On 14 September 2019, the so-called Regulatory Technical Standards defined by the European Banking Authority (EBA) will come into force. Strong Customer Authentication (SCA) will be mandatory for all electronic payments.
Regulatory Background of 3D Secure 2.0 and Reactions Within the Payment Industry
All European-based providers involved in e-commerce have to meet the regulatory technical standards (RTS) coming into force on September 14, 2019 as part of the Second EU Payment Service Directive (PSD 2). Above all, these standards require strong customer authentication (a.k.a. two-factor authentication) when paying on the internet.
3D Secure 2.0 Is Suitable for Daily Use
Customers no longer have to remember passwords and can easily confirm payments, e.g. using a mobile app. 3-D Secure 2.0 fully integrates customer authentication into the sales process. Liability for fraudulent transactions is transferred to the card issuer.
The Meaning of Strong Customer Authentication
For strong customer authentication, all payment transactions – with certain exceptions – must be secured “strongly.” This means that at least two of three of the following factors are required:
- knowledge
- ownership
- personal
ADITUS implements the 3D Secure 2.0 standard for you. We will be happy to advise you on any further questions.
