{"id":41485,"date":"2024-08-01T11:21:39","date_gmt":"2024-08-01T15:21:39","guid":{"rendered":"https:\/\/chargebacks911.com\/?p=41485"},"modified":"2026-03-25T13:51:53","modified_gmt":"2026-03-25T17:51:53","slug":"payment-authentication","status":"publish","type":"post","link":"https:\/\/chargebacks911.com\/payment-authentication\/","title":{"rendered":"Payment Authentication"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">How Does Payment Authentication Work? What Methods Can You Use To Validate Buyers?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s say you\u2019re trying to process a transaction at a brick-and-mortar. There are some pretty basic ways to know if the customer on the other side of your checkout counter is actually the person they claim to be.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Chip readers and PIN codes can help authenticate the buyer. You can ask for additional validation, too, such as a driver\u2019s license. Plus, if you&nbsp;<a href=\"https:\/\/chargebacks911.com\/credit-card-decline-codes\/\">receive a decline code<\/a>, you can simply ask the customer to try a different payment method.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What about online transactions, though? You never come face-to-face with your customer. So, how do you know they\u2019re not an impostor?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this post, we\u2019ll examine payment authentication best practices, and outline how you can validate buyers and recognize potential fraud with a high degree of accuracy.<\/p>\n\n\n<div class=\"c-suggested-reading\"><div class=\"c-suggested-reading__inner\"><div class=\"c-suggested-reading__header\"><h3 class=\"c-suggested-reading__headline\">Recommended reading<\/h3><\/div><ul class=\"c-suggested-reading__items\"><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/verified-by-visa\/\" class=\"c-suggested-reading__link\">Verified by Visa: How Much Protection Does 3DS Offer?<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/fraud-blacklists\/\" class=\"c-suggested-reading__link\">Fraud Blacklisting &amp; Whitelisting: The Right Move for You?<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/eci-indicator\/\" class=\"c-suggested-reading__link\">ECI Indicators: How to Understand 3DS Response Codes<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/3-d-secure-verification-failed\/\" class=\"c-suggested-reading__link\">3-D Secure Verification Failed? Here\u2019s How to Fix it.<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/transaction-risk-analysis\/\" class=\"c-suggested-reading__link\">What is Transaction Risk Analysis? How Does it Work?<\/a><\/li><li class=\"c-suggested-reading__item\"><a href=\"https:\/\/chargebacks911.com\/strong-customer-authentication-sca\/\" class=\"c-suggested-reading__link\">Strong Customer Authentication: What You Should Know in <\/a><\/li><\/ul><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What Is Payment Authentication?<\/h2>\n\n\n\n<dl class=\"definition_box\" class=\"wp-block-cb911-block-library-definitions\"><div class=\"definition\"><div class=\"definition_top\"><h3><dt>Payment Authentication<\/dt><\/h3><p>[noun]\/<em><\/em><em>p\u0101 \u2022 muhnt \u2022 aa \u2022 then \u2022 tuh \u2022 kay \u2022 shn<\/em>\/<\/p><\/div><dd><p>Payment authentication is the process of verifying the identity of the party on the other end of a transaction. This is done by merchants, who need to verify that their customers are authorized to use a specific payment card.<\/p><\/dd><\/div><\/dl>\n\n\n\n<p class=\"wp-block-paragraph\">As the name implies, payment authentication most often refers to the process of verifying the identity of a customer during a payment card transaction. You check the information provided by the buyer against the info on file with the company that issued the card. If the information doesn\u2019t&nbsp;<a href=\"https:\/\/chargebacks911.com\/match-list\/\">match<\/a>, you should check to make sure a cardholder\u2019s account isn\u2019t being used for unauthorized purchases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Payment authentication lets you verify a buyer\u2019s identity. You can ensure that only authorized individuals are using payment cards for purchases. This protects your businesses from potential losses due to fraud (and the resulting <a class=\"wpil_keyword_link\" href=\"https:\/\/chargebacks911.com\/chargebacks\/\"   title=\"Chargebacks 101\" data-wpil-keyword-link=\"linked\"  data-wpil-monitor-id=\"2012\">chargebacks<\/a>).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In short: payment authentication offers added you \u2014 and the financial institutions that work with you \u2014 some security and peace of mind.<\/p>\n\n\n\n<div class=\"c-category-alert c-category-alert--teal\">\n    <span class=\"c-category-alert--teal__icon\">\n        <object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/06\/reminder-hands-05.svg\" width=\"20\" height=\"20\"><\/object>\n    <\/span>\n    <span class=\"c-category-alert--teal__heading\">Did You Know?<\/span>\n    <p class=\"c-category-alert--teal__description\"><em>Experts estimate that more than<\/em><a href=\"https:\/\/atlasvpn.com\/blog\/cybercrime-cost-the-world-over-1-trillion-usd-in-2020\" target=\"_blank\" rel=\"noreferrer noopener\"><em> $1 trillion was lost to cybercrime<\/em><\/a><em> in 2020; roughly 1% of global GDP that year.<\/em><\/p>\n<\/div>\n\n\n\n<div class=\"c-shortcode-ebook c-shortcode-ebook--whitepaper\"><a href=\"https:\/\/chargebacks911.com\/chargeback-field-report\/\" class=\"c-shortcode-ebook__block\"><div class=\"c-shortcode-ebook__inner\"><div class=\"c-shortcode-ebook__graphics\"><div class=\"c-shortcode-ebook__graphics-inner\"><div class=\"c-shortcode-ebook__ipad\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/ipad--field-report.png\" alt=\"2022\" chargeback=\"\" field=\"\" report=\"\"\/>\n\t\t\t<\/div>\n\t\t\t<div class=\"c-shortcode-ebook__cover\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/cover--field-report.png\" alt=\"2022\" chargeback=\"\" field=\"\" report=\"\"\/>\n\t\t\t<\/div><\/div><\/div><div class=\"c-shortcode-ebook__content\"><span class=\"c-shortcode-ebook__title\"><span>A Real-World Look at<\/span> Chargeback Management<\/span><p class=\"c-shortcode-ebook__description\">Based on a survey of over 400 merchants, the report presents a comprehensive, cross-vertical look at the current state of chargebacks and chargeback management.<\/p><span class=\"c-btn c-btn--primary c-shortcode-ebook__btn\">Access the FREE Report<\/span><\/div><\/div><div class=\"c-shortcode-ebook__close\" data-shortcode-ebook-close=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 20 20\" fill=\"currentColor\"><path fill-rule=\"evenodd\" d=\"M4.293 4.293a1 1 0 011.414 0L10 8.586l4.293-4.293a1 1 0 111.414 1.414L11.414 10l4.293 4.293a1 1 0 01-1.414 1.414L10 11.414l-4.293 4.293a1 1 0 01-1.414-1.414L8.586 10 4.293 5.707a1 1 0 010-1.414z\" clip-rule=\"evenodd\"><\/path><\/svg><\/div><\/a><div class=\"c-shortcode-ebook__overlay\"><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How Does The Payment Authentication Process Work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The buyer gives you their card info. You send it to the bank, and get a response. Simple enough, right?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The truth is that requesting and authenticating a payment is a pretty complex process, involving a bunch of different players. There\u2019s your gateway provider, your processor, and your acquirer, plus the card network and the card issuer. It looks something like this:<\/p>\n\n\n\n<div class=\"c-share-svg c-share-svg--hover\">\r\n\t\t\t\t\t\t<div class=\"c-share-svg__inner\">\r\n\t\t\t\t\t\t\t<object type=\"image\/svg+xml\" data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/03\/Payment-Authentication-Process-FF.svg\" width=\"100%\" height=\"100%\" class=\"c-share-svg__object\"><\/object>\r\n\t\t\t\t\t\t<\/div>\r\n\r\n\t\t\t\t\t\t<div class=\"c-share-svg__hover\">\r\n\t\t\t\t\t\t\t<button class=\"c-share-svg__button js-share-svg-button\" data-source=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/03\/Payment-Authentication-Process-FF.svg\" data-url=\"https:\/\/chargebacks911.com\/payment-authentication\/\">Embed This Graphic<\/button>\r\n\t\t\t\t\t\t<\/div>\r\n\t\t\t\t\t<\/div>\n\n\n\n<div class=\"c-shortcode-question c-shortcode-question--inline\"><div class=\"c-shortcode-question__inner\"><span class=\"c-shortcode-question__heading\">Common Question<\/span><span class=\"c-shortcode-question__title\">Are authentication and authorization the same thing?<\/span><span class=\"c-shortcode-question__response\">No, authentication and authorization are different processes. Authentication verifies the identity of a user or cardholder. Authorization determines what resources an authenticated user is allowed to access, or what actions they can perform.<\/span><\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s zoom in a little, though, and focus on the authentication part. Authentication technologies get deployed at several steps in the process. You and your processor will both probably deploy some fraud-detection tools, and so will the issuing bank. This redundancy makes it more likely that an anomaly will get spotted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These are the three key strategies each party can deploy:<\/p>\n\n\n\n<div class=\"c-icon-boxes\">\n    <div class=\"c-icon-box c-icon-box--two\">\n        <div class=\"c-icon-box__inner\">\n            <div class=\"c-icon-box__icon\">\n                <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/03\/NEW-ICONS-DuoTone-magnifying-glass-warning.svg\" alt=\"Anomaly Detection\"\/>\n            <\/div>\n            <h3 class=\"c-icon-box__title\">Anomaly Detection<\/h3>\n            <p class=\"c-icon-box__copy\">Analyzing internal and external data points to produce a framework of \u201cnormal\u201d activity, and gauging transaction data points against that benchmark.<\/p>\n        <\/div>\n    <\/div>\n\n    <div class=\"c-icon-box c-icon-box--two\">\n        <div class=\"c-icon-box__inner\">\n            <div class=\"c-icon-box__icon\">\n                <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2023\/03\/NEW-ICONS-DuoTone-ai-brain.svg\" alt=\"Predictive Modeling\"\/>\n            <\/div>\n            <h3 class=\"c-icon-box__title\">Predictive Modeling<\/h3>\n            <p class=\"c-icon-box__copy\">Using machine learning to analyze historical data points. This helps detect patterns of fraud and predict how likely a particular transaction is to be fraudulent.<\/p>\n        <\/div>\n    <\/div>\n\n     <div class=\"c-icon-box c-icon-box--two\">\n        <div class=\"c-icon-box__inner\">\n            <div class=\"c-icon-box__icon\">\n                <img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Speed-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz_DuoTone-Iconz-copy-8.svg\" alt=\"Risk Scoring\"\/>\n            <\/div>\n            <h3 class=\"c-icon-box__title\">Risk Scoring<\/h3>\n            <p class=\"c-icon-box__copy\">Analyzing transactions based on factors like location, merchant type, and purchase amount. This information helps determine whether to approve a transaction.<\/p>\n        <\/div>\n    <\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What Payment Authentication Factors Can You Examine?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Most methods you can use to help authenticate customer payments fall into one of four categories:<\/p>\n\n\n\n<div class=\"c-icon-list\">\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Authenticate-Buyers-DuoTone-Lineal-Icons_DuoTone-Iconz-copy-23.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Ownership<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">Ownership, or possession, is based on a physical object in the buyer\u2019s possession. For example, entering a one-time code texted to their phone would demonstrate that the buyer possessed that phone.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/01\/NEW-ICONS-DuoTone-Lineal-Icons-chris-update_DuoTone-Iconz-copy-40-107.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Knowledge<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">This refers to information that only the cardholder should know. A PIN code, for example, or a personal password. It may also be the answer to a security question, such as the name of a pet or the maiden name of a relative.<\/p>\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"c-shortcode-question c-shortcode-question--inline\"><div class=\"c-shortcode-question__inner\"><span class=\"c-shortcode-question__heading\">Common Question<\/span><span class=\"c-shortcode-question__title\">What is CHAP?<\/span><span class=\"c-shortcode-question__response\">Challenge-Handshake Authentication Protocol, or CHAP, is a 3-way challenge-and-response verification tool. The protocol establishes a temporary token, or \"handshake,\" between your site and the cardholder. The handshake can be periodically checked throughout the session for further security.<\/span><\/div><\/div>\n\n\n\n<div class=\"c-icon-list\">\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Fingerprint-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz-copy-29.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Inherence<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">Inherence doesn't test what a buyer knows. Instead, it tests something that a buyer inherently&nbsp;is. This often means biometric information, and could include a fingerprint, voice recognition, or face recognition.<\/p>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/01\/Triangulation-Fraud-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz-copy-60.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Location<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">Data from the buyer\u2019s GPS or IP address is compared against historical buying patterns. Significant variances, such as large orders from a different country, or mismatches between shipping and billing information, may indicate fraud.<\/p>\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What is Strong Customer Authentication?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Employing at least some type of payment authentication solution is highly recommended. In some cases, though, it might be a requirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More and more governments are trying to fight fraud by implementing strict mandates for buyer validation. The use of&nbsp;<a href=\"https:\/\/chargebacks911.com\/strong-customer-authentication-sca\/\">strong customer authentication (SCA)<\/a>, for example, is now a law in the European market.<\/p>\n\n\n<div class=\"cta-ab\"><span class=\"cta-ab__cta-content\">Are you sure that shopper is an authorized cardholder?<\/span><span class=\"hs-cta-wrapper\" id=\"hs-cta-wrapper-f46a4ca9-3755-4911-b18a-8ad344729c8e\"><span class=\"hs-cta-node hs-cta-f46a4ca9-3755-4911-b18a-8ad344729c8e\" id=\"hs-cta-f46a4ca9-3755-4911-b18a-8ad344729c8e\"><!--[if lte IE 8]><div id=\"hs-cta-ie-element\"><\/div><![endif]--><a href=\"#\"  target=\"_blank\" data-open-demo-modal><img decoding=\"async\"  class=\"hs-cta-img\" id=\"hs-cta-img-f46a4ca9-3755-4911-b18a-8ad344729c8e\" style=\"border-width:0px;\" src=\"https:\/\/no-cache.hubspot.com\/cta\/default\/2611577\/f46a4ca9-3755-4911-b18a-8ad344729c8e.png\"  alt=\"REQUEST A DEMO\"\/><\/a><\/span><\/span><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">SCA requires merchants to \u201cdouble-down\u201d on payment authentication during checkout. Verification by card number, address, and CVV is no longer enough. Transactions in the European Union or the United Kingdom now have to verify the buyer\u2019s identity based on <em>at least<\/em> two factors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These two-factor checks must be verified to the issuing bank\u2019s satisfaction. If SCA standards are not met, or are not&nbsp;<a href=\"https:\/\/chargebacks911.com\/transaction-risk-analysis\/\">offset by transaction risk analysis,&nbsp;<\/a>then the transaction will be declined.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Tools Can I Use For Payment Authentication?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Different tools let you to obtain authentication information in different ways. Here are a few of the most common \u2014 and most effective \u2014 tools for payment authentication:<\/p>\n\n\n\n<div class=\"c-icon-list\">\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2019\/07\/NEW-ICONS-DuoTone-Lineal-Icons-July2022-Update_DuoTone-Iconz-231.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">CVV Code<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">If you're not requiring your customers to <a href=\"https:\/\/chargebacks911.com\/card-verification-value\/\" title=\"Card Verification Value\">enter the CVV (Card Verification Value) code<\/a> on all orders, you're ignoring a powerful (and free) authentication device. Having access to this 3- or 4-digit number means the buyer is likely in possession of the actual credit card. The CVV cannot be stored with other cardholder data: thieves cannot&nbsp;<a href=\"https:\/\/chargebacks911.com\/data-breaches\/\">obtain that information through a data breach<\/a>.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/card-security-codes\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about CVV codes<\/a>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2022\/06\/NEW-ICONS-DuoTone-safe-home-house-protected-shield.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Address Verification<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">AVS (<a class=\"wpil_keyword_link\" href=\"https:\/\/chargebacks911.com\/fraud-prevention\/address-verification-service\/\" title=\"Address Verification Service\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"3831\">Address Verification Service<\/a>) is used when you request authorization for a customer credit card purchase. It automatically checks the billing address submitted by the shopper against the cardholder's billing address on record at the issuing bank. You'll receive a code that indicates how much of the address matches, and can decide how to proceed from there.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/fraud-prevention\/address-verification-service\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about AVS<\/a>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/3d-Secure-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz_DuoTone-Iconz_DuoTone-Iconz-copy-7.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">3-D Secure<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">3-D Secure\u00a0Version 2.0 and later (or just \u201c3DS2\u201d) checks an estimated 150 verification details automatically and in real-time. Billing address, transaction history, device ID, geolocation, and more are compared to confirm a customer\u2019s identity. Most 3D Secure payment authentication is frictionless. And, unlike the original version, 3DS2 can be used for mobile payment authentication.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/fraud-prevention\/3-d-secure\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about 3-D Secure<\/a>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Tokenization-DuoTone-Lineal-Icons_DuoTone-Iconz-copy-35.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Tokenization<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">Payment card <a class=\"wpil_keyword_link\" href=\"https:\/\/chargebacks911.com\/tokenization\/\" title=\"Tokenization\" data-wpil-keyword-link=\"linked\" data-wpil-monitor-id=\"2727\">tokenization<\/a> means that the cardholder\u2019s primary account number is swapped for an algorithmically-generated token. This digital token represents information, but is meaningless by itself. Even if a fraudster manages to hack the transaction, no actual account details are exposed, meaning the data cannot be used for future fraud.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/tokenization\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about tokenization<\/a>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Fingerprint-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz-copy-29.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Fingerprinting<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">Any time a user visits your site, they leave behind hundreds of potential indicators. These include IP address, browser, time zone, operating system, and more. This combined data creates a type of digital \u201cfingerprint\u201d of users based on the device used to access the site. With device fingerprinting, you can block devices associated with known bad actors and use the data to fine-tune your prevention strategy.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/device-fingerprinting\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about device fingerprinting<\/a>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Address-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz-copy-6.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Geolocation<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">Geolocation uses the wifi signals a device accessed to determine the geographic location of the shopper. Geolocation can\u2019t authenticate the user\u2019s actual identity, but it can supply clues. If a payer's card is registered in the US, for example, but the order is being sent from southeast Asia, it\u2019s worth double-checking to ensure the transaction is legitimate.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/geolocation\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about geolocation<\/a>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"c-icon-list__item\"><div class=\"c-icon-list__icon\"><object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2021\/12\/Speed-DuoTone-Lineal-Icons_DuoTone-Iconz_DuoTone-Iconz_DuoTone-Iconz-copy-8.svg\" type=\"image\/svg+xml\"><\/object><\/div><div class=\"c-icon-list__content\"><h3 class=\"c-icon-list__title\">Velocity Checks<\/h3><div class=\"c-icon-list__text\">\n<p class=\"wp-block-paragraph\">When fraudsters identify a valid card number, they\u2019ll typically run repeated transactions as quickly as possible. The goal is to buy as much as possible before being discovered. Velocity checks scan transaction variables such as name, shipping address, and order frequency, looking for information actions within a specified time period. Too many of the same orders could indicate fraud.<\/p>\n\n\n<a href=\"https:\/\/chargebacks911.com\/velocity-checks\/\" class=\"c-btn c-btn-lg c-btn-default\">Learn more about velocity limits<\/a>\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"c-category-alert c-category-alert--red\">\n    <span class=\"c-category-alert--red__icon\">\n        <object data=\"https:\/\/chargebacks911.com\/wp-content\/uploads\/2020\/03\/reminder-hands-01.svg\" width=\"20\" height=\"20\"><\/object>\n    <\/span>\n    <span class=\"c-category-alert--red__heading\">Important!<\/span>\n    <p class=\"c-category-alert--red__description\"><em>There\u2019s no \u201ckiller app\u201d for fraud prevention. Payment authentication will require you to use multiple different tools. Then, with more redundancies in place, you can build a better profile of each buyer and engage in better, more accurate, and informed fraud decisioning.<\/em><\/p>\n<\/div>\n\n\n\n<div class=\"c-shortcode-ebook c-shortcode-ebook--guide\"><a href=\"http:\/\/ad.chargebacks911.com\/rebuttal-letter-ebook-lp\/\" class=\"c-shortcode-ebook__block\" target=\"_blank\"><div class=\"c-shortcode-ebook__inner\"><div class=\"c-shortcode-ebook__graphics\"><div class=\"c-shortcode-ebook__graphics-inner\"><div class=\"c-shortcode-ebook__ipad\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/ipad--rebuttal-letters.png\" alt=\"Writing\" winning=\"\" chargeback=\"\" rebuttal=\"\" letters=\"\"\/>\n\t\t\t<\/div>\n\t\t\t<div class=\"c-shortcode-ebook__cover\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/chargebacks911.com\/wp-content\/themes\/CB911\/assets\/img\/shortcodes\/ebooks\/cover--rebuttal-letters.png\" alt=\"Writing\" winning=\"\" chargeback=\"\" rebuttal=\"\" letters=\"\"\/>\n\t\t\t<\/div><\/div><\/div><div class=\"c-shortcode-ebook__content\"><span class=\"c-shortcode-ebook__title\"><span>Writing Winning<\/span> Chargeback Rebuttal Letters<\/span><p class=\"c-shortcode-ebook__description\">Learn how to create a winning debit or credit card chargeback rebuttal letter. Download our rebuttal letter template and writing checklist today.<\/p><span class=\"c-btn c-btn--primary c-shortcode-ebook__btn\">Get the FREE guide<\/span><\/div><\/div><div class=\"c-shortcode-ebook__close\" data-shortcode-ebook-close=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 20 20\" fill=\"currentColor\"><path fill-rule=\"evenodd\" d=\"M4.293 4.293a1 1 0 011.414 0L10 8.586l4.293-4.293a1 1 0 111.414 1.414L11.414 10l4.293 4.293a1 1 0 01-1.414 1.414L10 11.414l-4.293 4.293a1 1 0 01-1.414-1.414L8.586 10 4.293 5.707a1 1 0 010-1.414z\" clip-rule=\"evenodd\"><\/path><\/svg><\/div><\/a><div class=\"c-shortcode-ebook__overlay\"><\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Best Practices for Payment Authentication<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Without good payment authentication practices, you\u2019re leaving your business wide-open to fraud and chargebacks. At the same time, authentication methods must be both accurate and efficient, without causing friction at checkout.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some authentication steps you can take to optimize effectiveness while providing a seamless customer experience:<\/p>\n\n\n\n<h3 class=\"wp-block-heading joli-heading\">\n<span style=\"color:var(--color-primary);\">#1<\/span> \n<span style=\"color:var(--color-secondary-yellow);\"> &nbsp;|&nbsp; <\/span>\n Use More Than One Authentication Tool\n<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">No single tool can be 100% effective, but a mix of multiple tactics can increase your success. You may have to experiment to find the right mix.<\/p>\n\n\n\n<h3 class=\"wp-block-heading joli-heading\">\n<span style=\"color:var(--color-primary);\">#2<\/span> \n<span style=\"color:var(--color-secondary-yellow);\"> &nbsp;|&nbsp; <\/span>\n Use the Most Comprehensive Data Available\n<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The more data you can cross-reference, the more accurate you can be. Tap into the best data you can find, and use machine learning to constantly fine-tune results.<\/p>\n\n\n\n<h3 class=\"wp-block-heading joli-heading\">\n<span style=\"color:var(--color-primary);\">#3<\/span> \n<span style=\"color:var(--color-secondary-yellow);\"> &nbsp;|&nbsp; <\/span>\n Keep Up-to-Date Records\n<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your authentication tools are only as good as the information you have on file. Perform regular account checks to&nbsp;<a href=\"https:\/\/chargebacks911.com\/card-on-file-transactions\/\">update expired card-on-file details<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading joli-heading\">\n<span style=\"color:var(--color-primary);\">#4<\/span> \n<span style=\"color:var(--color-secondary-yellow);\"> &nbsp;|&nbsp; <\/span>\n Train Your Staff to Recognize Potential Fraud\n<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Your employees can help identify fraud if they know what to look for. Training your staff to recognize some common warning signs associated with fraud.<\/p>\n\n\n\n<h3 class=\"wp-block-heading joli-heading\">\n<span style=\"color:var(--color-primary);\">#5<\/span> \n<span style=\"color:var(--color-secondary-yellow);\"> &nbsp;|&nbsp; <\/span>\n Monitor Transactions\n<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Keep an eye out for any suspicious activity or patterns. If something seems off, don't be afraid to reach out to the customer to try and validate the buyer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading joli-heading\">\n<span style=\"color:var(--color-primary);\">#6<\/span> \n<span style=\"color:var(--color-secondary-yellow);\"> &nbsp;|&nbsp; <\/span>\n Employ a Larger Strategy\n<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Payment authentication is a powerful fraud prevention tool, but it\u2019s only one tactic and affects only one fraud risk. It won\u2019t help against other issues, such as&nbsp;<a href=\"https:\/\/chargebacks911.com\/friendly-fraud\/\">friendly fraud<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Need Help?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Like&nbsp;<a href=\"https:\/\/chargebacks911.com\/fraud-prevention\/\">every other aspect of fraud prevention<\/a>, payment authentication can be confusing. A good payment authentication solution can help, but it will still tie up resources. Instead of spending all your time and energy trying to untangle specific needs and regulations, most merchants find they can get a better ROI by working with professionals.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Looking for&nbsp;<a href=\"https:\/\/chargebacks911.com\/chargeback-companies-2\/\">the most effective ways to prevent fraud and chargebacks<\/a>&nbsp;while getting back to the business of running your company? Contact Chargebacks911\u00ae today to speak to one of our experts.<\/p>\n\n\n\n<div class=\"c-shortcode-faq\" data-shortcode-faq=\"true\" class=\"wp-block-cb911-block-library-faq\"><div class=\"c-shortcode-faq__inner\"><h2 class=\"c-shortcode-faq__heading joli-heading\" id=\"faqs\">FAQs<\/h2><div class=\"c-shortcode-faq__items\">\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\" class=\"wp-block-cb911-block-library-faq-item\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What is payment authentication?<\/h3><p class=\"c-shortcode-faq__answer\">Payment authentication is the process of verifying the identity of the party on the other end of a transaction. This is done by merchants, who need to verify that their customers are authorized to use a specific payment card.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\" class=\"wp-block-cb911-block-library-faq-item\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What is the difference between payment authorization and authentication?<\/h3><p class=\"c-shortcode-faq__answer\">Payment authorization is the process where a merchant obtains approval from a payment processor to complete a transaction, confirming that the customer's account has sufficient funds. In contrast, payment authentication focuses on verifying the identity of the user making the transaction, ensuring that the person is indeed the legitimate cardholder.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\" class=\"wp-block-cb911-block-library-faq-item\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">What are the three types of authentication?<\/h3><p class=\"c-shortcode-faq__answer\">The three types of authentication are something you know (like a password or PIN), something you have (such as a smart card or mobile device), and something you are (biometric data such as fingerprints or facial recognition). Each type provides a distinct layer of security, making it more difficult for unauthorized users to gain access to sensitive information or systems.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\" class=\"wp-block-cb911-block-library-faq-item\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">How do banks authenticate transactions?<\/h3><p class=\"c-shortcode-faq__answer\">Banks authenticate transactions through a combination of methods, including multi-factor authentication, where users must provide something they know (like a password), something they have (like a one-time code sent to their phone), or something they are (like biometric data). Additionally, banks <a href=\"https:\/\/chargebacks911.com\/transaction-monitoring-software\/\" title=\"Transaction Monitoring Software\" data-wpil-monitor-id=\"356\">monitor transaction<\/a> patterns for unusual activity, flagging or verifying any transactions that deviate from a customer's typical behavior.<\/p><\/div><\/div>\n\n\n<div class=\"c-shortcode-faq__item\" data-shortcode-faq-item=\"true\" class=\"wp-block-cb911-block-library-faq-item\"><div class=\"c-shortcode-faq__item-inner\"><div class=\"c-shortcode-faq__icons\"><div class=\"c-shortcode-faq__icons-inner\"><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--minus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><div class=\"c-shortcode-faq__icon c-shortcode-faq__icon--plus\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M20 12H4\"><\/path><\/svg><\/div><\/div><\/div><h3 class=\"c-shortcode-faq__question\">Which comes first: authentication or authorization?<\/h3><p class=\"c-shortcode-faq__answer\">Authentication comes first, as it verifies the identity of the user attempting to access a system or complete a transaction. Once authentication is successfully established, authorization follows to determine the user's permissions and whether they have the right to proceed with the requested action.<\/p><\/div><\/div>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<h2 class=\"wp-block-heading\">How Does Payment Authentication Work? What Methods Can You Use To Validate Buyers?<\/h2>\n<p>Let\u2019s say you\u2019re trying to process a transaction at a brick-and-mortar. There are some pretty basic ways to know if the customer on the other side of your checkout counter is actually the person they claim to be.<\/p>\n<div><a class=\"btn-filled btn\" href=\"https:\/\/chargebacks911.com\/payment-authentication\/\" title=\"Payment Authentication\">Read More<\/a><\/div>\n","protected":false},"author":9192198,"featured_media":71677,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_crdt_document":"","inline_featured_image":false,"footnotes":""},"categories":[55],"tags":[42,79,92],"class_list":["post-41485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fraud-prevention","tag-prevention","tag-technology","tag-tools"],"acf":[],"_links":{"self":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts\/41485","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/users\/9192198"}],"replies":[{"embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/comments?post=41485"}],"version-history":[{"count":10,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts\/41485\/revisions"}],"predecessor-version":[{"id":96659,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/posts\/41485\/revisions\/96659"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/media\/71677"}],"wp:attachment":[{"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/media?parent=41485"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/categories?post=41485"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chargebacks911.com\/wp-json\/wp\/v2\/tags?post=41485"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}