In September 2019, the Payment Services Directive 2 (PSD2) was implemented across Europe with the aim of improving the security of electronic payments. One of the main measures introduced by PSD2 is the Strong Client Authentication (SCA), which applies to all online transactions with credit and debit cards.
The Strong Client Authentication is a security measure designed to protect consumers from online fraud. Strong customer authentication relies on the use of at least two of the following security elements: something the user knows, something the user owns, and something the user is, to verify the user's identity before authorizing a transaction. .
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How does the SCA affect merchants?
The Strong Client Authentication It affects merchants who accept credit and debit card payments online. To meet the ACS, merchants must perform stronger customer authentication before processing a transaction. If the requirements of the ACS, banks can decline the transaction or hold the merchant liable for any fraud that occurs.
How does the SCA affect consumers?
Consumers making online purchases with credit and debit cards may notice a slight delay in the payment process. The Strong Client Authentication will require consumers to provide additional information to verify their identity before authorizing the transaction. This may include a code sent by SMS or a fingerprint on a mobile device.
