Payment authentication

(Known in English as "Payment Authentication").

Payment authentication is a security procedure that ensures that online payments are made by authorized persons. It uses various identification methods to confirm the authenticity of a transaction and prevent fraudulent activity.

Payment authentication

Online transactions are an essential component of modern trade and finance. They involve the electronic exchange of money or goods between parties over the internet. This can include buying products, paying for services, transferring funds between bank accounts or even trading cryptocurrencies.

Payrexx, a recognized payment provider, simplifies online transactions for merchants and customers alike. Payrexx enables companies to offer a variety of payment methods and integrate them seamlessly into their e-commerce platforms. Customers can make secure and convenient purchases without disclosing sensitive data.

Online transactions offer the advantage of convenience, as they can be carried out from anywhere and at any time. They reduce the need for cash and physical payment methods. However, security is of paramount importance as online transactions can be vulnerable to fraud.

Payment authentication examples

When placing an order online, the customer is sent a unique password which they must enter in order to complete the payment.

The buyer authorizes the transaction using their fingerprint recognition on their smartphone.

A company uses SMS verification codes to ensure that only legitimate customers make payments.

Payment authentication FAQ

  • Various technologies are used for payment authentication. These include biometric features such as fingerprint or facial recognition, tokenization, the use of one-time passwords (OTP), 3D Secure procedures and multi-factor authentication (MFA). These technologies offer multi-layered security by verifying the identity of the user and ensuring that transactions are carried out by authorized persons.

  • In the world of e-commerce, trust is crucial. Payment authentication plays a central role in strengthening this trust. Not only does it protect customers from fraud and identity theft, but it also lends credibility to e-commerce websites. By ensuring that only authorized users perform transactions, it minimizes the risk of unauthorized access and creates a secure environment for online shopping.

  • Yes, in some cases payment authentication can lead to slight delays in transactions. However, this is a necessary trade-off in the name of security. For certain payment types, such as one-time password confirmation or biometric verification, there may be additional steps that slightly increase transaction time. However, these short delays are a small investment for protection against potentially significant risks such as payment fraud and unauthorized use.

  • Payment authentication contributes to customer loyalty by providing a sense of security. When customers know that their payment details are protected, they feel more comfortable using an e-commerce website. This security leads to trust, which in turn increases the likelihood that customers will return and make regular purchases. A positive experience with secure payment processing helps to retain customers in the long term.