No need to remember 16-digit card number for online payment: PCI

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The representative body for payment companies in the country, the Payments Council of India (PCI), has said that the customers will not have to remember the 16-digit card number for online payments with effect from January 2022. The industry and PCI are working along with the Reserve Bank of India (RBI) to develop secure card on file solutions that will ensure a similar customer experience for online purchases. The solution is likely to enhance the security of the storage of card credentials of customers.

RBI had issued a notification for payment system providers and participants on March 31, 2020. As per the notification the providers have to put in place workable solutions such as tokenization for enhancing the security of the storage of customer’s card credentials. The solution is required to follow the framework of the relevant guidelines issued by the RBI.

The principles which can be adopted by the industry for developing such a secure card on file solution has been shared by PCI to the RBI.

“We are working closely with RBI on charting a roadmap of the possible solutions that could be adopted by the industry for securing the storage of raw card data. Solutions being worked upon, would not require the customers to enter their card number manually every time they make an online purchase” said PCI.

“The solutions will adhere to the security checks and controls and frameworks prescribed by RBI”, it further added.

RBI has played a key role in enhancing the security of card transactions. For instance, in tightening the security of cards, introducing the requirement of AFA in 2009, tackling the risk associated with data storage or breach effective January 2022, etc.

The apex monetary institution has also played a catalytic role in the development and growth of digital payments across the country thereby progressing towards the goal of a “less-cash society”. It has set out guidelines and circulars for the effective functioning of the payment systems with a focus on security controls. RBI has over time published several guidelines on the security of card transactions, as cards are right now one of the most accepted forms of digital payment.