Neeraj Singh

Card networks aim to enhance domestic card-not-present (CNP) (ecomm) tokenized transactions by making them faster, safer, and more secure. With tokenization, merchants processing transactions on credit cards no longer need to collect CVV for domestic online transactions initiated with tokenized credentials. CVV is only required during initial token provisioning. Once it is Tokenized, the Token along with the Cryptogram serves the purpose. 1/ Tokenized transactions use two factor authentication and encrypted tokens, replacing actual card details. 2/ They are secured with a Token Authentication Verification Value (TAVV) cryptogram for cardholder initiated payments. 3/ Since card networks (e.g., Visa, MasterCard, RuPay) do not transmit CVV to the issuing bank, it cannot be verified, and transactions proceed even if an incorrect CVV is entered. 4/ This approach reduces user friction and increases convenience, as CVV verification is deemed unnecessary for tokenized cards, given the enhanced...

Problem Statement: As a customer, whenever you saved your card in the early days, merchants used to save this data in an encrypted format and use it whenever you visited the merchant website again. But in the past, there have been many instances of data theft. Solution: RBI proposed a solution to tokenize card details so that the original card information cannot be used. RBI mandated that no one apart from the issuer and card network can store the data. Not only this, they also required all existing card details to be deleted. Who can Create the Token: It is formally referred to as the TSP (Token Service Provider). A TSP can either be the card network (Visa, Mastercard, Amex, Diners, etc.) or the issuer. The most commonly used TSP currently is the card network. Storing of the Card Details (Original PAN): Apart from the card network and the issuer, no one in the payment chain is allowed to store the original card number (PAN). Token Provisioning: You visited Amazon.in (the merchant webs...

  While making an online payment, have you ever seen any of the above logo on the OTP page, depending on the card network you use? Visa - Verified by Visa Mastercard - Mastercard SecureCode American Express (Amex) - Safekey Discover and Diners Club International (DCI) - ProtectBuy Have you ever wondered what these mean? All of them are the proprietary names given by their own networks. Basically they are the 3D Secure protocol.😀 Let us decode them today in this article in the simplest form possible (only functional). I will explain the step-by-step transaction flow of eCommerce / Card Not Present (CNP) / Online transactions. When you see any of the above logo on the web page where you are making a payment, it means that your transaction is protected by the 3D Secure protocol. This security protocol adds an additional layer of authentication for online transactions to reduce fraud. If a transaction has happened on 3D Secure protocol, then in case of Chargeback, liability is shifte...