How does it work?
The card issuing banks will offer
the “payment authentication solutions” to their customers on an optional basis.
Opting Customers will go through a one-time registration requiring entry of
card details, etc. and AFA( Additional Factor authentication) by the issuing
bank. The registered customers will not be required to re-enter the card details
for every transaction at merchant locations. The card details already
registered would be the first factor while the credentials used to login would
be the additional factor of authentication.
The AFA requirement for
transactions upto Rs.2000/- for such transactions is being relaxed, subject to:
i.
Only authorised card networks shall
provide such solutions with participation of card issuing and acquiring banks,
ii.
Customer consent shall be taken while
making this solution available
iii.
The relaxation shall be applicable for a
maximum value of Rs. 2,000/- per transaction. Banks and card networks are free
to set lower limits,
iv.
Beyond Rs. 2000/-, the card not present
transaction has to be processed as per the extant instructions,
v.
Suitable velocity checks (i.e., how many
transactions will be allowed in a day / week / month) may be put in place,
vi.
No change in the existing chargeback
process.
Banks
and authorised card networks are also advised to:
i.
Make customers aware that the solution
is an optional facility for values upto Rs. 2000/- only and they are free to
make payments using other forms of AFA,
ii.
Educate the customers about its use,
risk and the mechanism for customer grievance redressal and reporting of
complaints through multiple channels (website, phone banking, SMS, IVR etc.),
iii.
Indicate the maximum liability devolving
on the customer and the responsibility of the customer to report any frauds,
iv.
Bear the full liability in the event of
any security breach or compromise in the authorised card network.
The
authorised card network operators, may also facilitate participation of
cardholders from other authorised card networks, through appropriate network level
arrangements.
Based on RBI circular dated 6/12/2016. For any further clarification
please refer www.rbi.org.in...............Poppy