PhoneFactor announced support for ISO 8583, the standard protocol that financial institutions use to process credit and debit card transactions. Both MasterCard and Visa base their authorization communications on the ISO 8583 standard as do most Automated Teller Machines.
By adding PhoneFactor to the transaction path using the ISO 8583 protocol, card issuers can authenticate transactions with a phone call or text message.
When a protected transaction is initiated, PhoneFactor places an automated phone call or sends a text message to the cardholder asking them to verify the transaction details. The user simply answers the call and presses # (or a PIN) or replies to the text message to approve the transaction.
PhoneFactor uses the cardholder’s existing phone – a device the cardholder already has and carries with him. So, enabling the service for large numbers of geographically diverse customers can be easy and cost-effective. It works regardless of which merchant is processing the transaction or from which channel the transaction is initiated.