What Is a Credit Card PIN? (PIN vs OTP, ATM vs Swipe)

If you are new to credit cards, you may have heard the word PIN and felt confused about when and why it is used.

Many beginners mix up PIN and OTP, or think a credit card PIN works the same way as a debit card PIN. In this article, we explain everything in very simple language.

If you are completely new, read this first:
What Is a Credit Card?

1️⃣ What Is a Credit Card PIN?

A credit card PIN (Personal Identification Number) is a secret numeric code, usually 4 to 6 digits long, that helps verify that you are the real cardholder.

The PIN is mainly used for:

• ATM cash withdrawals (How Credit Card Payments Work)
• Some in-store card transactions
• Extra security in certain regions

Unlike a debit card, a credit card PIN is not used for every transaction.

2️⃣ Why Does a Credit Card Have a PIN?

The main purpose of a credit card PIN is security.

If someone steals your credit card, they cannot withdraw cash or complete PIN-based transactions without knowing the PIN.

This protects your credit card account from misuse.

3️⃣ Credit Card PIN vs OTP (Very Important)

Beginners often confuse these two. Let’s clearly understand the difference.

🔐 Credit Card PIN

• Fixed number chosen by you
• Used mainly at ATMs or POS machines
• Does not change unless you change it

📩 OTP (One-Time Password)

• Sent by bank via SMS or app
• Used for online transactions (Online Payment Guide)
• Valid for a few minutes only

Important: Never enter your credit card PIN on shopping websites. Online payments use OTP, not PIN.

4️⃣ Where Is a Credit Card PIN Used?

🏧 ATM Usage

You need a credit card PIN to withdraw cash from an ATM using your credit card.

This is called a cash advance and usually has:

• High interest
• Additional fees

Because of this, beginners are advised to avoid ATM withdrawals using credit cards.

🛒 Store Purchases (Swipe / Insert / Tap)

In most countries:

• Swipe or tap → No PIN required
• Insert card → PIN may be required

Rules depend on the country and card network (Credit Card Network Guide).

5️⃣ ATM vs Swipe vs Online (Simple Table Explanation)

• ATM Withdrawal: PIN required
• In-store Swipe/Insert: Sometimes PIN, sometimes signature
• Online Shopping: OTP required, not PIN

6️⃣ How to Set or Change Your Credit Card PIN

You can set or change your credit card PIN using:

• Bank ATM
• Mobile banking app
• Internet banking
• Customer care support

Always choose a PIN that is hard to guess.

7️⃣ Safety Tips for Beginners

• Never share your PIN with anyone
• Do not write PIN on the card
• Cover keypad while entering PIN
• Change PIN if you suspect misuse
• Do not store PIN in phone notes

Banks will never ask for your PIN over phone or email.

8️⃣ Common Beginner Mistakes

• Using credit card PIN for online payments
• Sharing PIN with shopkeepers
• Thinking PIN is same as debit card PIN
• Using credit card for ATM cash often

Avoiding these mistakes keeps your credit card safe.

9️⃣ Do You Need a Credit Card PIN Always?

No. Many people use credit cards for years without ever using the PIN.

You only need it when:

• Withdrawing cash from ATM
• Required by POS machine
• Setting up card security

🔟 Final Thoughts

A credit card PIN is a security tool, not a daily-use password.

Use it carefully, protect it properly, and understand when it is needed. Once beginners understand the difference between PIN and OTP, credit card usage becomes much safer and stress-free.