Abhishek012
TF Pioneer
W.e.f 1st, July, 2024 - RuPay Debit/Credit cards are not allowed for Magstripe and Fallback Transactions (Now use only EMV Chip):
Presently, all Point of Sale (POS) terminals in India are capable of processing EMV chip based transactions. However, there have been cases of card misuse where counterfeit cards, created using the magstripe data of EMV cards, were used to perform transactions as magstripe or fallback transactions.
Hence, as part of our ongoing efforts to enhance transaction security, NPCI shall be blocking magstripe and fallback transactions for RuPay cards as prescribed below. This action is aimed at mitigating the risks associated with card skimming and cloning frauds.
Key Points:
1) The RuPay Steering Committee meeting held on 1st February 2024 endorsed the implementation of below rules for blocking Magstripe and Fallback transactions.
*As per RBI's Master Directions on PPIs, Gift PPIs may continue to be issued with or without EMV Chip and PIN enablement.
**Applicable for Forex Cards.
2) Internationally acquired transactions using magstripe shall be permitted for credit and debit cards as magstripe transactions are still permitted in other geographies. Issuers are advised to implement suitable controls as they see fit to mitigate the risks associated with magstripe transactions.
3) above changes will take effect from 1st July 2024.
Presently, all Point of Sale (POS) terminals in India are capable of processing EMV chip based transactions. However, there have been cases of card misuse where counterfeit cards, created using the magstripe data of EMV cards, were used to perform transactions as magstripe or fallback transactions.
Hence, as part of our ongoing efforts to enhance transaction security, NPCI shall be blocking magstripe and fallback transactions for RuPay cards as prescribed below. This action is aimed at mitigating the risks associated with card skimming and cloning frauds.
Key Points:
1) The RuPay Steering Committee meeting held on 1st February 2024 endorsed the implementation of below rules for blocking Magstripe and Fallback transactions.
| Transaction Type | Magstripe | Magstripe | Fallback | Fallback |
|---|---|---|---|---|
| Product | Domestic | International | Domestic | International |
| RuPay Debit | To be declined | Allowed | To be declined | To be declined |
| RuPay Credit | To be declined | Allowed | To be declined | To be declined |
| RuPay Prepaid* | Allowed | Allowed** | To be declined | To be declined |
*As per RBI's Master Directions on PPIs, Gift PPIs may continue to be issued with or without EMV Chip and PIN enablement.
**Applicable for Forex Cards.
2) Internationally acquired transactions using magstripe shall be permitted for credit and debit cards as magstripe transactions are still permitted in other geographies. Issuers are advised to implement suitable controls as they see fit to mitigate the risks associated with magstripe transactions.
3) above changes will take effect from 1st July 2024.
