InvestorQ : How are the transactions carried out through cards protected against fraudulent usage?
Ira Shah made post

How are the transactions carried out through cards protected against fraudulent usage?

Answer
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1 year ago


All Card Present (CP) and Card Not Present (CNP) transactions on cards issued in India are secured with Additional Factor of Authentication (AFA). Please note, a CP transaction is a card transaction that is carried out through physical presence of card at the point of transaction. In contrast, and as the name suggests, a CNP transaction does not require the card to be physically presented at the point of transaction and hence, it is called a remote transaction.

The Additional Factor of Authentication (AFA) can be in any form and few commonly-used forms are PIN, dynamic one-time password (OTP), static code, etc. The requirement of AFA is not mandatory for transactions where outflow of foreign exchange is contemplated.

Similarly, in case of CP transactions (except ATM transactions) using NFC contactless technology, transactions for a maximum value of Rs 2,000 per transaction are allowed to be undertaken without AFA requirement, subject to explicit consent from the customer and adherence to EMV standards.