Payment authentication
Payment authentication refers to verifying the identity of the payer during a transaction — e.g. via PIN, fingerprint, SMS code or banking app.
Payment authentication
Payment authentication is the process in which the identity of the payer is verified before a transaction is approved. Depending on the channel and risk level, different authentication methods are used.
At the POS (Point of Sale), authentication typically takes place via PIN entry or biometrically (fingerprint, Face ID with mobile wallets). For contactless payments under CHF 80, the PIN can be waived in Switzerland.
In e-commerce, authentication is implemented through 3D Secure (Visa Secure, Mastercard Identity Check): the cardholder confirms the payment via banking app, SMS code, or biometrically. Strong Customer Authentication (SCA) according to PSD2 requires at least two factors from the categories of knowledge, possession, and inherence.
Payment authentication examples
A customer pays in-store by card and enters their PIN — this is a single-factor authentication (knowledge).
A customer pays online with Visa. 3D Secure requires confirmation via banking app (possession) — a two-factor authentication.
Apple Pay uses Face ID (inherence) plus the registered device (possession) as two factors for each payment.
Payment authentication FAQ
What is payment authentication?
Payment authentication is the verification of the payer's identity — via PIN, fingerprint, SMS code or banking app. It ensures that only the authorised cardholder authorises the transaction.
Which authentication methods are available for payments?
The three categories are: knowledge (PIN, password), possession (smartphone, hardware token), and inherence (fingerprint, facial recognition). Strong Customer Authentication (SCA) requires at least two of these.
When do you have to authenticate yourself for a payment?
For online payments almost always (3D Secure). At the POS for amounts over CHF 80 or after several consecutive contactless payments. For mobile wallets with every payment (biometric).
What are the three authentication factors?
Knowledge: something you know (PIN, password). Possession: something you have (smartphone, card). Inherence: something you are (fingerprint, face). SCA requires at least two of these.
