FAQs about Tokenization

 

Things you wanted to know about                                   Tokenization

                                                            by Rajeev Pathak

What is a CoF Tokenization?

CoFT stands for ‘Card-on-File’ tokenization.
Tokenization is the process of replacing the actual credit or debit card nymber with a unique number called ‘Token’

What is a Token?

Token is a unique combination of card credentials & token requester i.e., the merchant or the entity that has taken the request for tokenizing.

What are the benefits of a Token?

·                An additional degree of security against frauds.

·        It prevents data breach if a merchant site is hacked.

·        It can also prevent the sale of data by any person who come into contact of your card details. 


Image:Pexels


How to Tokenize your card?

·        Initiate a request on the merchant App/online site at the time of payment checkout or directly tokenizing the card without performing a purchase transaction.

·        Validate the transaction through an OTP

·        Your Credit card/Debit card details will be sent to card networks.

·        The network will issue a token for the card and merchant combination

·        The token will be saved at the merchant’s end for future transactions.

What type of cards are to be tokenized?

All credit cards/debit cards are to be tokenized.

This will also apply to Add-on cards & co-branded cards.

Where the tokens will be stored?

The tokens will be stored by the card networks like Mastercard / Visa & token requesters/merchants.

The token requester or merchant will not store your credit/debit card credentials.

Whether one token will be enough for all merchants?

No, A Token is a combination of card credentials & merchant’s ID. For example, if we obtain a token for Amazon, it will not work for Flipkart.

Is Tokenization mandatory?

No, it is not mandatory.

But, you will need to feed your card credentials ezch time as merchants are not permitted to save your card data.

How to de-tokenize?

You can de-tokenize your card as and when you desire by deleting the token through the metchant’s website/App.

Whether the same token will apply for renewal card?

At the time of the renewal, you will be given a list of tokens issued on your card. You may continue, or delete a token.

How will the tokens will be used?

Once a token is created, you will use the token in lieu of your actual cardnumber at the merchants’ site.

Whether a token will be necessary for POS?

No, a token is to be used only for e-commerce site /App for an on-line transactions. For POS where you generally swap your card, no token will be required and you will use the card as before.

Is there any fee for tokenization?

No, there is no fee. No merchant can charge you for this facility.

PS: The above script is the compilation of the English sub-titles of my earlier released Hindi video on the subject. The link of the video is given here for those who are interested to view the same.

https://youtu.be/pHLhWw30Tyw


Contact: boirajeev@gmail.com

WhatsApp: +919909022489


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