Many frauds take place in India every year and the majority of them are on credit cards. Therefore, the banks have made credit card transactions more secure by introducing authentication through OTP. But do you know what is OTP in credit card transactions? The full form of OTP is One Time Password and it is a layer of security used when you make a credit card transaction. Your credit card has a credit card number, CVV, Expiry, and your name and any user can have those details if he has your card or a snap of it. But if he wants to make a payment using these details then he can’t do so because he will have to enter an OTP to complete the payment. Therefore OTP in credit card transactions gives your more security while making payments.
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How an OTP Works?
An OTP can be a 6 digits number that is sent to your registered mobile number when you initiate a payment from your credit card. The transaction amount will only be debited after entering the received OTP on your mobile phone. The OTP helps to avoid fraud and online theft that might take place from your credit card.
Properties of an OTP
- An OTP is a six digits number that is received on your mobile phone when you initiate a payment from your credit card.
- You can’t use the same OTP again for further transactions.
- The OTP expires after a few minutes of receiving it on your mobile phone.
- OTPs are usually sent on your registered Email ID and Phone number.
- There is a specified limit of requesting the OTP for making a particular credit card transaction.
- You will get the OTP only after entering your credit card number, CVV, Name, and Expiry.
Benefits of OTP
OTPs have made credit card transactions more safe and secure. Now, you don’t even have to remember the password because you can authenticate the payment through an OTP. As soon as you request the OTP, you will receive it on your phone number. Every time the bank sends a different OTP when you are using your credit card for the payment.
Precautions to be taken after Receiving an OTP
- Never share your OTP with anyone over a phone call or text message.
- Make sure you enter the OTP within the defined time frame otherwise it will expire.
- Avoid sharing your credit card details with anyone over a phone call or text message.
Received OTP without Request
If in case you have received an OTP without making a request then it means that someone is using your credit card and making payment from it illegally. In such a situation, immediately contact the bank and block your credit card so that no one can misuse your card. Once you have blocked your credit card, no one can spend a single rupee from it.
Now you know everything about an OTP and what is OTP in credit card transactions. There are a lot of things above that you should know about OTP. But make sure you never share the OTP with anyone because it might cost you a lot. OTPs have given a security layer to credit card online transactions.