Verification refers to the process of validating the information provided by a cardholder during a transaction. This can include verifying the cardholder’s identity, checking the availability of funds, validating the card details, and confirming the card has not been reported lost or stolen.
Verification is a critical step in securing payment transactions and reducing the risk of fraud. This involves a series of steps where the payment processor checks the transaction details with the issuing bank, and the bank confirms that the transaction is legitimate and the account has sufficient funds.
The purpose of verification is not only to confirm the funds’ availability but also to ensure that the transaction is authorized by the cardholder and not fraudulent.
With the increasing number of online transactions, the importance of thorough verification has grown, as it is a crucial step in preventing unauthorized transactions and maintaining the security and integrity of the payment system.
The verification process usually occurs in real-time during the transaction and is often imperceptible to the cardholder, but it is a critical component in maintaining the trust and security of the payment system.