What is OTP in Credit Card Transaction ?

What is OTP in Credit Card Transaction ?

15 January, 2024

Credit Cards enable you to make online and offline payments up the credit limit applicable to your card. They offer undeniable convenience, without having funds debited from your Savings Account immediately. However, as more and more people use Credit Cards for online transactions, they may invite trouble from cyber criminals looking to pry on their financial information online. Hence, Credit Card issuers use One-time Passwords (OTPs) to authenticate users’ identities and enhance safety levels. Here’s everything you need to know about OTP in Credit Card transactions.

What is OTP in Credit Card Transactions?

One-time Password or OTP is a numerical code sent to your Registered Mobile Number (RMN) while you make online Credit Card transactions. The code comprises a four to six digit passcode randomly generated through automated software when your bank or Credit Card company receives the transaction request. The code is valid for a limited time period and the payment amount is deducted from your Credit Card account only after you authenticate the transaction through OTP.

How does OTP Work in Credit Card Transactions?

While using your Credit Card online, you can authenticate your transactions using OTP. Here’s how the process works:

  1. At check-out, you input your name, Credit Card number, CVV, and expiry date on the transaction page.

  2. The website or app where you choose to shop or make a Credit Card payment asks you for an OTP to confirm it’s you.

  3. You can check your phone to find the four or six digit code sent to your mobile number registered with the Credit Card provider.

  4. You must now enter the OTP to confirm your identity and authenticate the transaction.

  5. After you provide the OTP, the payment is processed instantly, and you receive a real-time notification.

Tips to Wisely Use OTP in Credit Card Transactions

To enjoy the heightened security that OTP offers, you must consider a few facts while inputting OTP to verify online Credit Card transactions. They include:

  • Keep the OTP Private 

It is best to treat your OTP as the secret code that it is meant to be. Avoid sharing it with anyone else. Also, avoid the practice of letting others use your Credit Card and sharing OTP with them over a call or message.

  • Use Official Channels 

Only enter OTPs on trusted and official websites or apps. Visit the merchant’s website by searching online instead of clicking on suspicious links or messages. Check the authenticity of the website or app before initiating the transaction.


  • Provide OTP only While Transacting

Banks and companies never ask for your OTP randomly. They need not verify your identity for any purpose other than to validate your transaction. Hence, if someone claims to represent the bank or Credit Card company and asks you for an OTP for any other reason, deny the request.

  • Keep your Number Updated

If you change your mobile number, you must inform your bank or Credit Card company about such a change. This way, you can continue to receive SMS alerts on transactions and OTPs to authenticate your identity.

  • Lock Your Device

If your smartphone is easily accessible to anyone besides you, they can retrieve your OTP as well. The whole idea of authenticating your identity gets hampered due to such unauthorised access. Hence, ensure you keep your device locked with biometrics or a strong passcode.

Benefits of OTP in Credit Card Transactions

Using OTP in Credit Card transactions proves beneficial in the following ways:

  • Easy Processing

Your Credit Card transactions are easily processed when you complete the security verification process via OTP. It is a one-step process where you need to input the OTP sent to your mobile number and complete the transaction.

  • Alert on Transactions

As OTPs indicate the initiation of payments, they are a good way of tracking your transactions. If you receive an OTP notification without having initiated a Credit Card transaction, you should suspect that someone else is using your card and take the necessary protective steps.

  • Real-time Verification 

OTPs are generated instantly and are valid only for a few minutes. As a result, even if someone tries to breach your Credit Card information and trace the OTP with hacking, they will fail as the tracing takes time. Before they can access your OTP, it will expire.

  • Additional Layer of Security

As the OTP is automatically generated and keeps changing for each Credit Card transaction, it is impossible to guess or replicate it. It acts as an additional layer of security besides the password or PIN you use while making payments through digital payment apps or Net Banking.

  • Wide Applicability

OTP is applicable to a wide range of Credit Card transactions. You can use it to safely shop online, pay bills, make fund transfers, make payments during financial emergencies, settle loan EMIs, and so on.

Enjoy Enhanced Security with HDFC Bank Credit Cards

Understanding what OTP in Credit Card transactions is and using it wisely enables you to carry out your online payments securely. To provide you with the best experience, HDFC Bank offers an OTP checkout facility powered by Visa/Mastercard SecureCode. The OTP is generated instantly under this facility and eliminates the need for you to remember a password. You can simply input the OTP sent to your mobile number on the merchant’s website and complete the transaction without any worries.

Conduct Credit Card transactions via secure OTPs with HDFC Bank.


*Terms and conditions apply. 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. Credit Card approvals at the sole discretion of HDFC Bank Limited. Credit Card approvals is subject to documentation and verification as per Bank's requirement. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.

Conduct Credit Card transactions via secure OTPs with HDFC Bank.

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