The final countdown has begun to the 14th of March 2022, the FCA’s deadline for SCA compliance for e-commerce transactions. This was delayed from last year, and will be the final deadline, with no further extensions.
This is a crucial date for anyone regulated by the Financial Conduct Authority (FCA), as it impacts incoming payments and the customer journey.
What is SCA Compliance?
Strong Customer Authentication (SCA) is part of the PSD2 regulation taking place across Europe. It is an initiative from Card issuers, intended to enhance the security of payments and limit fraud during the card authentication process. It has already taken effect across the European Economic Area (EEA).
What does this mean for you?
If you’re regulated by the Financial Conduct Authority (FCA), they have been advising regulated organisations to take “all reasonable steps to support consumer and merchant readiness. Any firm that fails to comply with the requirements for SCA after this date may be subject to supervisory or enforcement action, where appropriate.”
How Do I Comply with SCA?
The easiest way for merchants and organisations to comply with SCA is to use 3D Secure (3DS1 or 3DS2).
You may have already noticed this during your own online shopping, where websites have started to ask for a new additional step to prove your identity.
Certain transactions will require customers to provide two types of information when making a payment.
- Something you have (E.g. A payment card, mobile phone or security code generator)
- Something you know (E.g. a Password or PIN)
- Something you are (E.g. Biometric or a fingerprint)
Key IVR have been helping countless organisations meet their SCA requirements to help combat card fraud, improve customer confidence and most importantly… protect your business revenue. We’re a PCI-DSS Level 1 compliant payment services provider, with years of experience in staying ahead of industry regulations.