OAuth2 Resource Owner Password Grant vs Authorization Code Grant in Technology - What is The Difference?

Last Updated Apr 16, 2025

The Authorization Code Grant is a secure OAuth 2.0 flow used to obtain access tokens on behalf of a user by exchanging an authorization code received after user consent. This method enhances security by keeping client credentials confidential and avoids exposing tokens directly to the user agent. Explore the rest of the article to understand how this flow protects your applications and user data effectively.

Table of Comparison

Feature Authorization Code Grant OAuth2 Resource Owner Password Grant
Definition OAuth 2.0 flow where the client exchanges an authorization code for an access token. OAuth 2.0 flow where the client uses the user's credentials directly to obtain an access token.
Security Level High - tokens are exchanged via secure backchannel. Lower - requires user credentials shared with client.
Use Case Third-party web applications with secure backend. Trusted applications where direct user credentials access is acceptable.
User Interaction Requires user login and consent via authorization server UI. Direct submission of username and password.
Token Exposure Access token is never exposed in browser or URL. Access token returned immediately after password validation.
Recommended Usage Preferred for web apps and mobile apps with server backend. Deprecated or discouraged due to security risks; only for legacy trusted apps.

Overview of OAuth2 Authorization Flows

OAuth2 Authorization Code Grant is a secure flow designed for server-side applications where the client exchanges an authorization code for an access token, ensuring user credentials are never exposed directly. In contrast, the Resource Owner Password Grant involves the client directly handling the user's username and password to obtain an access token, generally recommended only for highly trusted applications due to security concerns. Both authorization flows facilitate delegated access but differ significantly in use case scenarios, security levels, and token handling mechanisms within the OAuth2 framework.

What is the Authorization Code Grant?

Authorization Code Grant is an OAuth2 authorization flow designed to securely obtain access tokens by exchanging an authorization code received after user authentication. It enhances security by never exposing user credentials or tokens directly to the client application, instead using a backend server to handle sensitive data. This grant type is ideal for web and mobile applications requiring secure user authentication and token management.

Understanding the Resource Owner Password Grant

The Resource Owner Password Grant in OAuth2 enables clients to obtain an access token by directly using the resource owner's username and password, bypassing the need for an intermediate authorization code. This grant type is suitable only for highly trusted applications since it requires handling user credentials, increasing security risks compared to the Authorization Code Grant, which uses server-side authorization codes to enhance security by keeping credentials away from the client. Understanding the Resource Owner Password Grant involves recognizing its limited use cases, inherent vulnerabilities, and the preference for Authorization Code Grants in modern, secure OAuth2 implementations.

Key Differences Between Authorization Code and Password Grants

Authorization Code Grant involves redirecting the user to the authorization server to authenticate and obtain an authorization code, which is then exchanged for an access token, enhancing security by not exposing user credentials. Resource Owner Password Grant requires the user to provide their username and password directly to the client, which then uses these credentials to request an access token, simplifying the process but increasing exposure risk. The Authorization Code Grant is preferred for web and mobile apps due to its improved security, while Password Grant is suitable only for trusted applications and scenarios requiring legacy support.

Security Implications: Code Grant vs. Password Grant

Authorization Code Grant offers enhanced security by exchanging an authorization code for an access token, minimizing direct exposure of user credentials and supporting secure redirection through the client application. In contrast, the OAuth2 Resource Owner Password Grant requires users to directly share their usernames and passwords with the client, increasing the risk of credential interception or misuse. Code Grant is recommended for third-party applications due to its resilience against phishing and token leakage, whereas Password Grant is best restricted to highly trusted applications within controlled environments.

Use Cases for Authorization Code Grant

Authorization Code Grant is ideal for web and mobile applications requiring secure user authentication with third-party services, as it ensures tokens are exchanged server-side, minimizing exposure to sensitive credentials. It supports scenarios involving user consent and delegated access, such as social login integrations and single sign-on implementations. In contrast, OAuth2 Resource Owner Password Grant is suited for trusted applications needing direct access where the resource owner's credentials are provided, but it is less secure and recommended only for legacy or highly trusted environments.

When to Choose Resource Owner Password Grant

Resource Owner Password Grant is suitable when trusted applications require direct access to user credentials for legacy systems or highly trusted environments. It offers straightforward authentication by exchanging user credentials for access tokens without redirection, beneficial when authorization server and client are tightly controlled. Choosing this grant type requires careful consideration of security risks, as it exposes user credentials directly to the client application.

Pros and Cons of Each Grant Type

Authorization Code Grant offers enhanced security by exchanging an authorization code for tokens via server-to-server communication, minimizing exposure of credentials and tokens to the client, making it ideal for web and mobile applications requiring user consent and secure authentication. Resource Owner Password Grant allows direct exchange of user credentials for access tokens, providing simplicity and faster token acquisition but exposing user credentials to the client, increasing security risks and limiting its use to highly trusted applications or legacy systems. The Authorization Code Grant supports refresh tokens and scopes effectively, promoting long-term access management, whereas Resource Owner Password Grant lacks flexibility and is deprecated in many security frameworks due to its vulnerability to credential theft.

Best Practices for OAuth2 Grant Selection

Authorization Code Grant is recommended for most applications as it provides enhanced security by exchanging an authorization code for an access token through a backend server, minimizing exposure of tokens to client-side applications. OAuth2 Resource Owner Password Grant should be avoided except in highly trusted scenarios, since it involves handling user credentials directly, increasing risk and reducing adherence to modern security standards. Best practices dictate using Authorization Code Grant with Proof Key for Code Exchange (PKCE) for public clients and ensuring minimal privilege scopes to improve security posture and user trust.

Conclusion: Choosing the Right OAuth2 Flow

Authorization Code Grant offers enhanced security by requiring user interaction and redirecting authorization through a trusted client, making it ideal for web and mobile applications where confidentiality is crucial. OAuth2 Resource Owner Password Grant, while simpler and faster for trusted applications, poses higher security risks due to direct handling of user credentials and is generally discouraged for third-party clients. Selecting the appropriate OAuth2 flow depends on balancing security needs with user experience, prioritizing Authorization Code Grant for external clients and reserving Resource Owner Password Grant for controlled, first-party applications.

Authorization Code Grant Infographic

OAuth2 Resource Owner Password Grant vs Authorization Code Grant in Technology - What is The Difference?


About the author. JK Torgesen is a seasoned author renowned for distilling complex and trending concepts into clear, accessible language for readers of all backgrounds. With years of experience as a writer and educator, Torgesen has developed a reputation for making challenging topics understandable and engaging.

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The information provided in this document is for general informational purposes only and is not guaranteed to be complete. While we strive to ensure the accuracy of the content, we cannot guarantee that the details mentioned are up-to-date or applicable to all scenarios. Topics about Authorization Code Grant are subject to change from time to time.

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