The European Banking Authority regulation which came into force at the end of 2020 – called Strong Customer Authentication (SCA) – requires merchants to implement 2-Factor Authentication (2FA) in order to authenticate in-scope payments. An online transaction that cannot be authenticated, may be declined by the issuer. But how prepared are merchants for the enforcement of SCA and what challenges do they face when implementing new solutions and processes?
Accertify commissioned a study conducted by Arizent Research/PaymentsSource with UK and continental European merchants on the topic of SCA merchant readiness which focused on the following key topics:
- What are merchants’ main concerns regarding the enforcement of Strong Customer Authentication (SCA)?
- Prioritization of a frictionless checkout experience versus the need for liability protection.
- Merchants’ familiarity and optimisation of the exemptions available within the SCA regulation.