In order to prevent unauthorised transactions on credit cards, the Reserve Bank of India (RBI) has mandated the use of OTPs as a security measure. This is why credit card transactions typically require a one-time password or OTP for authentication, particularly when it comes to online transactions.
How do transactions without OTP work?
While OTPs add an extra layer of security to your transactions, there are a few methods of credit card transaction without OTP use:
- Offline use: When swiping at a point-of-sale terminal to make a purchase offline, OTPs are not required. Instead, you authenticate the transaction using your credit card PIN.
- Recurring payments: In the case of recurring transactions such as subscriptions or auto-payments, subsequent transactions don’t require an OTP.
- International transactions: You might find that an OTP isn’t required when using your Indian credit card on foreign websites. This is because the RBI mandate on OTP-authentication only applies to domestic transactions.
- Contactless payments: Contactless transactions of small value (usually below a specified limit) may not require an OTP-authentication.
Benefits and risks of OTP-free transactions
| Benefits | Risks |
| Faster checkout process | Potential for unauthorised transactions |
| Convenient for small, frequent purchases | Increased vulnerability if card is stolen |
| Reduces reliance on mobile phones | May lead to overspending due to ease of use |
| Improves customer experience | Possible technical glitches in the system |
| Supports contactless payments | Risk of data breaches at merchant end |
Tips for securing your credit card against fraud
- Enable transaction alerts: Set up notifications for all card activity. This allows you to spot any unauthorised transactions immediately and take swift action to protect your account.
- Use virtual card numbers: Many banks offer the option to generate temporary card numbers for online shopping. These expire after a single use, adding an extra layer of security to your transactions.
- Keep your card information private: Never share your card details, CVV, or PIN with anyone, not even those claiming to be bank representatives. Legitimate institutions won't ask for this sensitive information over phone or email.
- Regularly monitor your statements: Make it a habit to review your credit card statements thoroughly. Look for any unfamiliar charges, no matter how small, as fraudsters often start with tiny amounts to test the waters.
- Use secure networks for online transactions: Avoid making purchases or accessing your bank account on public Wi-Fi networks. If you must, use a VPN to encrypt your data and protect it from potential eavesdroppers.
- Update your contact information: Ensure your bank has your current phone number and email address. This ensures you receive timely alerts and can be reached quickly if any suspicious activity is detected on your account.
- Be cautious with contactless payments: While convenient, contactless technology can be exploited if your card falls into the wrong hands. Consider setting lower transaction limits for contactless payments to minimise potential losses.
Speaking of secure transactions, a credit card that combines convenience with robust security features is the Bajaj Finserv RBL Bank Credit Card. This card offers a perfect balance of cutting-edge technology and traditional safeguards, making it an ideal choice for the savvy Indian consumer.
Bajaj Finserv RBL Bank Credit Card benefits
- Earn points on almost every swipe, with extra rewards for online and international purchases. It's like getting a little thank-you gift each time you shop.
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- Breeze through airports with complimentary lounge access. Travel in style without breaking the bank.
- Convert large purchases into easy EMIs, making big-ticket items more affordable. It's like having a financial time machine that spreads costs into the future.
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With its robust security features and a host of benefits, theBajaj Finserv RBL Bank Credit Card is designed to give you peace of mind in an increasingly digital world. So, why wait? Apply today!
