The Reserve Bank of India has announced new rules for online transactions by debit card and credit card. Under the new rules, it is mandatory to provide a 16-digit card number, CVV number, and expiry date at each online transaction.
The move is in the interest of the Bank’s customers. In that article, we are going to look at how effective this move by the Reserve Bank can be in that regard.
What details should be given?
Also, service companies should not store information including RBI customers’ debit cards and credit cards. It was sufficient if a customer had previously given the CVV number and OTP. But now it is mandatory to pay the full card 16 digit number and expiry date, including the CVV number.
Security is important on the one hand
Thus while online transactions may be delayed, customer security is seen as a key aspect. The announcement is expected to help reduce debit and credit card fraud.
When is the procedure?
It has been announced that this new procedure of the Reserve Bank will come into effect from January 2024. So after that, you need to keep in mind that these details may be required for every transaction you make online by debit card or credit card.
Crimes may decrease
As online retail sales through e-commerce companies increase today, so does the online transaction. More and more transactions are taking place, especially by debit card and credit card. As a result, many fraudulent incidents are taking place. So this move by the Reserve Bank may lead to a further reduction in crime
Security for customers
Because online companies can not store your information as before, there is no risk of information being stolen. Experts believe that online shopping can be done safely in the future. So often it can be very helpful information for those who shop online
Public safety
Assuming Action The Reserve Bank continues to take a number of steps to ensure the safety of its customers. Recently, all credit and debit cards that are currently offered are made with a magnetic strip and are offered worldwide. But from 2024 this magnetic stripe will be offered as an option to banks or customers. It has been announced that the use of magnetic strips will be phased out by 2029. It is noteworthy that this measure was taken considering the safety of the people.
Credit – MasterCard plans to remove the black bar on the debit card ..!
MasterCard, the world’s largest credit card and debit card company, plans to increase security on money transfers, remove the old swipe system and completely eliminate the magnetic band on credit-debit cards within the next 10 years.
First Payment Network
The magnetic stripe is available on credit and debit cards since MasterCard first introduced its payment network in 1960.
Magnetic bar
It is on this magnetic band that banks record customer data and track money transfers. But today with the fast-growing card technology this magnetic strip has now become completely unnecessary
Digital Payment Market
In the fast-growing digital payment market worldwide, it is imperative to innovate and improve security features if the card payment system is to remain in place.
Card Technology
Today’s card technologies such as contactless payments, microchips, biometric, and other new services must be brought into use. MasterCard has announced that the Magnetic Bar is currently reaching its expiration date.
Beginning in 2024
All current credit and debit cards are manufactured with the Magnetic Bar and are offered worldwide. From Anas 2024 this magnetic strip will be offered as an option to banks or customers. The use of magnetic strips will be phased out by 2029.
Extra security
Chip cards have more security features than magnetic stripe cards, and such cards generate a unique transfer number in the bank each time money is transferred.
Information theft
After all, counterfeiting chip cards can be very debilitating and can save people money. Chip-based credit card data can also be protected from hackers.
