Credit card

RBI wants you to remember 16 digit debit, credit card numbers, expiration, CVV. Know why

The Reserve Bank of India (RBI) is set in its ways on its revised guidelines on data storage policy. The RBI has rejected the proposal made by payment gateway companies for new regulations that could take effect from January 2022. The revised regulations prevent payment aggregators and merchants like Amazon, Flipkart and Netflix from storing the information. of a customer’s card on their servers or databases. The bank acts as an important link between the client and the aggregators. The new change also means that customers with debit or credit cards will need to enter their 16-digit card number every time they complete a transaction. It will certainly slow down the convenience of it all, but the purpose of this change was to secure the card information and ensure that payment operators do not store the data on the system.

Why you should store these 16 digits on your credit / debit card

If the changes take place from January 2022 as planned, then customers will need to enter their 16-digit card number, along with the expiration date and CVC for each transaction. This will apply whether you do this on a merchant site or e-commerce platform. This will be especially burdensome for customers who have more than one card or have multiple active subscriptions, but ultimately the issue is security and data security. That being said, it would help if you memorize these 16 digits to make the process as easy as possible.

Don’t expect any rewards anytime soon

The entire e-commerce payment model works on stored data; these companies use this data to market new items to customer demographics based on the information they have. This denial of data storage will make it more difficult for them to target their customers with specific offers or offers. Tokenization is a possible fix these players could implement, but that would involve hiding the card details with codes.

Turn to UPI

With more security lengthening the payment or transaction process, UPI could become the most preferred payment method. In recent years, UPI payment methods have become very popular for their quick and easy payment systems. Customers with debit cards might find it much easier to use UPI to pay on merchant platforms.

What changed?

As the new rules are not yet fully in effect, merchant sites and payment gateways allow cardholders to store their data in their databases with only a thin layer of security to verify. Usually this is done with the CVV (card verification value) and a one-time password (OTP). The RBI rejected this and the request for repeal in the new guidelines. The umbrella bank wanted to introduce the new guidelines in July itself, but had to postpone them for six months because the banks were not yet ready for it. The RBI has gone the extra mile to ensure high levels of customer security, as the new rule will prevent payment aggregators from storing customer card details on their platforms that merchants access.

Once the new guidelines come into effect, even authorized card operators will not be able to access data for smooth handling of chargebacks, complaints and problem resolution. Even though the quick and easy process is somewhat hampered, it ensures data security, which is ultimately the ideal standard of operations.

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