In the recent years, e-commerce has been going through a boom and the security challenges that come with online transactions have also increased. Below, we take a look at the different payment authentication methods available.
Payment authentication is simply the process of confirming the identity of a customer through at least one of the following authentication factors: knowledge, inherence, ownership, and user location. The e-commerce market evolves by leaps and bounds, and so do payment authentication tools.
One of the trendiest payment authentication tools is 3D Secure 2 (3DS2). The 3DS2 stands for the three domains of online payment. It was originally designed by major credit card networks to combat fraud and charge backs. Its backbone is composed of the issuing bank (or other financial institution issuing a card), the acquirer (the merchant’s bank), as well as the payment processor. For a customer to be able to process a 3DS2 transaction, they will have to go through an extra step in allowing the issuer to identify the client’s identity.
Another common payment authentication tool is address verification systems (AVS). This isa fraud-prevention tool that was invented by credit card processors and issuing banks. Currently, tit is a helpful credit card processing tool that is only available in the US, Canada, and the UK.
The address verification system compares the billing address that is submitted by the payer with the cardholder’s billing address provided by the issuing bank. In most cases, the request for Address Verification is submitted alongside with payment information. Once the payee presents his/her billing address information, the issuing bank responds back with a code corresponding to how accurate the address entered is. As a result, the merchant gets either partial, full, or no address verification system match. Depending on the code returned, a seller can either cancel, investigate, or approve the order.
For more information on the different types ofpayment authentication systems that are available, visit our website at https://loginid.io/
