Definition
Two factor authentication is a security mechanism where a user verifies a transaction using two independent authentication factors such as password and OTP.
How this works
During payment, the user enters card or account details. The system then triggers an OTP or authentication challenge that must be verified before approval.
Benefits
• Stronger fraud protection
• Secure customer authentication
• Reduced unauthorized transactions
• Regulatory compliance
FAQs
Why is 2FA required in online payments?
It protects customers against fraud and unauthorized access.
What authentication factors are commonly used?
Password or PIN, OTP, biometric, or device based authentication.
Does 2FA affect payment experience?
It adds an additional step but improves transaction security.
Is 2FA mandatory for all card transactions?
In many countries including India, 2FA is mandated for most online card transactions.