New Click here to Enroll in NaBFID Analyst Intro Class on May 6

    Question

    RBI recently extended the card-on-file (CoF)

    tokenization deadline by 6 months to June 30, 2022. Which of the following correctly describes CoF tokenization?
    A Instead of Plastic cards, customers will be given token for their Savings Accounts Correct Answer Incorrect Answer
    B 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. Correct Answer Incorrect Answer
    C Tokenisation refers to replacement of actual credit and debit card details with an alternate code called the “token”. Correct Answer Incorrect Answer
    D a & b Correct Answer Incorrect Answer
    E b & c Correct Answer Incorrect Answer

    Solution

    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. 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. This could be cumbersome exercise and may impact transaction value, especially when done through stored cards. In case of multiple cards, each will have to be tokenised.

    Practice Next