Online Cardholder not Present payments in the European Economic Area (EEA) are changing
Is your business prepared?
Ready or not, new industry standards will be in force this year – which require your business to enable two-factor authentication
New requirements introduced by the second Payment Services Directive (PSD2) mean your customers will be asked for more information when they buy from you online, in an attempt to reduce fraud with new higher security standards for online payments. You may already be meeting these requirements, but if not you’ll need to add a method for meeting Strong Customer Authentication (SCA) to your checkout.
Strong Customer Authentication (SCA) is an extra layer of security, also known as two-factor authentication
It means customers may be asked for two different pieces of information from the following categories when making purchases online:
SCA must be used for all remote electronic transactions unless an exemption applies. Exemptions include, low-value payments (equal to/below €30 with further conditions applying), reoccurring transactions (of the same amount) and transactions with trusted beneficiaries (white listing).
See the SCA authentication flows for further information.