UK extends deadline for enforcement of PSD2 SCA
As of April 30, 2020, the UK Financial Conduct Authority (FCA) released a statement indicating they are delaying enforcement of PSD2 SCA requirements from March 14, 2021 by six months to September 14, 2021 due to the exceptional circumstances of the COVID-19 crisis. The ultimate goal is to minimize potential disruption to both consumers and merchants.
PSD2’s SCA requirements were originally scheduled to be enforced in the UK on March 14, 2021. PSD2, the European Banking Authority’s (EBA) 2nd Payment Service Directive, is designed to drive payment innovation and data security. SCA (Strong Customer Authentication) is a requirement of PSD2.
Important things to note:
It is strongly recommended that all parties still proceed forward with plans to integrate, and perform end-to-end testing, in preparation for the new deadline date.
Any institution (merchant, acquirer, issuer, processor) that fails to comply by the new date will then be subject to full compliance action, which may also result in penalties.
The FCA is strongly encouraging other competent authorities to also consider a delay due to COVID-19.
Statement Released by FCA:
As always, if you have any questions, let’s talk. We are here to help, especially during these unprecedented times. Contact us today.