Bahaa Abdul Hadi is an Identity Management expert and regularly shares his experiences with his audience through his blogs. This time he discusses about Frictionless Authentication.

1. What is Frictionless Authentication?
Bahaa Abdul Hadi is an Identity Management expert and regularly shares his
experiences with his audience through his blogs. This time he discusses about
Frictionless Authentication.
For a seamless transaction, free from additional authentication steps, frictionless
authentication is the way to go. Using the 3DS (3D secure) protocol, frictionless
authentication allows transactions with low fraudulent risk to occur seamlessly.
Now transactions from card and digital devices can happen within seconds. Due to
reduced friction, the chances of cart abandonment are extremely low.
Frictionless Authentication Process
According to Bahaa Abdul Hadi, frictionless authentication process happens as follows:
● The merchant puts out a request for authentication along with device and
transaction data.
● The protocol for 3D secure assesses the risk of transaction by the issuer. Based
on this, the 3D secure gauges the requirement for a challenge.
● If the transaction is reported as “high risk”, the issuer has the right to demand
more steps for authentication.
● Frictionless authentication occurs if the transaction is deemed “low risk”.
● After the transaction authentication, the merchant receives an approval. From
there on, the transaction can be carried out normally.
Risk-based Assessments
Each transaction is scrutinized properly to look for potential risks. To make this
assessment, the 3D secure protocol checks many factors, such as –
● The status of the customer – whether they are new or existing.
● The total value or amount of the undergoing transaction.
● Information of the device on which the transaction is occurring.

2. ● The transaction history of the merchant or customer.
● The behavior history of the merchant or customer.
Securing Frictionless Authentication
Suppose the transaction is labelled as “high risk”. In that case, a customer will have to
go through additional authentication steps. This can be done in two ways: two-factor
authentication or biometrics. Sometimes, both ways can be implemented.
When the customer clears both the steps, the transaction is considered secure. This is
because a hacker or fraudster would not be able to access the biometric data or
one-time password of the cardholder.
Frictionless Authentication Benefits
Apart from increasing the speed of transaction and offering protection, frictionless
authentication has many other advantages. Some of them are:
● Less risk of fraud – a fraud might get hold of the cardholder’s details. However,
they will not have information regarding the biometrics and OTP (one-time
password).
● Easy compliance – With the help of 3D secure, you can easily comply with
Strong Consumer Authentication (SCA) and PSD2 regulations.
● Protection during chargeback – the liability of a fraud transaction falls upon the
cardholder and not the merchant. This offers protection to merchants from losing
money.
● More authorization rates – the use of 3D secure can increasing authorization
rates by 10 per cent.
Thank you for your interest in Bahaa Abdul Hadi blogs.
Bahaa Abdul Hadi