What is a token?

Token has now become a very familiar term in online electronic transactions. So what does token mean?

Online transactions are no stranger to today's users as most banks offer online banking applications to use. And the term Token is very familiar with banking transactions in securing interfaces. So what exactly is a token and what does it mean?

What is a token?

Token is a form of digital signature or digital signature which is encrypted into numbers on specialized equipment. The generated Token code is OTP code, used once and randomly generated. There are 2 types of tokens:

  1. Hard Token: A device as compact as a USB. Every time you trade, you'll use this device to get codes.
  2. Soft Token: Is a software installed on your computer or phone / tablet and also provides Token code for you when trading.

Tokens are used in businesses for normal transactions, especially online transactions to ensure transaction confirmation. Such transactions are certainly performed and signed by the performers. When you make online banking transactions, you need to log in with your account information and the OTP code sent to the device from the banking system. These OTP codes are generated by Token devices and are disposable, random and valid for only about 60 seconds.

Picture 1 of What is a token?

OTP codes sent via SMS sent from banks with E-Banking application are free. As for new Token, there are currently banks that provide HSBC, Techcombank, Sacombank, VP Bank, . If customers need, they need to pay an additional fee of 200,000-400,000 VND.

Pros and cons of Token

Token has safety advantages, because it is only used once and randomly, has a time limit, so it is guaranteed for users. If using a token machine, it is quite compact and convenient. Simple reuse.

However, the disadvantage of Token is that if you use a Token machine, you must have a machine to make transactions. The shelf life is only 60 seconds, so it should be short if you encounter problems during the operation.

Picture 2 of What is a token?

See more:

  1. Online banking account security methods
  2. How to register Techcombank Smart OTP to get authentication code
  3. How to check your ATM card belong to any bank?
  4. Can locked ATM cards be withdrawn or transferred?
Update 16 November 2019
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