RBI seeks to stem credit/debit card fraud, makes online payments more secure

RBI has taken this step for additional security of online transactions and to control and prevent credit card frauds.

The latest guideline requires the cardholder to obtain a 3D-Secure password to transact with any 3D-Secure merchant sites in India.

The process of obtaining the password is, however, not intimidating. All one needs to do is log onto his/her bank's website or contact them to complete the one-time registration formalities which includes issuance of a password that will be known only by the cardholder. This password during the registration process will be needed whenever the cardholder makes an online transaction thereafter.

After August 1, 2009, if a cardholder attempts to make any online transaction which requires payment to be made by debit or credit card, the cardholder will be directed to enter his/her card details during the payment process, following which he/she will be redirected to his/her bank's VBV/ Master Card Secure authentication page where the cardholder will be prompted to enter the 3D-Secure password.

Upon successful authentication, the cardholder will be redirected back to the website where he/she had made the transaction.

Currently, in India, there are close to 50 million credit card holders and 300 million debit card holders and with August 1 deadline round the corner, banks are racing against time to enable their customers to obtain the passwords.

While some banks are allowing customers to create passwords on their websites, others are busy sending fresh user IDs and passwords to customers via post. Some banks like Citibank are also allowing customers to use net banking password or PIN number as their password for e-commerce transactions.

"We have already started the process of making the consumer aware of the service using text message alerts, e-mails and advertisements. Having started the process much ahead, we are well equipped to implement the process fully," an ICICI Bank spokesperson said.