India’s homegrown card network RuPay is rapidly growing with millions of people using RuPay debit and credit cards in our country. In 2021, according to the RBI guidelines, RuPay started with Card on File Tokenization for domestic E-Commerce transactions, in order to make them safe and secure for cardholders.

Recently, RuPay introduced CVV free payments in order to improve the payment experience for customers. This is available only for cardholders with tokenized credit cards on merchant webpages or application. In tokenization, credit card transactions are secured as the customer does not need to share his real card details to merchants.

In this article we will read about how the CVV-less payment works on tokenized RuPay cards and other information related to it.

RuPay Introduces CVV Free Payment Experience for Credit Cardholders Post

How Does the CVV-Less Payments Work?

Whenever a cardholder has to save their credit card details for a domestic online transaction, they have to authenticate it using the credit card number, card expiry date, and CVV number once, followed by the OTP sent to their registered mobile number. All these card details are tokenized and saved by the merchant for future transactions. As there are no real card details saved by the merchant, cardholders are safe from cybercrime and fraud.

Once the card details are tokenized for a merchant, the customer can make all future transactions just through the OTP and there is no need to enter the card details again. If the cardholder has enabled the auto-read OTP feature on their device, then the payment experience gets even better and convenient.

RuPay, along with RazorPay, has made this feature live for Porter, Rapido, etc. and is actively working with Firstdata, Paytm, PayU, CyberSource, and other payment gateways to bring this feature to other merchants as well.

How Does CVV-Less Payments Benefit Cardholders

The new CVV-less payment system makes sure that the customer does not have to pull out their credit card everytime or remember all the card details to make transactions. If their card is tokenized with an E-Commerce merchant, they can make CVV-less payments conveniently. Only the OTP is required and their device can even auto read the OTP making the payment experience seamless.

RuPay strives to make payments better for cardholders without any sacrifice with their safety and security. After implementing Card on File Tokenization that ensures the security of credit card information, work is now being done to make CVV-Less payments with tokenized cards simple.

Bottom Line

The NPCI has always aimed to innovate the retail payments systems using latest technology in order to make India a completely digital economy. There was a rise in cybercrime and online fraud during E-Commerce transactions, and with the CVV-Less payment system on Tokenized cards, cardholders can make online transactions in a secure and safe manner.

Customers just need to enter their card details once on the merchant website and this information is tokenized. They can make all future payments to the merchant just using their OTP and without the need to enter confidential card details again. This secure technology will surely help a lot of customers and help India become a fully digital society.

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