RBI eases authentication norms for online card payments up to Rs 2,000
Mumbai, Dec 6 (IANS) In a bid to ease online card payments, the Reserve Bank of India (RBI) on Tuesday relaxed the authentication norms for payments up to Rs 2,000.
“To meet the objective of customer convenience with sufficient security for low value transactions, the card-issuing banks will offer the payment authentication solutions of the respective card networks to their customers on an optional basis,” RBI said in a statement here.
Customers opting for this facility will go through a one-time registration process requiring entry of card details and additional factor of authentication by the issuing bank. Thereafter, the registered customers will not be required to re-enter the card details for every transaction at merchant locations that offer this solution and, thereby, save time and effort.
The card details already registered would be the first factor while the credentials used to login to the solution (as confirmed by the card network providing the solution) would be the additional factor of authentication.
“The relaxation for additional factor of authentication under such solutions shall be applicable for card-not-present transactions for a maximum value of Rs 2,000 per transaction across all merchant categories. Banks and card networks are free to facilitate their customers to set lower per transaction limits,” it said.
Only authorised card networks shall provide such payment authentication solutions with participation of card-issuing and -acquiring banks, it added.
“Customer consent shall be taken while making this solution available to them,” RBI said.