Tokenization of Debit/Credit Cards: A New Security Layer Definition, Types, Examples & Uses

Tokenization of Debit/Credit Cards: A New Security Layer

Subject: Static GK (General Knowledge)

Book: Indian Money Knowledge

Tokenization replaces sensitive card details with an encrypted “token” for online transactions, reducing the risk of data breaches. Mandated by RBI, Indian e-commerce sites and payment gateways are adopting tokenization to strengthen consumer protection. Students and shoppers benefit from safer digital payments, though they should update existing accounts or saved cards accordingly. Keeping track of tokenized cards and ensuring device security fosters a hassle-free shopping experience with minimal fraud exposure.