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...

   On July 28, 2022, the RBI issued a notification under Payment and Settlement Systems regarding restrictions on the storage of actual card data: “ No entity in the card transaction/payment chain, other than the card issuers and/or card networks, shall store CoF (Card on File) data, and any such data stored previously shall be purged. ” Let us try to understand the basic flow of this awesome security feature in the simplest form ever.  When making a payment using your credit card on a merchant website, you may have noticed an option to save your card information. By selecting this option, you are giving the merchant consent to tokenize your actual card number and store it. This allows you to avoid entering your full card number again for future transactions. But what if you do not want your card information stored, even if it is tokenized? In that case, you will need to enter your card details each time you make a purchase. This is known as acting as a "guest," hence the...