping your actual
card details safe.
There are strict rules for keeping card details safe (known as PCI DSS compliance). Tokenisation helps businesses
follow these rules easily, so they can focus on serving you better while keeping your details secure.
2. Easy to use: Even with all this security, your payments are still fast and simple. You won’t
notice any difference – it’s like normal shopping, but safer.
3. Use it everywhere: Whether you’re buying a new game online, shopping for groceries, or even
paying with your phone, tokenisation works in all these places. It’s like a universal safety net for your card.
4. No need for physical card: Once you complete the tokenisation of your Credit or Debit Card you don’t need
to use the physical card every time you need to need to make an online transaction. Since your card details are
saved in a secure manner, you are spared the hassle of keying in details for every transaction.
How does the process of registration for a tokenisation request work?
Registering for Credit Card tokenisation is a straightforward process. It typically involves selecting the
tokenisation service on the merchant's payment page, choosing your card issuer, and authenticating the request
through an OTP or your banking app. Once registered, the tokenisation solution securely stores your card
details, replacing them with a token for future transactions.
Is there any limit on the number of cards I can request for tokenisation?
There's no limit to the number of cards you can tokenise. This flexibility allows you to enjoy the benefits of
tokenisation across all your cards, ensuring a uniform layer of security and convenience.
How do I tokenise my card with an online merchant?
Tokenising your card with an online merchant is a vital step in embracing the security measures encouraged by the RBI
guidelines for Credit Card tokenisation.
Here's a guide on how incorporate key aspects of tokenisation for Credit Cards and its meaning:
1. Selecting the tokenisation option: While making a payment at an online merchant, look for an
option to tokenise your Credit Card. This is usually found at the payment or checkout page where you enter your
card details.
2. Entering Credit Card details: If you are using the tokenisation feature for the first time with a
merchant, you all need to enter your Credit Card details. Rest assured, this information is used only for creating the
token.
3. Authenticating the process: After entering your details, you all undergo a verification process.
This might involve an OTP (One Time Password) sent to your registered mobile number or email, as per the RBI's
secure practices.
4. Generating the token: Once verified, the merchant's payment system will generate a token in place
of your actual Credit Card details. This unique token will be used for your future transactions with that
merchant, ensuring that your real card details are not stored or transmitted, thereby reducing the risk of
fraud.
5. Confirmation of tokenisation: After the token is generated, you will receive a confirmation from
the merchant. From this point onwards, each transaction you make with this merchant will use the token, not your
actual card details.
6. Token management: Most online merchants and payment gateways allow you to manage your tokens,
giving you the flexibility to remove or add tokens as per your preference. It is a simple, one-time setup for
each merchant, enhancing your card's security for future transactions.
7. Enable Credit Card tokenisation feature on UPI
You can also enable Credit Card tokenisation once you have linked your Credit Card on a UPI app. This will
ensure security of your Credit Card on the UPI
apps.
Credit Card tokenization vs. encryption
Credit Card tokenization and encryption are two leading technologies for data protection, each with distinct features.
While encryption converts data into an unreadable format using a cryptographic key, tokenization for Credit Cards replaces sensitive data with unique, randomly generated tokens. These tokens carry no value outside the designated system, enhancing security in case of a data breach.
Unlike encryption, which still risks exposure if decryption keys are compromised, Credit Card tokenization restricts unauthorised access by rendering tokens useless outside authorised systems. For secure transactions, tokenization is a preferred choice, especially in Credit Card processing.
How does Credit Card tokenization work?
Credit Card tokenization involves replacing sensitive card details with a unique identifier or “token” during processing. The token, which contains no exploitable information, is mapped to the original Credit Card data stored securely by the payment provider, ensuring customer data remains secure.
What are some examples of Credit Card tokenization use cases?
Credit Card tokenization is widely used across industries where secure payments are essential. For instance, it’s used in e-commerce checkouts, mobile wallet transactions, and recurring billing systems. By implementing tokenization for Credit Cards, companies protect customer data during Credit Card processing and reduce fraud risks.
Also Read: How to use a Credit
Card effectively and smartly
Conclusion
Embracing tokenisation for your Credit Card transactions is a smart move towards safeguarding your financial data in
this digital age. You are getting enhanced security, seamless transactions, and peace of mind. It's time to make
your financial security a priority, and Axis Bank is here to help you do just that, with its wide range of
Credit Cards.
Frequently Asked Questions
Where will these Credit Card tokens get used?
The Credit Card tokens can be used on any ecommerce platform or online merchant’s website, once you use it for
an online transaction and give consent for tokenisation.
Is there any limit on the number of cards that I can request for tokenisation?
No, you can request for tokenisation for any number of Credit Cards.
What is the benefit of tokenisation?
The benefit of tokenisation is that your Credit Card details are stored safely and you don’t need to key in the
details each time you make an online transaction. You can do online Credit Card transactions without using a
physical card.
How do I tokenise my card with an online merchant?
While carrying out an online merchant transaction using your Credit Card, you will get an option to tokenise
your Credit Card details when you reach the checkout page. If you give consent for the tokenisation of Credit
Card, then you will have to undergo a verification process through additional factor of authentication. Once the
verification is complete, the merchant’s payment system will generate a token in place of the details of your
Credit Card. For every subsequent transaction with that merchant, this unique token will be used and you will
not need to key in your Credit Card details. If you hold multiple Credit Cards, you can select which Credit
Cards you wish to tokenise.
Disclaimer: This article is for information purpose only. The views expressed in this article
are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank
Ltd. and/or 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. Please consult your
financial advisor before making any financial decision.
