Tokenisation

Tokenisation

Subject: Science and Technology

Concept:

Tokenisation refers to replacement of actual card details with an alternate code called the “token”, which shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and device (referred hereafter as “identified device”).

• Conversion of the token back to actual card details is known as de-tokenisation.
• A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing.
• The card holder can get the card tokenised by initiating a request on the app provided by the token requestor. The token requestor will forward the request to the card network which, with the consent of the card issuer, will issue a token corresponding to the combination of the card, the token requestor, and the device.
• The customer need not pay any charges for availing this service.
• Tokenisation has been allowed through mobile phones and / or tablets for all use cases / channels (e.g., contactless card transactions, payments through QR codes, apps etc.).
• Tokenisation and de-tokenisation can be performed only by the authorised card network.
• Normally, in a tokenised card transaction, parties / stakeholders involved are merchant, the merchant’s acquirer, card payment network, token requestor, issuer and customer. However, an entity, other than those indicated, may also participate in the transaction.
• Actual card data, token and other relevant details are stored in a secure mode by the authorised card networks. Token requestor cannot store Primary Account Number (PAN),, card number, or any other card detail. Card networks are also mandated to get the token requestor certified for safety and security that conform to international best practices / globally accepted standards.
• Customers have the option to register / de-register their card for a particular use case, i.e., contactless, QR code based, in-app payments, etc.
• A customer can request for tokenisation of any number of cards. For performing a transaction, the customer shall be free to use any of the cards registered with the token requestor app.
• Customers have the option to set and modify per transaction and daily transaction limits for tokenised card transactions.
• All complaints should be made to the card issuers. Card issuers shall ensure easy access to customers for reporting loss of “identified device” or any other such event which may expose tokens to unauthorised usage.