In the recent years, ecommerce has been going through a boom and the securitychallenges that come with online transactions have increased as well. There are different payment authentication methods that you can take advantage of as a business person to ensure your data and systems are secure.
So, what is payment authentication? Itis the process of confirming a customer’s identity through at least one of thefollowing authentication factors: knowledge, inherence, user location and ownership. Knowledge is the most common category used for transaction authentication. The knowledge factor refers to the information that only the card holder possesses, such as a personal password, PIN, a secret word like your favorite vacation spot, your mother's maiden name, etc.
A knowledge-based authentication factor is also referred to as the Challenge-Handshake Authentication Protocol (CHAP). Here is how it works: After the payment request is made, the server will send a challenging question to the customer. The customer will then respond with sensitive data only they possess. The server will check the response and if the answer matches the expected hash value, the authentication is then acknowledged. Otherwise, the transaction is declined.
Just like the knowledge factor, the ownership authentication factor make use of a pieceof information that only the user possesses. But, unlike the previous facto that can easily be passed on to a friend or a relative, the ownership factor cannot be shared. The typical examples of ownership authentication are a signature, a key, a token, or a certificate.
The inherence factor is the most sophisticated of the four, and its authentication includes biodata confirmation, like face recognition, voice recognition, or iris recognition. User location can also be considered an authentication factor. Many devices that connect to the internet have some type of GPS, which enables reliable location confirmation. If the location of a user does not match a record in their bank file, the transaction may be declined.
For more information on the different methods ofpayment authentication , visit our websiteat https://loginid.io/
