2nd password for all credit card online transaction:
Shopping online through foreign websites can come a cropper with the Reserve Bank insisting on an additional password for all kinds of online transactions.The requisition of an additional authentication was hampering online shopping when Indian credit/ debit cards are used on foreign websites and also when foreign cards are used on Indian sites.
In a notification to the banks on Monday,the Reserve Bank of India made it clear that its not going to compromise with the security of online transactions.The central bank on August 1,2009,made a second factor or an additional authentication mandatory for online transaction using credit and debit cards.
Before that,users required only the 16-digit card number and the CVV number for online shopping.According to an official of a public sector bank,some banks continued to provide the facility of online transaction on foreign portal without the second factor authentication.
In this regard,the Reserve Bank issued a clarification that the additional validation is compulsory for all transactions using cards issued in India,for payments on merchant site where no outflow of foreign exchange is contemplated.
Now in India it is safe to use credit card for all online transactions but if it is a US or other country site still one can misuse using your credit card number and CVV number which is on back side of the credit card. Still the credit card holder is at the risk of getting billed in other currencies which needs to be stopped and must go through secondary password. Even for all credit card transaction at merchant site there is a requirement of Pin which will avoid misuse of credit card by a stranger who gets access to any missed credit card and will mis-use till the user reports lost card to credit card issuing bank.