About Card-on-File Tokenisation:
- Tokenisation refers to replacement of actual credit and debit card details with an alternate code called the “token”, which will be unique for a combination of card, token requestor and device.
- This shall be unique for a combination of card, token requestor (i.e. the entity which accepts request from the customer for tokenisation of a card and passes it on to the card network to issue a corresponding token) and the merchant (token requestor and merchant may or may not be the same entity).
- Advantage: A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing.
- Customers who do not have the tokenisation facility will have to key in their name, 16-digit card number, expiry date and CVV each time they order something online.
What is Card-on-File transaction?
- It is transaction where in cardholders authorizes merchants to store their payment information securely and bill cardholders’ stored accounts for future purchases.
