When I purchase anything online, after adding my credit card info, all the payment gateways will forward to a Ui to enter the OTP which I will receive as SMS. This gives me a confident that in order to get money from my card they need both my card information and my personal phone.

But recently when I paired my card with PayPal, all the PayPal transactions got executed without asking my OTP.

How PayPal was able to bypass the security enforced by my local bank, or is its like all the banks give unlimited permissions to PayPal if they have my credit card info.

This makes me feel that using PayPal is little insecure,

Whats your though...

  • What country are you referencing?
    – quid
    Commented Jun 29, 2016 at 16:58

1 Answer 1


There's no requirement to use these OTP systems to process Internet transactions. Some merchants are using them, some are not. PayPal does not since they are not the receiver of the money but rather a merchant processor - so they don't assume any risk anyway and wouldn't bother.

  • Using them may get the merchant better rates, but it's a carrot, not a stick.
    – Bobson
    Commented Jun 29, 2016 at 20:05

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