What is ACS in banking?

However, in cases where the risk is high, the ACS challenges the transaction. This process involves additional verification steps, such as two-factor authentication or biometric identification, to ensure that the transaction is legitimate and not a fraudulent attempt.

The ACS, or Access Control Server, plays a pivotal role in safeguarding the integrity of digital banking transactions. It is an integral part of the issuing bank's authentication solutions, designed to enhance security measures and mitigate the risk of fraud.

The primary function of the ACS is to authenticate the identity of cardholders. By verifying the authenticity of users, the system ensures that only authorized individuals can access their accounts and perform transactions.

The ACS employs sophisticated algorithms to assess the risk associated with each transaction. If the risk is deemed low, the server facilitates a seamless and frictionless flow, allowing users to complete their transactions with ease.

The need for an access control server in online banking stems from the increasing sophistication of cyber threats. With hackers constantly devising new ways to infiltrate systems and steal sensitive information, the ACS provides a robust defense mechanism against such attacks.