RuPay introduces CVV-less card payments: How it works
Checking the CVV (card verification value) before making any payment is one of the hassles associated with credit or debit cards. India's homegrown card network Rupay has a solution for this: CVV-less payments. This would mean cardholders can make payments without reaching into their wallets. Let's see how RuPay's CVV-less payment works.
The feature is only available on tokenized cards
Rupay's CVV-less payment experience is available to credit, debit, and prepaid cardholders. The feature is only available to those who have tokenized their cards on the merchant application or webpage. The new measure comes after RuPay introduced on-file tokenization for domestic e-commerce transactions last year. Tokenization secures card transactions without sharing clear or real card details with merchants.
What is tokenization?
Tokenization is the process through which actual card details are replaced with a unique digital code. To tokenize a card, a cardholder has to first authenticate a transaction by entering card details (card number, CVV, expiry date) and then the OTP. Once they do that, the card is tokenized and saved with a merchant. This improves the security of the card.
Cardholders only have to enter OTP to complete transactions
Once a card is tokenized, customers can use RuPay's CVV-less experience for subsequent transactions. All you have to do is enter the OTP to complete transactions. If customers have the auto-read OTP feature enabled, this will be a seamless experience.
The feature has been launched in partnership with RazorPay
National Payments Corporation of India (NPCI) has launched the CVV-less experience in partnership with RazorPay for a limited group of merchants, including Rapido and Porter. It is working with other major payment aggregators/gateways such as PayU, CyberSource, and Paytm to introduce the feature to other merchants. If more merchants support the feature, RuPay cardholders may not have to remember any details about their cards.
The vision is to ensure effortless payments: RuPay head
"Our vision has always been to ensure effortless payments for all our RuPay card holders without compromising on the security aspect," said Denny Thomas, head, RuPay. "Having worked with the payments industry extensively for implementation of Card on File Tokenisation, which ensures utmost security of sensitive card information, now we are aiming at making the payment experience of a tokenized card seamless," he added.
