Everything to Know about Card Tokenisation
In today's world, one can buy almost anything online, from clothes and groceries to medicines. This convenience has made it possible for people to have their desired items delivered directly to their doorstep. It is also very easy to pay for online purchases using the internet.
The online world can be dangerous. One often hears stories of fraud and scams that result in significant financial losses.
With Card Tokenisation, banks put up a protective barrier between their account holders and third parties.
What is Card Tokenisation?
When paying for anything purchased online, one has to provide the card details to complete the process. Tokenising one's card means that the card details will neither be revealed to nor stored by the vendor. Instead, the bank creates a unique and secure digital code or 'token', which helps complete the transaction.
How Does Card Tokenisation Work?
The payment portal one uses needs the card and bank details to be filled in. When one initiates an online payment with the portal, it sends a token request to the card network. The bank creates a token and provides it to the 'requester' - the payment portal. The merchant receives this token and the transaction goes through.
Consider the following example -
- You place an order with an online vendor and a payment request is made to you.
- You are redirected to Google Pay - the requester - to complete the payment, where you have to enter your card details and select the secure payment option.
- Google Pay will then request your card network (VISA, Mastercard, Rupay, etc.) for a token for your card.
- This token is sent to the merchant.
- The merchant sends the token to their bank and saves it for future purchases.
- There are no extra steps on your end of the transaction.
- The entire process of tokenisation is carried out in the background by the various financial agents used for payment. This process stays the same for both Credit and Debit Cards.
Conclusion
Most people love to shop for new things. Getting to do this from the comfort of their homes is the cherry on top of the cake.
However, it is just as important to safeguard one's online financial presence. This is exactly what Card Tokenisation offers, without one having to do anything extra. Simply have a safe shopping spree!
At Federal Bank, the security and convenience of customers are paramount. For any more information or assistance, feel free to have a chat with the Virtual Assistant 'Feddy'. Visit the Federal Bank website and explore the Card Tokenisation service.