Visa, the global card payments company, has introduced a new feature in India that eliminates the need for customers to enter their cardholder verification value (CVV) during online transactions, if the card has been tokenised. This feature aims to simplify the online transaction process and enhance security.
Tokenisation is the process of masking card details with a unique code to make transactions more secure. With tokenisation, merchants need to verify the CVV only once, during the tokenisation process. Tokenised transactions are two-factor authenticated, first at the time of tokenisation and later when the one-time password (OTP) is entered.
This feature is expected to streamline the transaction process for customers and merchants alike, as customers will no longer need to enter details such as the 16-digit card number, expiry date, and CVV every time they make a transaction. By replacing these details with tokens, online merchants can provide greater security to customers, as their card data will not be saved by the merchants, but only the tokens. Additionally, the same token cannot be used on other merchant platforms, further enhancing security.
Leading merchants, such as Zomato, and payment service providers, including Razorpay, have already adopted the new feature from Visa. This innovation is expected to benefit not just consumers and merchants, but also the broader digital payments ecosystem.
According to the Reserve Bank of India, digital transactions in the country reached a record high of 5.96 billion in December 2021, with a total value of INR 8.53 trillion ($116 billion). With such a massive volume of transactions, innovations like the CVV-free feature from Visa are expected to play a significant role in ensuring the security and convenience of online transactions.
The introduction of the CVV-free feature by Visa in India is expected to encourage other players in the payments ecosystem to introduce similar innovations, as the industry seeks to provide seamless and secure payment experiences to customers.
