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  • How returns of Post Office Schemes outperforming bank FDs

    In the recent two months, the RBI increased interest rates by 90 basis points in two tranches, which led to an increase in the interest rates on short-term deposits by banks and post offices. Interest rates on bank fixed deposits are lower than those on post office plans in comparison. The interest rates on post office schemes like the Senior Citizen Savings Scheme (SCSS), Public Provident Fund (PPF), and Sukanya Samriddhi Yojna are much lower than the interest rates on fixed deposits offered by leading banks like SBI, ICICI, HDFC, Axis Bank, PNB, BoB, and others. Therefore, consumers seeking higher returns than bank FDs in the current interest rate environment may want to think about the following post office savings plans for long-term investments. Senior Citizen Savings Scheme (SCSS) Among NPS and PMVVY, the Senior Citizen Savings Scheme (SCSS) is a popular investment choice for senior citizens looking to outperform fixed deposits. It is a small savings scheme. An SCSS account can be opened by senior citizens, retired civil servants who are over 55 but under 60, and retired military people who are over 50 but under 60. Public Provident Funds (PPF) Due to its exempt-exempt-exempt (EEE) status, PPF is one of the most well-liked investment solutions for long-term investors. A PPF account can be opened by a single resident adult Indian or a guardian on behalf of a juvenile or someone who lacks capacity with a minimum deposit of Rs 500 and a maximum yearly commitment of Rs 1.5 lakh. Investors should be aware that deposits qualify for section 80C of the Income Tax Act deductions. Investors can currently earn 7.1 percent annual compound interest on deposits with PPFs, which have a 15-year maturity period. Sukanya Samriddhi Yojna (SSY) The goal of this post office programme is to help parents save money for their daughter's future. According to the phrase, guardians may open SSA accounts on behalf of their girl children who are younger than ten, however only one account may be opened in India in a girl's name for a household with up to two daughters. A minimum deposit of Rs 250 and a maximum deposit of Rs 1,50,000 are required to start an SSA account, and deposits may be made for up to 15 years after the account is first opened. Under Section 80C, Sukanya Samriddhi Account deposits are tax deductible up to Rs. 1.5 lakh annually. When choosing such policies, one must be aware and cautious because insurers may also provide other types of life insurance plans under the guise of income insurance.

  • Income Protection Insurance

    We all put in long hours at the office in order to advance in our careers, increase our take-home pay, and accumulate a larger nest egg for our loved ones.  Protecting your family's financial well-being while you're away is made possible with the help of salary protection insurance, also known as income protection insurance. In addition to a lump-sum payment, this type of term insurance coverage usually offers a regular income payout option. At the time of purchase, the policyholder will have the option of dividing the total value assured between regular income and a lump payout. As a result, anyone who is considering purchasing this insurance should be aware that it is a term policy that does not provide any benefits at the end of the term period. An assured death benefit (a one-time payment) will be provided to the nominee if the policyholder is no longer alive. It works like this: Take a look at yourself as a potential buyer of the term insurance policy for income protection. Choosing a monthly income for your family member after your death is an option that must be made at the time of purchase. Your monthly take-home pay may be less than this, or it may be the same. After that, you'll need to decide on a policy and a payment schedule. For example, you can get a 15-year coverage for a regular premium payment term at the age of 30 (for nonsmokers). The insurer will determine the percentage increase in the monthly income that the policyholder selects. It's possible that the insurance company will provide a 6% annual compounded rise on this revenue, which would mean that the monthly premium would be 106% the previous year's income each policy year. Let's look at an example to better understand: So, let's take the Rs. 50,000 monthly salary as an example. It will rise to Rs 53,000 a month in the second year, then to Rs 56,180 the following year, and so on. Suppose the policyholder dies on the first day of the fifth year of the policy term. The nominee would receive Rs 7.6 lakh in death benefits and an additional Rs 63,124 in monthly income as a result of this plan. (12 times the higher monthly income in the fifth policy year) X 63,124 = Rs 757,488 (assured death benefit). As long as the insurer's terms and conditions are met, they will continue to pay them the monthly benefit. One must be careful, however, because insurers might also market other types of life insurance policies under the label of salary protection.

  • No TDS on Crypto and Virtual Digital Assets in these cases

    Virtual digital assets (VDAs) and cryptocurrencies would be taxed according to a circular released by the tax department. Since the first of July, TDS's revised regulations for VDA and crypto have been in effect. If you buy a virtual digital asset (VDA) from a resident Indian, you must deduct 1% of the amount you pay from the amount you pay the seller (resident Indian) (TDS). Regardless of when the amount is credited or when it is paid to the resident individual, the tax must be deducted. The Central Board of Direct Taxes (CBDT) has said that the tax will only be deducted if the amount paid exceeds the set maximum. The TDS, on the other hand, will only be applied if the transaction value exceeds a predetermined threshold. A single transaction or a series of transactions can exceed the limit. So, when does TDS not apply to the purchase and sale of VDAs and cryptocurrencies? Income tax laws state that the TDS on bitcoin, VDA isn't relevant when an individual pays less than Rs 50,000 throughout the financial year, or when an individual pays less than Rs 10,000 when no "designated person" is paying more than that. When it comes to the Income Tax Act, who is considered a "specified person"? "Specified Person" is defined in Section 194S of the Income Tax Act, 1961. a) One who has no income from "profits and gains of company or profession," whether an individual or Hindu Undivided Family (HUF) . b) A person or a Hindu Undivided Family (HUF) who has income under the heading "profits and gains of business or profession" is eligible. During a given financial year, he or she does not make more than Rs 1 crore in sales/gross receipts/turnover from the businesses he or she is involved in.

  • Emergency Funds with Sweep in Facility

    When a disaster comes, a house made of basic bricks is entirely ripped apart. One can only be safe in a house with a solid foundation and cement walls. An emergency fund is all about creating a solid foundation and sturdy walls to protect your finances in the event of a financial disaster. People's wallets have been ripped open by inflation, from tiny businesses to large corporations. More than a dozen companies have announced layoffs in recent weeks. For this reason, it's a good idea to have a well-stocked emergency fund in case you become the next victim of the financial crisis. Ideally, a emergency fund should be risk-free and easy to access. Debt funds have both of these qualities. Sweep-in Fixed Deposits are one of the many alternatives available to investors looking to invest in debt instruments, but today we'll focus on one particular type of investment (FDs). Sweep-in FDs: Sweep-in FDs, as the name suggests, are a type of savings account where you deposit any unused cash. To illustrate my point, I'll use an example. Let's say you need a minimum of Rs. 40,000 in your bank account to cover discretionary spending, and you receive an additional Rs. 10,000 in credit from someone else. You will now have a balance of Rs. 50,000 in your account. Sweep-in FD is a feature that allows you to automatically deposit the surplus cash, in this case Rs.10,000, into your FD account. These products offer a penalty-free, anytime withdrawal option. You don't have to take out a loan from your FD to meet your short-term financial needs. Your interest will not be affected if you borrow money at any time. As a result, these funds are ideal for covering short-term emergencies. This facility, on the other hand, is not open to everyone. In order to use the service, investors must have a minimum of Rs. 25,000 invested or have a balance of Rs. 25,000 to Rs. 1,00,000 in their Fixed Deposits.

  • Post-pandemic adaptation strategies for Family business

    Various businesses and sectors have been affected by COVID-19's volatility and economic effects. The effects of COVID-19 are severe, and everyone is still feeling the effects of the epidemic, from significant changes in the financial markets and gold prices to job losses and disruptions of company operations. In such unpredictable and difficult times, family enterprises and small company owners generally display great levels of resilience. However, companies may lessen the impact of COVID-19 and the economic slowdown even further with some forward planning and a well-thought-out strategy. Here are a few ways family-owned businesses are adjusting to the new norm: When making decisions, be inclusive One of the most important commodities in successful governance is trust. When faced with difficulties like the epidemic, you should frequently take advantage of your workforce's collective expertise. You may cover enough territory and eliminate any dangers via oversight by incorporating some of the major stakeholders in your firm when making significant choices. Additionally, it promotes a culture of openness and cooperation, both of which are critical in a circumstance where everyone must work together. Protecting liquidity Maintaining adequate amounts of cash is one of the most crucial aspects that may keep family businesses afloat in difficult times. Make sure you are improving your balance sheet the appropriate way to prepare yourself for any future turbulence. To accelerate receivables, tighten up your collecting procedures, Make money online without making a purchase. Reducing costs, such as variable costs, when possible, prioritising cash creation above making a profit, and concentrating on the cash to cash conversion cycle are some strategies that can assist improve your balance sheet. Review your company plan The operating procedures of several firms and sectors have changed as a result of the new normal. This is the ideal moment to evaluate the long-term viability of your operating model and business procedures. Should you change course? It is important to envision how your company will function after the pandemic, whether in terms of products, services, channels, or your primary income source. To shed some light on this subject, list your key stakeholders from the supply chain to the customers and consider how their behaviour would alter after the epidemic. Emphasize innovation Since the epidemic, many family companies have welcomed innovation and change, which has compelled them to adopt new practises. It entails digitising old procedures under the new contact-less paradigm for many firms. In order to keep ahead of the curve and avoid approaching risks, evaluate your business's demands and think quickly and nimbly. If feasible, this is a good time to modify your products and services so that you may expand into other areas. Uphold your principles Family-owned companies have the distinct benefit of having expertise and having weathered previous crises. This is so because their success, dedication, and durability are built on a foundation of basic principles and purpose. Consider if crucial decisions are consistent with your company's beliefs before making them. This can support the company's confidence during the crisis. Using the relevant channels to share your values-based decision-making strategy can increase trust. Explain the concept of ownership continuity Even though succession is essential to a company's ongoing success, it is frequently a protracted process. Establishing emergency plans and making clear leadership transfers are essential for speedy and efficient preparation during times of disaster. In both business and family, the younger generation is essential. Establish precise transition strategies, including a study of the law and wills. Family companies are robust by nature. Transparency, communication, risk management, and decision-alignment with a family business's basic values and long-term vision are necessary components of effective crisis governance.

  • Business Savings Account- Explained

    A bank account is a need for any business, no matter how big or small. Due to the lack of transaction limits and the availability of an overdraft facility, business owners frequently choose a current account for their day-to-day financial activities. A savings account is another option for businesses, which may help them establish and maintain a cash reserve. If you have a large yearly obligation, like taxes, you may utilise this cash reserve to cushion the blow, save for future capital projects, or use it as an emergency fund. As part of a firm's financial strategy, savings accounts like this one might encourage business owners to save. Numerous benefits accrue to firms as a result of using business savings accounts. Here's how to find out. Business Emergency Safety Net: It doesn't matter how meticulously you prepare your business; unforeseen costs will always arise. Unexpected costs are tough to budget in any firm because of the environment's complexity. In the case of a sudden shift in demand or a disruptive event like a worldwide epidemic, a business's capacity to generate regular payments like rent and payroll might be hindered. Having a cushion in the form of a savings account might be a lifesaver for small business owners. In the event of an unforeseen need, a company savings account can be utilised to avoid costly short-term borrowings. Set aside money for future business endeavours: You can use the money you've saved in a business savings account to fund new ventures. As a company expands, it will obviously need to spend money on expansion initiatives, marketing, and other activities. Rather of relying on borrowed funds, business owners may tap into their company's savings account to pay for these development projects. Paying taxes is much easier now: Every day, weekly, monthly, quarterly, and yearly expenditure is incurred by a business. Budgeting for the more recurrent costs is straightforward, but the less frequent ones - the quarterly and yearly ones – can have an impact on the company's cash reserves when they are not properly prepared for. Income tax is a prevalent yet occasional cost that leaves a significant mark. This is a yearly obligation that can add up to a significant sum for many companies. Taxes can be paid in a business savings account so that the company's operational cash flow is not negatively affected. The Security of Your Cash: For company owners, bank account fraud is a big issue. Owners can better protect the money they don't utilise as working capital by setting up a company savings account. Third parties, such as vendors and customers, are less likely to communicate and store information about a company's savings account, making it less vulnerable to fraud. There is also automatic insurance of all Indian savings account deposits up to Rs 1 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC) (DICGC). Small company owners would be wise to retain their liquid cash in a business savings account and move it to their current account in small increments as needed in order to satisfy their working capital needs. Earned Interest on a Consistent Basis: The amount in a current account does not earn interest. In contrast, money maintained in a corporate savings account earns interest. Overdraft Protection Counter: A business's current account balance might drop into overdraft if spending outpace revenue for a short period of time. Short-term borrowing such as an overdraft can be costly for a company. Owners with foresight can set up an automated transfer from their company savings account to the current account whenever the firm goes into overdraft in order to avoid paying interest. Investing Funds for the Future: Most firms require capital expenditures to expand, improve, or repair their machinery and equipment. Office equipment (such as computers and printers) and heavy machinery are two examples of expenditures that might come with a hefty one-time bill. Without a reserve, company owners may be forced to take out loans at exorbitant interest rates in order to fund these purchases. Businesses can undertake capital investments that don't deplete their cash reserves or working capital if they have money set aside in a special savings account for that purpose. Improved Bank Relationship: It's simpler for businesses to get loans and other financial services when they establish a business savings account with their bank. An account in a company savings account shows that the entrepreneur has a practise of saving, and it may be used to service debts.

  • New beginning of the real estate boom: Tier-II cities

    The reduced cost of living, higher quality of life, and more affordable housing in Tier-II cities are enticing many individuals to consider moving there. These Tier-I cities are generally referred to as metropolitan cities or metros. Metropolitan areas have always attracted individuals looking for greater employment prospects and more equal communities. Suddenly, metros are seeing a slow but steady migration of residents, who are instead moving to Tier II cities due to a variety of causes. Let's have a look at them. The cost of living is less: The cost of living in tier-II cities is often cheaper than in metros on the whole. Due to decreased property and labour costs, pricing for other goods and services are also less expensive. Rent, healthcare, and schooling for children tend to be less expensive in Tier-II cities. Affordability: The reduced cost of housing in a tier-II city compared to a metropolis is one of the most compelling reasons to relocate there. In tier-II cities, real estate, including land, buildings, apartments, and commercial space, is far more inexpensive. As a result, tier-II cities may provide more appealing and spacious housing alternatives for people and families on a budget. Investing in a property in a Tier II city is a better financial decision since the cost of real estate is lower, which lowers the interest and repayment load on the borrower. Home loans from IDFC FIRST Bank start at 6.9% annual interest and last up to 30 years. Every step of the application and approval procedure has been automated.. Proximity to family members: Tier-II cities are still home to a large number of metro settlers' families, which may include their parents. People are increasingly enticed to return to their hometowns in order to be closer to their family and parents, while many physical jobs are being rendered obsolete by remote work choice. A higher standard of living: Less crowded, with lower pollution and more open areas than major metropolitan areas, Tier-II cities have easier access to the great outdoors than their larger counterparts. These elements contribute to a higher standard of living for many individuals and their families. As housing alternatives in tier-II cities grow in number and quality, the case for them becomes increasingly harder to make. The moment has come to get out of the city if you haven't already. Connectivity, public transportation, and communications infrastructure in tier-II cities are quickly catching up with their major city counterparts.

  • First-time personal loan tips for your child

    Are you concerned that your child will take out a personal loan? As a parent, these are some things you should tell your children. Even today, many families still turn to their elders for financial advice (most often their parents or grandparents). They came from a totally different financial position than today's youth. They most likely kept a tight rein on household expenditures, and luxuries like a television were probably not on the radar. The amount of persons who ended themselves in a debt trap was quite low since they treated their financial decisions very seriously. As your child prepares to take out their first personal loan, here are some things you should tell them. Analyze why you're requesting the loan Debt should only be taken on if it is for a good cause. Taking out a personal loan to pay for everyday costs has become a trend, which might lead to a serious debt problem in the future. Borrowing money to invest in appealing financial goods or plans is also on the rise. The worst that can happen is that your investment does not go as planned. Taking out a personal loan in the ancient days was reserved for situations where other options were exhausted. Even now, this should be the case. You should only apply for a personal loan if you are very convinced that you need it. Check to see if the EMIs are within your means In the past, there were only a few ways to get to the EMI. It took a long time to figure out how much money needed to be repaid and when. With the advent of free online personal loan EMI calculators, it is now possible to get an idea of the monthly payment amount as well as the length of the loan. Pay your EMIs on time If the financial institution does not make this clear up front, it is imperative that you find out. When you get paid, it's important to set aside money for the EMI as soon as possible; this way, you won't have to dig into these funds for other costs. Paying your EMIs on time might save you money in the long run, so never skip a payment. Having a good credit score is advantageous when applying for a loan in the future, thus this behavior will also show in your credit score. Get a reliable personal loan In the past, a personal loan was obtained from a local bank or credit union. We may now compare personal loan characteristics from several financial organizations owing to modern technologies . Additionally, the documentation is streamlined and user-friendly. Decide on the most appropriate term of employment Most likely, while applying for your first personal loan, you were swayed only by the interest rate. This, however, is a bad idea. You'll need to figure out how much of an EMI you can easily afford. If the interest rate is already known, adjusting the tenure will yield the optimum EMI. You may be saddled with a hefty EMI if you only have access to short-term loans from certain financial organizations . If you don't want your monthly budget to be affected, it's critical to select the right term length. Protect your loan with an insurance If your personal loan is for a larger sum, you'll want to get it insured. In the case of your death, your family will not be financially burdened. Providing your children with the knowledge they need to make sound financial decisions is an excellent way to help them develop good financial habits.

  • Plastic Money-Explained

    In the world of finance, the term "plastic money" is not a joke. The following is an overview of everything you need to know about it Money is a need in our daily life. But from whence came the requirement for monetary resources? There was a time when things were exchanged for commodities using a barter system. After that, gold and silver coins were introduced. For business transactions, we began using paper notes and coins. As time passed, we began to make purchases using our credit cards instead of cash. The term "plastic money" can apply to both your debit or credit card and the money you move from one bank to another via wire transfer. Let's take a look at plastic money from a more complete perspective. What is "Plastic Money"? The usage of credit and debit cards is on the rise. These cards are referred to as "plastic money." Plastic money may be found in debit and credit cards. In our daily lives, plastic money has made it easier to conduct transactions. If you don't have cash, you can't use it. As a result, we've been able to purchase products that we otherwise would not have been able to afford with some of the greatest credit cards available. Plastic money has several advantages: Among the numerous advantages of using plastic money are: 1. Living a cashless lifestyle: Plastic money has not only made our lives simpler, but it has also eliminated the inconveniences that come with carrying currency. Some of the greatest credit cards allow us to travel across the world without having to worry about bringing any cash with us. 2. Improved protection: The reduction in robberies and other crimes is one benefit of paying with a credit or debit card. Hacking a credit card's PIN is complicated and involves familiarity with certain steps. The safety of credit and debit card funds is thereby assured, and this gives cardholders some peace of mind. 3. The ability to make one's own decisions regarding one: It is possible to make a transaction and pay for it using a credit card even if you don't have the money to do so. It is really handy especially when you are low on funds. Credit cards help lessen the need to rely on others for financial support in the event of an unexpected financial crisis. If you need money, you may use a credit card to get it, and then pay it back over time. Furthermore, credit cards are readily available. Simply fulfil your bank's credit card eligibility requirements and you'll be able to get your hands on a card. 4. Ease of transaction processing: Credit cards and debit cards can assist conduct online payments, cash transfers, and other activities with ease. It is quite simple to make payments with plastic money from any place. In addition, many online merchants provide discounts to customers who pay with a credit or debit card. 5. Exciting offers and reductions: The majority of credit and debit card companies provide specials and discounts to their customers when they purchase online. Spending less and earning cashback are two of the many benefits you may obtain from using them. 6. Spending less on a trip: Without plastic money, travelling may be pricey. Using a credit or debit card gives you access to lounges and great travel offers. When travelling, plastic money is a must because you can't get the same conveniences when paying with cash. Plastic money's drawbacks There are various disadvantages to using plastic money, such as: It does not operate in all places: It is possible that some businesses and establishments may not accept credit or debit card payments. Purchasing items from a small business owner, such as fruits and vegetables or newspapers, is one such example. Has the potential to put you in debt: When using plastic money carelessly, it's easy to go over your budget and incur debts you don't have the means to repay. They may end themselves in debt as a result.

  • AU Small Finance Bank has hiked interest rates on fixed deposit

    Interest rates on fixed deposits under 2 crore rupees have increased at AU Small Finance Bank. The bank is now offering senior people a regular interest rate on term deposits maturing in 7 days to 120 months of 3.75 percent to 6.90 percent and 4.25 percent to 7.40 percent, respectively, as of today, June 24, 2022, with the new interest rates going into effect. FD Rates for AU Small Finance Banks in 2022 The bank will continue to offer interest rates of 3.75 percent on deposits maturing in the next week to one month and fifteen days and 4.25 percent on deposits maturing in the next month and sixteen days to three months. While the interest rate on fixed deposits that mature in 6 months, 1 day to 12 months has increased from 5.25 percent to 5.35 percent, a 10 basis point increase, it will continue at 4.75 percent for term deposits that mature in 3 months, 1 day to 6 months. On deposits maturing in 12 months, 1 day to 15 months, AU Small Finance Bank will now offer an interest rate of 6.60 percent, up from 6.50 percent, a 10 basis point increase. On deposits maturing in 15 months, 1 day to 24 months, the bank has increased the interest rate from 6.35 percent to 6.45 percent, a 10 basis point increase. A 15 basis point increase has been made to the interest rate on term deposits with maturities ranging from 24 months and a day to 36 months, rising from 6.75 percent to 6.90 percent. Interest rates have increased by 55 basis points, or from 6.35 percent to 6.90 percent, for maturities ranging from one day to forty-five months. On deposits maturing in 45 months and one day to less than 60 months, the bank will now pay an interest rate of 6.45 percent, up from 6.35 percent previously. On term deposits maturing in 60 months to 120 months, the interest rate at AU Small Finance Bank has increased by 15 basis points, or bps, to 6.90 percent from 6.75 percent previously. FD Rates For Senior Citizens At AU Small Finance Bank Only resident senior citizen customers of AU Small Finance Bank will continue to get an additional rate of 0.50 percent over and above the standard rate on deposits across all tenors. Here are the updated senior citizen interest rates in force as of right now. Rates for AU Small Finance Bank The AU Small Finance Bank offers a recurrent deposit (RD) programme with maturities ranging from three months to one hundred and twenty months. The interest on deposits for recurring deposits is compounded at quarterly intervals, at the applicable rates, according to the bank's website. From the day the instalment is paid forward, the interest will be calculated.

  • In response to recent increases in repo rates, these banks increased the interest on savings account

    Following the Reserve Bank of India's (RBI) two consecutive repo rate increases in May and June of cumulative 90 basis points to 4.9 percent (100 basis points = 1 percentage point), a number of smaller and more recent private banks have increased interest rates on savings accounts. Savings account interest rates are currently up to 6% at IDFC First Bank. It provided an interest rate on savings accounts of up to 5% prior to increases in repo rates. 10,000 rupees is the typical monthly balance requirement. Savings account interest rates at CSB Bank are now up to 5%. Prior to repo rate increases, it offered a savings account interest rate of up to 3.5 percent. Between Rs 2,500 and Rs 5,000 is the typical monthly balance requirement. Current savings account interest rates from Federal Bank and Kotak Mahindra Bank range up to 4%. Kotak Mahindra Bank and Federal Bank both offered interest rates of 3.5 percent and 3.8 percent on savings accounts prior to repo rate increases. Between Rs 2,000 and Rs 10,000 is the typical monthly balance requirement at Kotak Mahindra Bank, while Rs 5,000 is the typical monthly balance requirement at Federal Bank. Interest rates on savings accounts are currently available from Union Bank of India up to 3.55 percent. Prior to repo rate increases, it provided a savings account interest rate of 2.90 percent. The average balance requirement per quarter ranges from Rs. 250 to Rs 1,000 Savings account interest rates are currently up to 3.35 percent at Bank of Baroda. Prior to repo rate increases, it provided a savings account interest rate of up to 3.30 percent. The average balance needed each quarter ranges from Rs. 500 to Rs. 2,000.

  • How the July 1 use of tokenization will make your credit and debit cards safer

    Your credit and debit cards will be safer to use for online purchases starting on July 1. Payment aggregators, wallets, and online retailers are not to keep any sensitive card-related client information, including complete card details, according to a directive from the Reserve Bank of India (RBI). A "token" will be used in place of the 16-digit card numbers. Only by using a new procedure known as "tokenization" will you be able to effortlessly make a card payment repeatedly. Until recently, you had to preserve your debit or credit card information each time you made an online purchase from a retailer or reserved a train or aircraft through a travel website. You might complete the payment transaction in a matter of seconds by entering just the three-digit CVV number. But doing so in the current format is dangerous. Popular websites have occasionally been compromised by thieves who stole saved card information. The 16-digit debit or credit card number will now be replaced by a singular token that is specific to only your card and to one retailer at a time thanks to tokenization. The token hides your card's actual information, preventing fraudsters from abusing it if there is a data breach on the retailer website. Online purchases, mobile point-of-sale purchases, and in-app purchases can all be made using tokens. The most secure way to make payments is with a token because it never contains personal information that may be obtained and is always changing. When you use your card at the checkout counter of a real store, you do not require the card's token. All merchant websites are not permitted to save your card details, CVV, or expiration date on their servers for the purpose of completing online transactions as of July 1 due to the tokenization requirement. Card users should either generate a token on the shopping website before making a purchase and save it there (for future use) or create a token and save it (for future use) at the time of payment after making a purchase. Customers can decide whether to allow their cards to be tokenized on a merchant's website, although the process of tokenizing debit and credit cards is not required. Then, whenever a consumer makes an online purchase, they must enter their card information again, including the 16-digit card number, expiration date, and card verification value (CVV).

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