The Transaction Validation Process works by sending a message requesting confirmation of the transaction via a pre-defined communication path. This message typically is sent via SMS/Text (cell phone) or email. As an example, the message will include information that identifies the transaction, such as the Merchant’s name, the amount of the transaction, and even information about the method of payment. The person making the transaction must respond to the message, thereby confirming the transaction. This confirmation could involve typing in an authorization code from the message onto the Order Screen or simply replying to the Text or email.
Based upon the confirmation or lack of it, the entity requesting the confirmation either approves the transaction to go forward and process or, if there is a lack of validation, the transaction can be voided or marked for further scrutiny and processing. Since only the owner of the cell phone number or the email will have access to it, the Merchant has the assurance that the legitimate owner of the account is the party placing the order; data breaches of the kind that are all-too-common today will represent no risk to the account owner, as simply knowing the cell number or email address will not allow a thief access to respond to the message requesting confirmation.
As for the validating message itself, it can take many forms; the most popular are SMS/Text and email. The format of the message can be simple or complex and configured as required and desired. The timing of the message is configurable, as to when it is sent and when the reply is expected to be received back. Multiple messages can be sent, ensuring the integrity of the process.