Mumbai: One-click purchases on e-commerce sites may no longer be available for digital buyers with the Reserve Bank of India (RBI) put their fingers on the card data storage norm.
The reason behind the difficult attitude of RBI is a series of ransomware attacks in this country, where computer networks open to the internet have been hijacked by malware.
In terms of new guidelines for payment gateways and payment aggregators, online traders will not be able to store credit card data, force customers to enter their 16-digit number manually.
According to sources, the central bank has said that it will not allow online traders to store debit or credit card information, no matter how safe their system is.
Online business has worked to meet RBI deadlines about repeat payments, which kick from September 2021.
This guideline requires that customer mandates for repeated payments to banks, and online companies cannot with their own debit costs.
The solution, according to RBI, is a tokenization of payment data.
This means that e-commerce sites need to bind with network cards that will issue their ‘tokens’ that are linked to each card number.
This token cannot be used by others.
According to a banker, while this might create a short-term disorder, it will benefit the industry.
“When RBI mandates authentication of two factors, the entire industry rises.
Five years on the road, such as falling fraud, everyone all praise and the same practice is adopted globally,” said a banker.
The reason why traders are interested in storing card information are reducing the number of steps In transactions and thus reducing the number of transaction failures.
RBI’s mandate extends to payment using an integrated payment interface, or UPI, too.
However, the banker shows that UPI has become a ‘token’ as a card and customer details are linked to IDs such as e-mail.