The Impact of SCA Enforcement on Merchants

The Impact of SCA Enforcement on Merchants

Survey Results: European and UK Businesses Seek To Balance Secure Transactions and a Frictionless Customer Experience

Executive Report

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Between the COVID-19 pandemic and adapting to enforcement of the European Commission’s new Strong Customer Authentication (SCA) regulations, 2021 will be a challenging year for many merchants. Those merchants who do not currently have the 3-D Secure (3DS) authentication protocol in place will need to apply both resources and finances to ensure compliance.

The new SCA rules have introduced more stringent fraud protection regulations around electronic payments. 

While 3DS provides greater security for merchants, it also brings the potential to add friction to the customer checkout experience. In a post-SCA landscape, merchants will need to balance the requirements for compliance with the desire to provide an optimal customer experience. To achieve this balance, merchants must have a good understanding of the regulation and implement a strategy to optimise both the geographical scope of the regulation and the exemption criteria. 

Download the Survey Results to learn more about SCA compliance.

The relatively complex nature of SCA has produced challenges for merchants. According to this survey report commissioned by Accertify and conducted by Arizent Research/PaymentsSource, nearly 60% of merchants worry about the cost and resources required for SCA compliance, and 38% find the SCA rules unclear or confusing.

Interested in learning more about how to be SCA compliant?

Ultimately merchants that partner with a payment service provider, acquirer or vendor to manage SCA are more likely to see themselves as effective at reducing both customer friction and fraud risk.

Accertify’s SCA Optimisation is a real-time PSD2 decision engine that facilitates strong customer authentication (SCA) so you can help ensure regulatory compliance while taking advantage of SCA exemptions to deliver a positive check-out experience.