This disclosure describes techniques for risk-based authentication and/or authorization of payments for transactions. Per techniques of this disclosure, risk signals associated with a transaction initiated from a user device are determined based on user-permitted factors. The risk signals are transmitted to a payment instrument issuer prior to the initiation of a payment authorization request. The payment instrument issuer can determine the risk associated with a transaction based on the risk signals. If the determined risk exceeds a threshold, the payment instrument issuer may request additional user verification, e.g., via a challenge-response mechanism. Payment credentials are provided based on the determined risk.
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Li, Stan; Cheriyakath, Aneesh Ali Nainamvalappil; and Malhotra, Archana, "Risk-based Payment Authorization for Online Transactions", Technical Disclosure Commons, (March 24, 2023)