What is the OTP code and what is it used for?

To sum up, we would say that an OTP code is an SMS message you receive on a mobile device. This code is one of the validation processes of an operation you will perform with your accounts or credit cards, among others.

Even if you already know what it is, it may be interesting to know how they work and why these OTP notifications are applied.

What is OTP

Every day we attach more and more importance to innovation applied to our financial services. That extends, of course, to the security tools available to you. One of these is what is known as an OTP code. Although it may not ring a bell at first, you will soon find that you are familiar with it, and you will surely also realize that it is one of the fundamental security tools for protecting your financial products.

A secure environment to control and manage our Openbank cards offers confidence in a good card configuration. In the same way, from the web application, we can operate with security and peace of mind on our bank accounts. But, a key element when you get ready to perform operations, in addition to a secure environment, is to have added security factors to the procedures. And this is when OTP notifications arise.

The first thing to understand is that it is a TAN code, but wasn’t it an OTP code? Indeed, but an OTP key is, in turn, a TAN code. It doesn’t sound very easy, but it is.

When we speak of a TAN code (TransAction Number), we are referring, as its name suggests, to a transaction number that allows an operation to be carried out.

It is, for example, a key system similar to a PIN. However, there can be different types of TANs. When it comes to increasing security, the OTP (one-time password) code is applied, which means something like a single-use password.

Therefore, when we receive OTP notifications, the fundamental characteristic is that it is a security element composed of six digits. This code is going to help verify a transaction. It will only be valid for that transaction and a limited period.

It is one of the most commonly used tools within the verification processes to authorize transactions of your banking products.

How to use an OTP key

When you are going to carry out an operation on the Internet with your bank account, you will have already passed, first of all, the user’s filter and password. Secondly, you will also have to enter the signature key, and then it’s time for the OTP code.

You will receive an SMS message on the mobile device associated with your account with a code that will only use for that operation and at that time. For your security, this code has a limited time duration. When this time elapses, if it has not been entered, it expires and will no longer be used to validate the transaction.

This validation offers you a higher level of security in all the operations to which you link it. But it is also part of the security structure that seeks to protect against fraud attacks, and data theft can cause. In short, different layers of security are generated that are increasingly private and depend more on your direct control.

The good thing about all this is that you can also configure the reception of these OTP codes according to different criteria. For example, you can set minimum transfer or payment amounts on which to implement or not the OTP code on your account and credit cards.

A good example is the one we received applied to the full potential of mobile payment. The security measures, such as OTP notifications, are a fundamental part of operating with peace of mind and confidence.