![]() The banks are doing constant up-gradation of security features to avert such incidents. With the growing popularity of Credit Cards, the instances of fraud also have been increasing. The safety aspect of OTP is that the number is sent to the registered mobile number and the email Id of the cardholder, and nobody else will have access to the number. When online transactions are done using a credit card, the second level of authorisation with the OTP is required besides the CVV number, i.e., Card Verification Value Code). ![]() OTP or One-time Password is one such enhanced security feature. So then what is OTP in credit card transactions? Well, with the introduction of online transactions, it became necessary to enhance the security features to avert fraud. Credit cards became popular over a period of time, and the loopholes for misuse of the cards were identified, and the security feature was enhanced by introducing PIN (Personal Identification Number), a four-digit number to verify the authenticity of the user. Upon receiving the card, every cardholder had to sign on the reverse of the card in the presence of a bank official. Initially, when credit cards were introduced, the only way to ensure the user's authenticity was to verify the signature on the reverse of the card. Payments are made directly to the merchant by the bank for the purchases made for which the cardholder will be sent a monthly bill. To be able to use a credit card correctly and with ease, it is vital to understand what are credit cards and what is OTP in credit card transactions.Ĭredit cards always have a predefined limit set according to the income and repayment capacity of the cardholder. What is OTP in Credit Card Transactions? - All you should know about Credit Card OTPĬredit Cards are payment mechanisms that have replaced cash payments.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |