Foreign transaction using credit card
- Thread starter Shubham
- Start date
Mr. Pritam Pal
KF Rookie
You're right to be concerned about the security of your credit card when making foreign transactions. While it's true that some foreign transactions might not require an OTP for verification, relying solely on the CVV code does raise security concerns.
Here's why:
Not all foreign transactions skip OTP:
Many banks, especially in India, have implemented stronger security measures for international transactions, including mandatory OTP verification. This is becoming increasingly common as regulations and awareness around online security evolve.
The requirement for OTP or other two-factor authentication (2FA) often depends on various factors, like the merchant location, transaction amount, risk assessment by the bank, and cardholder preferences.
Security beyond CVV:
Even though some transactions might not require OTP, CVV alone isn't the only security measure. Banks often employ additional fraud detection systems that analyze transaction patterns, location data, and other factors to identify suspicious activity.
Additionally, many credit cards offer purchase protection and chargeback options in case of unauthorized transactions, even if you haven't received an OTP.
However, concerns remain:
Relying solely on CVV without OTP or other 2FA methods certainly increases the risk of unauthorized transactions, especially if the card number falls into the wrong hands.
Card skimming and data breaches at merchants can expose card details, making them vulnerable to misuse.
Recommendations:
Always use reputable websites and merchants for foreign transactions.
Be cautious about sharing your card details online, especially on unknown websites.
Enable strong passwords and 2FA wherever possible, including your bank accounts and the websites you use for online purchases.
Regularly monitor your credit card statements for suspicious activity and report any unauthorized transactions immediately.
Consider contacting your bank to inquire about their specific security measures for international transactions and explore options for enabling additional verification methods like OTP if available.
Remember, staying informed and vigilant is crucial to protecting yourself from online fraud. Don't hesitate to reach out to your bank if you have any concerns or suspect unauthorized activity on your credit card.
Here's why:
Not all foreign transactions skip OTP:
Many banks, especially in India, have implemented stronger security measures for international transactions, including mandatory OTP verification. This is becoming increasingly common as regulations and awareness around online security evolve.
The requirement for OTP or other two-factor authentication (2FA) often depends on various factors, like the merchant location, transaction amount, risk assessment by the bank, and cardholder preferences.
Security beyond CVV:
Even though some transactions might not require OTP, CVV alone isn't the only security measure. Banks often employ additional fraud detection systems that analyze transaction patterns, location data, and other factors to identify suspicious activity.
Additionally, many credit cards offer purchase protection and chargeback options in case of unauthorized transactions, even if you haven't received an OTP.
However, concerns remain:
Relying solely on CVV without OTP or other 2FA methods certainly increases the risk of unauthorized transactions, especially if the card number falls into the wrong hands.
Card skimming and data breaches at merchants can expose card details, making them vulnerable to misuse.
Recommendations:
Always use reputable websites and merchants for foreign transactions.
Be cautious about sharing your card details online, especially on unknown websites.
Enable strong passwords and 2FA wherever possible, including your bank accounts and the websites you use for online purchases.
Regularly monitor your credit card statements for suspicious activity and report any unauthorized transactions immediately.
Consider contacting your bank to inquire about their specific security measures for international transactions and explore options for enabling additional verification methods like OTP if available.
Remember, staying informed and vigilant is crucial to protecting yourself from online fraud. Don't hesitate to reach out to your bank if you have any concerns or suspect unauthorized activity on your credit card.
Bharatiya Nagrik
KF Mentor
One of the best way to protect a credit card from Fraud foreign transaction in case of lost card is to erase CVV mentioned on the physical card and store it in a secure app.
many a times i have also done some foreign transactions but most of the transactions does not require the otp. only some of the handfull merchants or websites have the otp system if such company is bound or has a some contract in indian financial ecosystem, and it is also depended on the payment gateway that they use most payment gatway such companies use are not indian nor registered here so they follow the law of the country in which they are situated and most of the european companies dont have otp system while they perform payments.
