What is the OTP code? Let's Get to Know the Functions!

If you often make online transactions, you have definitely been asked to enter an OTP code. So, actually, what is an OTP code? 

OTP code is an abbreviation for One-Time Password, a unique code that can only be used once. This code is usually sent via SMS, email, or a special application when you verify an online transaction.

The Importance of OTP Codes for Transaction Security

So, the OTP (One-Time Password) code is not just an ordinary number sent to your cellphone when making an online transaction. This code is an additional layer of protection, designed to keep personal and financial data safe from unauthorized access.

In today's digital era, where online transactions and activities are increasingly widespread, this kind of protection is very important to avoid the risk of data theft.

Just think, If every online payment or login to an important account you only rely on your username and password. The risk of data leakage will be much greater. 

Someone who manages to get your username and password combination can easily access your account or even carry out transactions without permission. Therefore, the OTP code is here to close this gap by ensuring that only the owner of the registered cellphone number can complete the transaction process.

One of the reasons why OTP codes are so safe is because they are temporary. This code is only valid for a short time, usually around 5 minutes. If the code is not used within this period, it will automatically expire. 

With this time limit, even if someone knows the OTP code you received, they will not be able to misuse it if the time limit has expired.

In addition, the OTP code is unique for each transaction or login made. So, every time you carry out an activity that requires additional verification, the code will be different from the previous code. 

Well, this makes the opportunity for misuse even smaller. The combination of limited time and unique codes makes OTP an effective security solution.

This shows that the OTP code provides additional control to users to ensure that all their digital activities are safe from third party interference. 

In other words, the OTP code is the last bastion, ensuring that digital transactions can only be completed by people who actually have access to the registered cellphone number.

However, there is one thing you must always remember, namely that the OTP code is confidential. Never share this code with anyone, including people claiming to be from a bank or other digital service. 

Many cases of fraud occur because the victim unknowingly provides the OTP code to the perpetrator. Always make sure that you only use the OTP code on official and trusted platforms.

Read Also: What is a Payment Gateway and Payment Aggregator? Check the Difference!

How OTP Codes Work?

As discussed, pHave you ever wanted to log in to an important application or make an online payment, when you were asked to enter a special code sent to your cellphone? 

Well, that's what is called an OTP (One-Time Password) code. This code functions as an additional layer of security to ensure that the person carrying out the transaction or logging in is really you, not someone else.

For example, when you want to pay for online groceries with a debit or credit card. After filling in the card details, the bank system will send an OTP code to the registered mobile number. 

This code usually consists of a unique six-digit number that is only valid for a few minutes. Once the OTP code is received, all you have to do is enter it in the column provided on the screen. 

If the code entered is correct, the transaction will be processed immediately. However, if it is wrong or the code has expired, the transaction will automatically be rejected. So, this OTP code is very important to protect your information and money from data theft or unauthorized transactions.

Well, with the OTP code, the digital security system becomes stronger. Therefore, always make sure your registered cellphone number is active and never share the OTP code with other people, to maintain the security of your account and transactions.

Why are OTP Codes Important in the Business World?

Not only for ordinary users, what an OTP code is is also important for business people. Businesses that implement OTP codes in their transaction systems show that they care about customer security. 

By providing an additional layer of security, customers will feel more comfortable and confident when making transactions. For example, in the Food and Beverage (F&B) sector, the use of POS applications such as ESB POSLite You can use the OTP code to increase the security of the transaction system. 

In ESB POSLite, there is a special feature to Generate OTP which is very useful for cashiers who need to cancel a table or void a transaction. Here are the steps:

1. Access the Generate OTP Feature

The cashier can press the “Generate OTP” button in the Account Settings menu.

2. Go to the Generate OTP page

After that, users will be directed to the Generate OTP page.

3. Fill in the Transaction Number

The cashier needs to enter the transaction number to be processed.

4. Select OTP Type

There are several OTP type options, such as Cancel Table or Void Sale.

5. Generate OTP

Press the “Generate OTP” button to get the code.

6. Copying OTP Code

The code can be copied by pressing the “Copy” button.

7. Cashier Inputs OTP

The cashier enters the code into the system.

8. Processing Void

After entering the cancellation code and reason, the void transaction can be processed.

Benefits of Using ESB POSLite for F&B Business

If you have an F&B business, ESB POSLite is the best choice! This application offers various features that make managing your business easier. Through the integration of Grabfood and Gofood, all online sales can be recorded automatically. The payment system is also complete, starting from OVO, Dana, to QRIS. Top features include:

• Integration with Grabfood & Gofood: Record online sales automatically.
• Online Payment System: Accept payments from various methods.
• Business Tips with AI: Get personalized business advice.
• Inventory Management: Manage menu stock easily.
• Sales Reports: Monitor business performance with comprehensive reports.
• Offline Mode: You can still make transactions even without internet.

Also Read: Angon Jiwo's Reason for Choosing ESB POS for Efficient Operations

Conclusion

Now you know what an OTP code is and how important it is in maintaining transaction security. Not only for ordinary users, OTP codes are also an effective security solution for businesses. 

For those of you who want your F&B business to be safer and more efficient, just try ESB POSLite. The features are certainly complete and the security is high, really! Your business will definitely run smoother, good luck!