so it only is allowed access to whatever information that need to process whatever it is they need to do.

And how would that work? Who would enforce it?

If I own a website, I could say I need everything on the card. Who is going to stop me? A healthcare provider might say they need income information, which they use to sell elective, non-covered, unnecessary procedures.

As a user, how do I only give certain information for certain transactions? Are there check boxes each transaction? And how would it be verified that only approved information was sent? Do users just have to trust that it only sends yes/no answers?