Will your business be able to accept electronic payments now that PSD2 SCA is in effect?
PSD2’s Strong Customer Authentication requirement is now in effect. The requirement was created to protect consumers during digital transactions and reduce fraud.
Should I care?
If you sell in (or are acquired in) the EEA, and you sell to consumers whose cards are issued in the EEA, you should definitely care! You'll need to challenge all your customers unless you can manage the complex exemption options. But first, you'll have to know if you are even eligible for exemptions. If you aren't prepared for SCA, you need to start right away.
With PSD2 now in effect in Europe, online merchants and issuers are preparing for the next fast-approaching deadline: Strong Customer Authentication (SCA).
Our beginners guide will walk you through what you need to know, so you understand how it affects you and your business. From grasping the basics to managing exemptions to implementing a solution. Download now!
What is PSD2?
PSD2 is the 2nd Payment Services Directive established by the European Banking Authority (EBA). This directive is designed to drive payment innovation and data security by reducing competitive barriers, mandating new security processes and encouraging standardized technology.
Benefits of PSD2 are consumer-focused, meaning issuers and merchants need to be prepared for new challenges.
There are many layers to PSD2, including the SCA requirement.
What is SCA?
In most European countries, as of 14 September 2019, a Strong Customer Authentication (SCA) solution is now required for all digital transactions, as part of PSD2. All card issuers and merchants/acquirers must support an SCA solution, which requires two of the three types of identification listed below.