Methods and systems for authenticating an identity of a payer in a financial transaction

A system for authenticating an identity of a cardholder in a financial transaction initiated by the cardholder with a merchant computer system via a first communication medium, said system comprising:

• a memory device configured to store contact information associated with the cardholder;
• a communication interface configured to receive a purchase authentication request message from a merchant computer system;
• a processor coupled to said memory device and said communication interface, said processor programmed to:
• generate a one-time password for the financial transaction;
• provide the one-time password to the cardholder via a second communication medium different from the first communication medium using the contact information associated with the cardholder;
• prompt the cardholder to enter the one-time password;
• receive an entered one-time password from the cardholder via the second communication medium:,
• determine that the entered one-time password is equal to the generated one-time password;
• and
• transmit a positive purchase authentication response message to the merchant computer system indicating a successful authentication of the identity of the cardholder via said communication interface.

A computer-readable storage medium that includes computer executable instructions for authenticating an identity of a cardholder in a financial transaction initiated by the cardholder with a merchant via a first communication medium, said computer executable instructions configured to instruct a computer to:

• receive a purchase authentication request message from the merchant, the purchase authentication request message associated with the cardholder and the financial transaction;
• generate a one-time password for the financial transaction, the one-time password including a sequence of random characters;
• transmit the one-time password to the cardholder via a second communication medium different from the first communication medium;
• prompt the cardholder to enter the one-time password;
• receive an entered one-time password from the cardholder via the second communication medium,
• determine that the entered one-time password is equal to the generated one-time password;
• and
• transmit a positive purchase authentication response message to the merchant indicating a successful authentication of the identity of the cardholder.