TABLE OF CONTENTS
- What is frictionless flow?
- How does it work?
- When is a frictionless flow a good idea?
- When is a frictionless flow not a good idea?
- What is a risk-based approach?
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 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 .
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?
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.