TABLE OF CONTENTS

What is frictionless flow?


    Frictionless flow allows the card issuer to approve a payment without the need to interact with the cardholder. The cardholder is not required to go thru  3-D Secure authorisation here. Consequently, a higher conversation rate achieved. 


How does it work? 


    When a cardholder performs a transaction, information about the purchase, including device data, item purchased, and value is submitted to the bank issuer to define the cardholder's authenticity. Bank will apply a risk-based approach to choose how to authorise the transaction, frictionless or with  3DS . 


When is a frictionless flow a good idea?


    When a customer at your checkout is known, using the same card as before, from the same IP address, and with the same device and had successful 3D authorisation before - the fraud risk is low here. In such instances, card issuers can approve the transaction without requiring 3DS.  


When is a frictionless flow not a good idea?


    And the contrary - if we detect that a customer uses a new card in a system for an abnormally expensive purchase - it is best to force a transaction to  3DS.  


What is a risk-based approach?


    A risk-based approach is an evaluation of existing data about the customer at checkout:

  • The value of the transaction;
  • Transactional history;
  • Device information;
  • IP information;
  • New or existing customer;
  • Behavioural history.


    The risk-based approach allows to define transactions risk score and to choose appropriate authentication flow.