-

PSD2 and SCA – the new payment security regulation

What is PSD2 and why is it happening?

Studies have shown cybercrime is on the rise*:

  • 3X increase in money taken by ecommerce fraudsters since 2010
  • 59% of all card fraud in 2018 was through ecommerce
  • 43% of customers are concerned about the threat of online fraud to their business
  • 47% of online customers haven’t hit ‘buy’ because of security concerns

To help combat this, changes to the way you take payments and make payments online will be introduced. To be compliant, you’ll need to implement changes to your checkout journey so it’s important that you start preparing operationally and technically now.

What your business needs to do

Start preparing now to make sure your business is ready for the changes. Issuers in the UK are likely to trigger SCA for 3DS transactions from February 2020.

If you’re not ready, don’t panic. Continue to implement 3DS2 (3DS v2) as quickly as possible. Declines are expected to take effect from March 2021.

Additional measures to take:

  • • continue to invest in fraud screening tools
  • • review your customer payment journey and operating model – and make sure you know how this will change when SCA is implemented

Key dates to keep your eye on

Feb 2020: UK issuers are likely to apply SCA on transactions sent via 3DS

Sept 2020: Merchants are expected to be operationally ready by September, including testing required

14 March 2021: Issuers will be required to actively decline non-3DS transactions where exemptions don’t apply

Taking payments?

Get all the info you need from our PSD2 hub, packed with whitepapers (PDF 2.1MB) and FAQs.

Making payments?

Know the ins and outs of the new regulation with our FAQs and more.
 

Personal account?

When you’re making payments, know how to confirm it’s you online.
 

*UK Finance publication ‘Fraud the Facts 2019’ and Barclaycard Payment Security Research, YouGov 2019.

For merchants trading in Europe, the deadline will be 31 December 2020. The March 2021 deadline applies to merchants who trade in the UK only.