Strong Customer Authentication (SCA) is an increasingly important topic for those conducting businesses online. The deadline for its implementation has now been extended, as a response to growing concerns. Learn more about the deadline extension in today’s blog.
The growing prevalence of e-commerce over the past decade recently led to the introduction of Strong Customer Authentication, a new and more thorough process of authenticating online transactions. Under the terms of the legislation, merchants operating in Europe must authenticate payments with the use of either a password/PIN, a mobile phone, a fingerprint or facial recognition software.
The mandatory requirement had initially been proposed to start on 14th September 2019, but widespread criticism has led to an extension of the deadline, under certain circumstances. This delay, which was approved by the European Banking Authority (EBA), resulted from strong industry opposition, with many businesses disputing the timeframe of the legislation and cost of its implementation.
With the deadline fast approaching, many merchants remain unprepared for the commencement of SCA. Concerns were raised at a recent meeting of the European Banking Authority, where a delay to the enforcement of the regulation was decided upon. The meeting, which took place on 21st June 2019, saw some payment service providers in the UK given additional time to prepare for SCA.
In a statement, the Financial Conduct Authority said, “The FCA recognises the challenges in meeting this deadline and has been working with the industry to develop a plan to migrate the industry to implement SCA for card payments in e-commerce as soon as possible after this.”
As a result of the decision to delay SCA, the FCA plans to coordinate with stakeholders from the entire industry, in order to prepare a reasonable timetable for the introduction of the new security measures. Working cooperatively with the industry and relevant authorities, the FCA plans to ensure a seamless transition, which will benefit businesses and customers alike.
The FCA explained, “Once the group has finalised the plan and we have agreed it, we expect all participants to meet the agreed milestones, targets and final delivery date. We believe this approach is proportionate. We will not take enforcement action against firms if they do not meet the relevant requirements for SCA from 14 September 2019 in areas covered by the agreed migration plan, where there is evidence that they have taken the necessary steps to comply with the plan.”
Once introduced, SCA will be a mandatory requirement for all companies operating within Europe. If you’re unsure whether or not the changes apply to you, or you’d like to know more about what SCA means for merchants doing business in Europe, don’t hesitate to get in touch by emailing [email protected] or calling 0800 054 6567.