Hosted Authentication Service for Payment Integration
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Solution Overview
Problem
Merchants face challenges in integrating new security protocols for electronic transactions, such as 3DS2, which require additional consumer data and can lead to costly re-integrations, especially for smaller merchants who lack IT support.
Innovation Solution
A hosted authentication service that allows merchants to continue hosting their own payment forms without technical re-integration, by performing necessary tasks such as collecting additional consumer data and processing authentication data according to new security protocols.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If merchants implement new security protocols (3DS2) directly, then authentication security is improved, but integration complexity and cost increase
Solution Approach 1:
The patent introduces a hosted authentication service as an intermediary between the merchant's payment form and the authentication protocol. This service handles the complex 3DS2 protocol implementation, data collection, and authentication processing, allowing merchants to maintain their existing payment forms while achieving compliant authentication without direct integration complexity.
2Reliability
If merchants modify their technical integration for 3DS2, then compliance with new security requirements is improved, but development cost and time increase
Solution Approach 1:
The hosted authentication service performs the complex authentication tasks automatically without requiring merchants to modify their technical integrations. The service self-manages protocol handling, data collection from additional sources, and authentication processing, enabling compliance through a no-code or low-code approach that eliminates development costs for merchants.
3Measurement precision
If additional consumer data is collected for 3DS2, then authentication accuracy is improved, but data collection complexity increases
Solution Approach 1:
The hosted authentication service acts as an intermediary that automatically collects additional consumer transaction data from various sources including device data, transaction history, and behavioral patterns. This intermediary handles the complex data aggregation and processing, providing accurate authentication insights without increasing the complexity at the merchant's end.
Data Source
AI summary
Systems and methods for authenticating an electronic transaction using a hosted authentication service. The systems and methods determine whether an authentication is required based on a first electronic message received from a first data system. Upon determining the authentication is required, the systems and methods transmit a dummy authentication request and a hosted authentication service uniform resource locator to the first data system. The systems and methods further determine or receive an indication whether a user authentication challenge is required based on a transaction risk analysis by a second data system. Upon determining the user authentication challenge is required, the systems and methods provide, at a user interface, an electronic form including a challenge request. The systems and methods transmit, to the first data system, another electronic form including a dummy authentication response generated based on a challenge result.