Transaction authentication number: Difference between revisions

Revision as of 15:12, 28 August 2009

Revision as of 16:07, 20 October 2009

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An outline of how TANs function:

# The bank creates a set of unique TANs for the user. Typically, there are 50 TANs printed on a list, each six or eight characters long, which is enough to last half a year for a normal user; each TAN being six or eight characters long.

# The user picks up the list from the nearest bank branch (presenting a [[passport]], an [[ID card]] or similar document) or is sent the TAN list through mail.

# The password (PIN) is mailed separately.

# To log on to his/her account, the user must enter user name (often the account number) and password (PIN). This may give access to account information but the ability to process transactions is disabled.

# To perform a transaction, the user enters the request and authorizedauthorizes the transaction by entering an unused TAN. The bank verifies the TAN submitted against the list of TANs they issued to the user. If it is a match, the transaction is processed. If it is not a match, the transaction is rejected.

# The TAN has now been consumed and will not be recognized for any further transactions.

# If the TAN list is compromised, the user may cancel it by notifying the bank.