The process ensures that the payment method provided by a customer is legitimate and matches the registered account details. This validation typically involves comparing the entered information, such as name, address, and card number, with the data held by the issuing bank or financial institution. For instance, when a new credit card is added to an Amazon account or after a failed payment attempt, this security measure is often triggered.
This validation is crucial for fraud prevention and the protection of both the customer and the e-commerce platform. It mitigates the risk of unauthorized transactions, identity theft, and chargebacks, thereby maintaining a secure and trustworthy online shopping environment. The implementation of these checks has evolved over time, adapting to increasingly sophisticated methods of fraudulent activity and regulatory requirements concerning data security.
