Visa has introduced a CVV-free feature for tokenised cards in India, streamlining the online transaction process and allowing merchants who implement this feature to only need to verify the three-digit CVV once when tokenising the card, eliminating the need for customers to enter it for every domestic transaction.
What Happened? Tokenisation replaces card details with a unique code, enhancing transaction security while tokenised transactions require two-factor authentication: first at tokenisation and then when entering the OTP.
The process prevents customers from having to input their 16-digit debit or credit card number, CVV, and expiry date at merchant websites for every transaction. This protection against cyber fraud ensures that online merchants only store tokens, not card data, and tokens cannot be used on other merchant platforms.
Visa aims to make the payment experience quicker and smoother by removing the CVV from tokenised card transactions, according to Ramakrishnan Gopalan, Head of Products, India and South Asia at Visa.
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Major merchants like Zomato and payment service providers such as Razorpay are already using Visa’s CVV-free solution.
The move arrives months after Visa temporarily halted its single-click checkout service, Visa Safe Click, for online transactions while the Reserve Bank of India encourages payment players to bolster security standards. Visa Safe Click, launched in 2019, eliminated the need for CVV or OTP for transactions below ₹2,000.
Gopalan stated that if Visa receives regulatory approval, they may explore merging both products, as they both aim to improve convenience. Combining the no-CVV experience with an evolved Safe Click solution would create an extremely seamless payment journey, especially for transactions under ₹2,000.
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