Online payments are changing – is your business future-proof?

Ready or not, new industry standards came into effect on 14th September 2019 – and the sooner you get on board, the more your business can benefit.

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, reducing fraud with new higher security standards for online payments. You may already be meeting these requirements, but if not you’ll need to add Strong Customer Authentication (SCA) to your checkout.

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 buying online:

SCA must be used for all remote electronic transactions unless an exemption applies. For example, low-value payments (equal/below €30, conditions apply), repetitive transactions (same amount) and transactions to trusted beneficiaries (white listing).

Fewer than 5% of merchants use technology that supports SCA, and over 75% don’t know what the SCA requirements are1. Because of this the Financial Conduct Authority are allowing a managed rollout from 14th September to give you time to implement SCA. You’ll need to make the change at some point – and the sooner you do, the more secure your business will be.

 

Why wait until the last minute? Get in touch with your acquirer today.

For more information on understanding the changes an opportunities of PSD2

How is Mastercard helping with these changes?

Mastercard® Identity Check™ is our solution to the demands of PSD2 and SCA. It uses the next generation of payment authentication protocols – EMV® 3-D Secure – to reduce fraud and basket abandonment, as well as provide a better customer experience.

Mastercard® Identity Check™ improves digital payment security, increasing approvals and reducing friction for your customers while protecting them and you from card-not-present fraud – 75% of all card fraud2. It gives you:

 

What benefits does Mastercard® Identity Check™ provide?

It makes you fully compliant with the latest financial regulations when it comes to taking payments from your customers. Your payment service provider should be keeping you informed about these, but if not we suggest contacting them.

It also helps you:

Mastercard® Identity Check™ will help you manage PSD2 requirements, giving you and your customers greater peace of mind.

In our toolkit you’ll find resources to help you handle PSD2 and SCA. It provides some background on the fraud landscape and how Mastercard® Identity Check™ protects your business. It also gives you a greater understanding of the terminology and requirements of PSD2, including FAQs and help pages.

1. UK FINANCE, STRONG CUSTOMER AUTHENTICATION (SCA: PROPOSED MANAGED ROLLOUT, 2 AUGUST 2019, 2. EUROMONITOR, FICO, 2016, 3. MASTERCARD TRANSACTION DATA, 2017, 4. DATA PASSWORDS BREACH INVESTIGATIONS REPORT, VERIZON, 2015, 5. IDENTITY CHECK PROGRAM AND EMV 3-D SECURE VERSION 2 (EMV 3DS) UPDATE, 2017