Every time you make an online payment, you might notice that your credit card requires an OTP code number to validate the transaction. Plus, banks stress that you should avoid sharing your OTP with anyone to prevent unauthorised access or use of your card.
Short for One Time Password, an OTP code number is a numeric code delivered to your registered mobile number when making a payment. OTP meaning in banking is simple – it is a unique series of random numbers to validate each transaction. However, these numbers are only valid for a few minutes. The amount is credited from your card only after you enter the correct OTP.
But why is OTP so important? Why do all banks insist on using random numbers to authenticate your transactions? Stay with us as we seek the answers to these questions!
Have you noticed that most physical credit card transactions do not require an OTP?
You can simply swipe the card or insert it into the machine, enter your PIN and complete the payment. But when you shop online, no store representative exists to confirm your identity or your card’s legitimacy. Hence, there is an increased chance of fraudulent transactions or payments from stolen credit cards.
That brings us to some essential questions – What is OTP in credit card transactions, and how has it changed the payment landscape?
If you receive an OTP on your phone and have no payments pending, you can raise a dispute with the bank about leaked card details and block the card immediately.
Think of it as an added security layer. Even if your card gets nabbed or misplaced, you can rest assured that no one can use your card without an OTP.
In several cases, an OTP is considered a minor inconvenience. After all, checking your mobile or email ID for the code whenever you want to pay can be frustrating. But the security it guarantees makes up for the hassle it may provide.
Having said that, a persistent limitation is a considerable dependence on cell coverage to make online payments. If you are in an area with poor network connectivity, receiving the OTP code number in time and completing your purchase can be challenging.
Plus, server problems from the bank’s end can disrupt the OTP system and affect online payments.
The main contributor to credit card fraud is the lack of awareness. The first thing to remember is that you should never share your OTP with anyone, irrespective of who they claim to be. Plus, when using it on payment gateways, confirm that the platform is encrypted and that the information cannot be leaked.
Here are some other ways to protect yourself from OTP thefts:
Secure your credit card transactions with the 5% card from Fi Money. In collaboration with the Federal Bank, Fi has launched a co-branded credit card to make rewards more accessible! What’s more, the rewards scale according to your spending patterns. Enjoy up to 5x accelerated rewards when you purchase anything from India’s top 21 brands. Combine this with all the bells & whistles like lounge access, zero forex charges, instant credit card issuance and customised reminders. A welcome offer in the form of exclusive vouchers worth Rs 5000 also awaits your arrival at Fi!
OTP is required for all online credit card transactions and some physical transactions where the sum exceeds a particular amount.
It is relatively challenging to misuse OTPs unless you readily provide the code to someone else. The main reasons are that OTPs are only valid for 10 minutes and are sent through an encrypted bank network, eliminating the chances of a security breach.
Products on our platform | Details |
---|---|
Unified Payments Interface (UPI) | Epifi Technologies Pvt. Ltd ('Epifi Tech') is a Third-Party App Provider ('TPAP') - and acts as a service provider and participates in UPI through a Payment Service Provider ('PSP') Bank (Federal Bank). |
Savings Account and Deposits | Federal Bank offers savings account, fixed deposits and smart deposits to users on the Fi App (through Epifi Tech). Users' savings account and deposits are securely opened with Federal Bank. |
Cards | Fi Brand Pvt. Ltd. markets and distributes co-branded cards in partnership with Federal Bank and Visa. Cards are issued by Federal Bank. |
Loans | Epifi Tech facilitates loan distribution and acts as a lending service provider and/or digital lending application for various Banks, registered NBFCs and NBFC-P2P ('Lenders') List of Lenders. |
Mutual Funds | Epifi Wealth Pvt. Ltd. ('Epifi Wealth') is a registered investment adviser and provides a platform for mutual funds investment. Epifi Wealth has partnered with MFCentral to provide mutual funds analyser to users. |
Loans Against Mutual Funds | Epifi Tech in partnership with regulated entities including Epifi Wealth and Bajaj Finserv provides a platform for loans against mutual funds. |
US Stocks | Epifi Tech has partnered with US stock broker Alpaca Securities LLC to provide users the option to invest in US stocks. |
Connected Accounts | Epifi Wealth (as a financial information user), in partnership with Finvu and Onemoney, provides users the option to link their existing financial accounts on Fi. |
Credit Analyser | Epifi Tech (as a non-specified user) in partnership with Experian and CIBIL provides insights on users' credit scores |
Fi-Coins | Fi-Coins are earned under a reward programme for engaging with products and services on the Fi App. |
Fi Store | Fi-Coins can be redeemed on products and services listed on Fi Store such as merchandise, gift cards, air miles, among other things. |
1. Net Worth: Helps users get a view of their financial Net Worth — in accordance with their assets & liabilities
2. Wealth Maximiser: Analyses your finances, shares financial reports to make informed money decisions
These products are governed by our Terms and Conditions, Privacy Policy, and any other product and partner specific terms and conditions as communicated to you.
©epiFi Technologies Pvt. Ltd. 2025
Fi is a money management platform that offers the perfect solution for all your financial needs. The Federal Bank Savings Account offered through Fi is an online savings account that you can open in 3 minutes! It goes beyond online account opening, as it has helped reimagine the banking experience in India
Through Fi, you can do more: apply for an instant personal loan, pick from many types of Mutual Funds, select the best SIP to invest in US Stocks, apply for a forex-free Debit Card (works for select account plans) to use while travelling abroad, analyse/improve their portfolio, get a 360-degree view of your spend insights and take steps building wealth.
You can also utilise Fi's free personal loan resources, such as the Personal Loan and EMI calculator, before proceeding to the quick loan application process. All of this is why over 35 lakh Indians feel that Fi is the only financial app you will ever need.