On 16 October 2019, the European Banking Authority announced that the new SCA requirements should be fully enforced by 31 December 2020. The majority of European regulators (except UK) have agreed to this new deadline. Meaning that starting 1st of January 2021 all online transactions need to comply with two factor authentication. Online card payments without double verification with SCA will almost always be rejected by card issuers from 2021 onwards (unless an individual payment qualifies for exemption).
With 3DS v1.0, an online store already meets all the legal requirements for SCA, but the customer experience is considered clunky at best, as it involves the customer to authenticate the transaction via e.g. a One Time Password. There is no single solution that appeals to all. For example, if asked to verify a payment using a passcode people had a range of preferences:
Although with the latest versions of the 3DS standard (3DS v2.x), web shops can benefit from a better customer experience with online credit card payments. It still requires the customer to enter their card details, including CVC before completing the online purchase via 3DS.
WIZZIT Tap2Pay solution achieves a smooth customer experience, as it leverages the customer’s device to read the card and confirm the transaction via Pin entry. Herewith eliminating the need to:
– enter and store card details
– rely on an additional channel to provide the second factor authentication.
Would you like to find out how we can help you improve your customer experience whilst complying with the SCA standards? Reach out to us: https://wizzitdigital.com/contact/