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Modulr glossary

Webhook Notifications

Webhook Notifications are automated messages sent from one application to another when a specific event occurs. In the payments industry, webhooks are used to notify merchants of payment status updates, such as successful payments or failed transactions. A Webhook (also called a web callback or HTTP push API) is a way for an application to provide other applications with real-time information. A webhook delivers data to other applications as it happens, meaning you get data immediately (unlike calling APIs where you would need to poll for data periodically).

Applications

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

E-commerce:

Reduces fraud in online card payments by verifying the cardholder's identity

Advantages

  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
  • Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment

Challenges

  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment
  • User Experience: Additional authentication steps can cause friction and increase checkout abandonment

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