How can OTP Secure Credit Card Transactions? Learn More about It

Posted on Friday, February 24th, 2023 | By IndusInd Bank

Digital money transactions and transfers via credit cards, debit cards, and online banking have become commonplace today. However, despite their ease and convenience, no one can deny the risks associated with the security of your money when using these payment methods.

Fortunately, there is something known as an OTP (One-time Password) which acts as an added layer of security, ensuring it won’t be easy for cyber thieves to steal your money. Here is a comprehensive guide to what OTPs are and how they help protect your online credit card transactions.

What is an OTP?

The OTP is a unique number code consisting of four to six digits, briefly valid, and randomly generated by the bank to authenticate your credit card transactions.

For instance, if a thief happens to steal your credit card, they can see all its information, including the confidential CVV (Card Verification Value). But that’s not how an OTP system works. Here, even if someone else uses your card, they won’t be able to complete the transaction without entering the OTP – which only you have access to.

How does an OTP help Secure Credit Card Transactions?

Let us take the help of an illustration. You wish to use your credit card to buy an expensive pair of shoes from an Italian brand. When buying online, there is no-one to check the legitimacy or ownership of your card. This is where an OTP will verify your identity and the legitimacy of your credit card.

The process begins when you put in the credit card details on the store’s website. Once you have submitted the requisite information, the store merchant will promptly send a request to generate an OTP to either your registered mobile number or email address, or both.

After you have received the OTP, you will have to enter it on the website to complete the transaction. The transaction will only push through if you input the correct OTP.

Thus, a thief would need access to your credit card AND your registered mobile number or email address to be able to successfully use your credit card. This puts one more hurdle in the path of those out to commit fraud.

Things you Need to Know about an OTP

A major deterrent for cyber thieves, OTPs are used by more than 60 million credit card users in India to validate and complete their online transactions. Here are some useful facts about OTPs:

• OTP is time-restricted; you will not be able to authenticate a transaction if you do not use the OTP within a few minutes, usually ten or fewer, from the time of it being generated.
• OTP can be used only once and should not be shared with anyone.
• Transactions in which an OTP is required includes all types of online payments including shopping and utility bill payments.
• Receiving an OTP without requesting for one immediately alerts you to possible fraudulent activity being conducted using your card
• OTP serves as a quick and hassle-free one-time solution that effectively saves you the bother of remembering multiple passwords.
• OTPs are only generated for online transactions. If you were to walk into a store and swipe your credit card, you would have to punch in your 4-digit credit card PIN.

Why you should Choose IndusInd Bank Credit Cards

Trusted by thousands of Indian credit card users, IndusInd Bank credit cards, in addition to being packed with exclusive benefits and rewards, boast highly robust security features.

For instance, credit cards like the Platinum Aura Edge Credit Card, Nexxt Credit Card, EazyDiner Credit Card and Legend Credit Card are chip-based contactless cards that enable faster and 100% secure transactions that protect the card-user against fraudulent purchases through encryption and dynamic data technology.

Additionally, these cards come with the unique ‘Total Protect’ feature that provides insurance cover for an amount equal to the credit limit on your card for unauthorized card transactions – both in case of theft – and in case of counterfeit fraud.

IndusInd Bank offers different types of credit cards, each laden with a unique bouquet of benefits, tailored to meet varying lifestyle needs and preferences. What’s more, it is easy to obtain an instant credit card with IndusInd Bank. Designed for the convenience of customers, we offer a 3-step, 100% paperless application process and give instant approval. Apply for your IndusInd Credit Card now !

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.