A personal transaction number (PTAN) is a single-use password or code employed to authorize online banking transactions. It represents a security measure implemented to confirm the user’s identity and intent to execute a specific financial operation, such as transferring funds or paying bills. As an example, a bank may send a unique code to a customer’s registered mobile phone number when initiating a transfer online; that code must be entered on the banking website to complete the transaction.
This authorization mechanism provides a significant layer of security against unauthorized access and fraudulent activities in the digital banking sphere. Its implementation is often mandated by regulatory bodies and is a component of strong customer authentication protocols. Historically, these single-use codes have evolved from physical token generators to SMS-delivered codes, and more recently, to authentication apps offering increased security and user convenience.
