To minimize online transaction frauds in India, RBI has come out with more safer guidelines for online transactions. As per RBI, both credit and debit card holder have to validate their identity while performing an online transaction.
There can be multiple ways thru which identity validations can be done. One option is to send a transaction code as SMS to user’s mobile on each transaction, using which the transaction can be completed. Another option is to provide users a code generator device.
SBI, ICICI, Kotak Mahindra Bank and Citibank sends one time code as SMS to mobile for authenticating the transaction. HSBC provides a digital code generator which has to be used for any transaction online. HDFC uses a image and text to validate the user which has to be configured at time of net banking registeration.
Its difficult for a hacker to have access of everything including username, password, mobile phone or code generator.
Most of the banks do validation one time only at the time of activating third party beneficiaries. In all future transaction with activated third party accounts are not authenticated.
In case of credit card, Both MasterCard (called MasterCard SecureCode) and Visa (called Verified by Visa) uses password for authenticating online transactions. Some credit card have a feature of limiting the amount maximum of which a transaction can be done online.