#coft — Public Fediverse posts

They can cross-relate transactions between the merchants and the card tokens they store to conduct data analytics. Is this permitted? Is this regulated?

#CoFT #SaveOurPrivacy #DigitalPayments

#CashlessConsumer #CoFT https://themorningcontext.com/internet/inside-the-chaotic-race-to-tokenize-cards

Biggest issue with the tokenization model is there are grey areas in terms of regulatory oversight.

It is important to note that #RBI has allowedt third parties like #JusPay to store card details and act as #CoFT service provider - with no checks and balances.

For example - the same #JusPay lost card details to a databreach. https://www.hackread.com/juspay-data-breach-card-data-sold-dark-web/

I was on merchant site where I had previously stored my card details. From Jan 2022, since the #CoFT guidelines kick in, the merchant has to tokenize the card to continue providing faster checkouts to me complying with #RBI regulations.

Just like how #RecurringPayments created new intermediaries #SIHub #MandateHQ for processing mandates, #CoFT introduces new intermediaries when you want to use "Saved Cards" from any merchant. #JusPay is one such #CoFT service provider.

While initially this meant that only card networks (besides your own bank will have full card number), #RBI wide September 07, 2021 permitted #CoFT Service Providers.

https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12159

#CashlessConsumer #CoFT aka Card on File Tokenization - implementation by #JusPay for several merchants - where #Consent is taken without providing *any* details, except saying "RBI Guidelines" and using the word "Secure" in misleading way 🧵