New Strong Customer Authentication (SCA) regulations will add an extra layer of security at online checkout making it safer to shop online. This was proposed in 2019 and became law in the UK from September 2021.

As fraud levels in digital payments have risen in Europe, new regulations have followed. Strong Customer Authentication (SCA) has become a key piece of the EU’s Revised Payment Services Directive (PSD2) required by merchants.

PSD2 introduced the concept of Strong Customer Authentication (SCA). The idea is simple: 2 out of 3 elements need to be checked during authentication.

As a customer, this means asked to identify yourself by another means as well as the payment card details e.g. through a passcode sent to your smart phone.

This may become an annoying delay at times but it is to protect your accounts from criminals.

The goals of PSD2

• Make the European payments market more integrated and efficient
• Improve the level playing field for payment service providers (including new players)
• Make payments safer and more secure
• Protect consumers from fraud

Strong customer authentication demands multi-factor authentication on all payer-initiated payments including at least two of the below methods.

• Something you know g. pin or password
• Something you have g. phone or device
• Something you are e.g. facial scan or fingerprint

If you have any experiences with this new system do let me know, by email.