A token that is generated by the card network and delivered back to the shop will replace the 16-digit card number.

The retailer will keep a record of this token for next transactions. In order to approve, they will once again need to input their CVV and OTP.

New regulations governing card-on-file (CoF) tokenization by the Reserve Bank of India (RBI) will modify how debit and credit card payments can be made online.

In order to prevent fraud and the use of consumers' stolen credit cards, the RBI rule forbids any platforms from saving card details of the users.

Nevertheless, it was put off until October 1. The change is anticipated to enhance cardholders' payment experiences and boost security against payment fraud.

 Card-on-file (CoF) refers to credit card or debit card information, such as the card's number, expiration date, and name..........

.......that has been saved in a database by a payment gateway and a merchant to be used for upcoming transactions.

The RBI website states that tokenization entails replacing actual card information with a different code known as a "token,".......

.......which must be distinct for each of the following: the card, the token requestor, the card network, and the device.

By starting a request on the app that the token requestor has provided, the cardholder can have their account tokenized.

 The token requestor will send the request to the card network, which will provide a token matching the combination of the card.