Starting January 1, users can shop online on various e-commerce portals without saving debit or credit cards details with the merchant website.

As per Reserve Bank of India’s (RBI) new rules, users can make card payment repeatedly by new process called – tokenization.

This is introduced to prevent risks and misuse of the card details.

What is card tokenization?

Tokenization converts the card details to a unique code or token. This will forbid all online shopping portals from saving the card details.

Customers can either make and save the token on respective shopping portal for future use

How does card tokenization work?

While checking out from the portal, customers should enter the card details and opt for tokenization.

A token will be generated by the respective bank and saved by the merchant for further purchases. One token is limited to one card and online shopping portal.

Users can tokenize the same card with multiple merchants.

Card tokenization is a free service and can be availed by anyone. As of now, it is applicable only to the domestic cards.

If customers renew or replace the existing card, they have to generate a new token.

Watch the accompanying video for more.