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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 and consider Barclaycard Transact for your business. Declines are expected to take effect from September 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

14 March 2020Δ: UK Issuers are required to activate 3DSv2.1. Contactless exemption limits began to be enforced

Jan 2021: EEA (excl. UK) to begin actively decline non-3DS transactions where exemptions don’t apply

14 September 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.
**Offer available for customers with card turnover of up to £6.5 million per year. After this time charges will apply, please refer to your terms and conditions. If you have a legacy Smartpay subscription, you’ll be transferred to our latest version.
ΔPotential changes as impacted by COVID-19.
For merchants trading in Europe, the deadline will be 31 December 2020. The September 2021 deadline applies to merchants who trade in the UK only.