Homepersonal finance News

    Customers may soon need to memorise 16-digit card number, here’s why

    Customers may soon need to memorise 16-digit card number, here’s why

    Customers may soon need to memorise 16-digit card number, here’s why
    Profile image

    By CNBCTV18.com  IST (Published)


    RBI's new rules are slated to come into effect from January 2022. After that, platforms like Amazon, Netflix, Flipkart and others will not be allowed to store card details of customers.

    The customers will have to fill in their credit or debit card details like 16-digit number, CVV and expiry date every time they make an online purchase as per the new guidelines of the Reserve Bank of India (RBI). The new guidelines for online payment platforms are expected to come to effect from January 2022. According to the new rules, the online payment platforms will not be allowed to store card details of the customers.
    Though the central bank wanted the new rules and regulations to come into effect from July 2021, it was postponed by six months as majority of the commercial banks were not ready to implement the change.
    These new regulations will prevent payment aggregators, online payment platforms and e-commerce players like Flipkart and Amazon from storing information of a user’s card on their servers or databases. This means that every time a customer makes an online purchase or renews a subscription on Netflix, the details will have to be filled in. This step by the central bank is likely to slow down the process of transactions. However, by preventing such payment portals and e-commerce websites from storing customers’ card information on their servers and databases, the new regulations will ensure customer safety and data security.
    However, as per the new RBI guidelines, the credit card operators will be allowed to store card details for redressals and dispute resolution purposes.
    Since online payment using credit  and debit cards will become more time-consuming, people may shift to a different payment method like the  Unified Payment Interface (UPI). The payment method does not require any such information once the app is linked to a customer’s bank account.
    As of now, the majority of e-commerce merchants and payment gateways store customer data on their servers. They use this stored information to verify and approve transactions, with CVV and OTP being the only requirements.
    If these changes take place on schedule, customers will need to input all the information for each and every transaction. Therefore, it would serve users well to memorise those 16 numbers to smooth out the process as much as possible.
    Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
    arrow down

      Most Read

      Market Movers

      View All