When a customer purchases items online using a credit or debit card via phone, tablet, laptop or other device, the 3DS2 technology sends the transaction details, payment method and device information to the card issuer.
The card issuer then reviews the data and determines the type of authentication to use. Transactions will be categorised by the issuer as high risk or low risk.
Low risk transactions will flow seamlessly through the system without any further interaction with the cardholder. This is referred to as frictionless flow.
For high risk transactions, the card issuer may ask the cardholder to verify themselves. The type of verification used is determined by the issuer. This is referred to as challenge flow.
Once a payment has been successfully authenticated, authorisation for the payment will be initiated.