Dynamic Friction and Challenge Decisions
How WatchTower can pause a suspicious transaction, request a step-up check, and return the verified outcome to the payment flow.
Pause safely
Hold suspicious but recoverable activity instead of forcing an immediate allow or block.
Verify the customer
Request the configured identity, liveness, document, or authentication step.
Resolve with evidence
Continue automatically or require an analyst to record the final decision.
What dynamic friction does
Dynamic Friction gives supported inline integrations an option between allowing a transaction immediately and blocking it outright. When the available signals point to recoverable risk, WatchTower can return a CHALLENGE decision and ask the customer to complete a configured step-up check.
The source system remains responsible for holding the transaction while the challenge is open. WatchTower coordinates the challenge state, evidence, expiry, resolution, and callback history.
A step-up check may include
- identity verification
- liveness or biometric verification
- one-time password verification
- additional document collection
- maker-checker or another customer-defined control
When to use a challenge
Use CHALLENGE for activity that is suspicious enough to pause, but not conclusive enough to block. It is most useful when the customer can provide evidence that meaningfully reduces the uncertainty.
Typical examples
- a high-value transfer from a newly seen device
- a beneficiary change followed by unusual payment activity
- cross-border activity that needs stronger customer verification
- a transaction that differs from the customer baseline but has no confirmed prohibited-party match
A direct sanctions match or another non-recoverable policy breach should follow the configured block or review policy. Passing a step-up check does not erase the original risk evidence.
Resolution and analyst approval
A successful step-up check does not always have to release the transaction immediately. Each organization can use the resolution policy that fits its operating model.
- Automatic continuation can return the approved outcome after a successful check.
- Analyst approval can keep the transaction pending until a reviewer inspects the verification evidence and records the final decision.
- A failed, expired, or abandoned challenge can move to review or block according to the configured policy.
Integration responsibilities
Your integration should
- recognize CHALLENGE as a normal decision
- hold the transaction safely
- present or deliver the step-up experience
- process signed resolution callbacks idempotently
- release, cancel, or retain the hold only after the configured final outcome
Dynamic Friction requires an inline integration that can hold and later continue or cancel the transaction. Confirm the source-system contract during implementation.