Mastercard introduces CVC-less payments on merchant platforms in India
By Gloria Mathias
Mastercard has announced the introduction of a Cardholder Verification Code (CVC)-less online transactions for its debit and credit cardholders who have tokenized their cards on merchant platforms.
The move aims to reduce the checkout time and make virtual transactions hassle-free and more secure.
CVC is the three-digit number printed on the back of debit and credit cards. According to the Reserve Bank of India’s tokenization guidelines, merchants who adopt tokenized payments will collect CVC only once while tokenizing the card. From the second transaction onwards, cardholders will be required to select their tokenized card from the checkout page, confirm the one-time password (OTP) and complete the transaction without keying in CVC.
Several eCommerce firms like Cashfree Payments and Zomato have already adopted CVC-less payments. By eliminating the need for CVC, merchants can expect benefits like higher authorization rates, reduced checkout abandonment, and enhanced customer payment experience.
“We are excited to introduce CVC-free payments, which reduce friction for cardholders, aligning their payment experience with other popular modes like UPI Intent. At Cashfree Payments, our vision is to consistently innovate and create solutions that make digital payments faster, safer, and more convenient,” said Akash Sinha, CEO and Co-Founder, Cashfree Payments.
“Mastercard is committed to delivering innovative and secure payment solutions that protect both merchants and consumers. Besides enhanced data security, CVC-less payments on tokenized cards come with benefits that make the online domestic card payment experience smoother and safer,” noted Anubhav Gupta, Senior Vice President, South Asia, Mastercard.
It’s noteworthy that the issuing bank performs account identification and verification during token provisioning, adding extra safety to the transaction process.
With the launch of CVC-less payments, the company has reiterated its commitment to providing a safe and seamless payment experience for Indian merchants and cardholders.
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