If you have an ecommerce business, payment authentication is one ofthe things you should consider implementing if you want your transactions online to be carried out smoothly. Payment authentication refers to the process of confirming the identity of a customer through at least knowledge, inherence, ownership, and user location.
Knowledge is the most common category used for transaction authentication. The knowledge factor is the information that only the cardholder possesses, such as the personal password, PIN, a secretword such as your mother’s maiden name, your favorite vacation spot, and so on. A knowledge-based authentication factor is also referred to as the challenge-handshake authentication protocol (CHAP).
Thee-commerce market evolves by leaps and bounds, and so do payment authentication tools. One of the trendiest of them is 3D Secure 2(3DS2). The 3DS2 stands for the 3 domains of online payment. This authentication protocol was originally designed by major credit card networks in an effort to combat fraud and chargebacks.
The backbone of the 3DS2 protocol is composed of the issuing bank, the Acquirer(the merchant’s bank), and the payment processor. To be able to process a 3DS2 transaction, your customer will have to go through an extra step in allowing the issuer to identify the client’s identity.
Address Verification System (AVS) is another common payment authentication tool. It isa fraud-prevention tool that was invented by credit card processors and issuing banks. Currently, this helpful credit card processing tool is only available in the United States of America, Canada, and the United Kingdom. The Address Verification System compares the billing address submitted by the payer with the cardholder’s billing address that is provided by the issuing bank.
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