Strong Customer Authentication: SCA and Store owners

Strong Customer Authentication: SCA and Store owners

Attention Store Owners

Update your payment gateways before September 14, 2019

From September 14, 2019 new rules to cut card fraud are fast approaching. But what does it mean for online shopping?

The system is designed to protect consumers, retailers and card issuers from fraud, but genuine transactions were inevitable collateral damage. Not every retailer used the additional layer of security but new regulations coming in the next few months will require most online payments to be subject to stronger authentication.

Part of the Revised Payment Services Directive (PSD2) published in 2018, Strong Customer Authentication (SCA) is intended to make payments more secure, requiring online sellers to implement more stringent methods of ensuring the payments they are taking are genuine. The rules, which come into effect on September 14th, mean customers will have to approve online payments through a second level of authorisation where the cardholder’s bank and the business accepting the transaction are located in the European Economic Area.

Some online retailers use 3DSecure such as Verified by Visa and Mastercard Identity Check. But many more businesses will be required to use SCA for online payments. That requires a degree of preparation from the retailer, payment processors and banks. The updated version of 3DSecure, which is expected to be adopted by European banks before the SCA D-Day in September, promises to be less frustrating for consumers to use, which is good news for anyone who has struggled with the systems in the past. Not only does it ditch the password-only option, allowing customers to use biometrics and tokens to approve the payments, it is also designed to be mobile friendly.

Retailers will have to ensure their payments systems are upgraded prior to the deadline for SCA, integrating 3DSecure to their checkout process. How simple that is will depend on each business’s set up. Much of the changes brought about under SCA, including navigating the exemptions, can be handled by payment processors such as Stripe, PayPal or WorldPay.

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Mantrasoft India administrator