In order to improve success rate of online transactions, Reserve Bank of India has made Additional Factor of Authentication (like OTP) optional for “Card Not Present” transactions of up to Rs 2,000. This means, the next time you make online payments using debit or credit card you can avoid OTP, if you want, for low-value transactions.
“Customers opting for this facility will go through a one-time registration process requiring entry of card details, etc. and AFA by the issuing bank. Thereafter, the registered customers will not be required to re-enter the card details for every transaction at merchant locations that offer this solution and thereby save time and effort,” said RBI in a statement.
“This will greatly improve the success rate of online transactions, which will grow both online commerce and cashless payments in India. Additionally, we will await further details,” said Govind Rajan, CEO of FreeCharge.
In this model, the card details already registered would be the first factor while the credentials used to login to the solution (as confirmed by the card network providing the solution) would be the additional factor of authentication, according to RBI.
“This will definitely encourage more users to switch to debit and credit cards for online payments,” said Ola.
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