The new strong customer authentication (SCA) rules snapped into force this weekend. However, Barclaycard has so far not seen any an increase of abandoned transactions or declined payments.
The SCA rules came into effect on Saturday September 14 and are the final part of the EU’s Revised Payment Service Directive (PSD2) to be implemented. The new regulations require firms to take additional steps to ensure customers are who they say they are when paying electronically by using a two-level authentication method.
Several businesses have expressed concerns that their companies would be negatively affected by the new rules. However, Barclaycard’s data suggests that these fears have yet to turn into reality.
Having analysed transaction data from September 14 and 15, Barclaycards found that merchants have not seen an increase in abandoned transactions or declined payments.
“Our data offers encouraging news for merchants, whose transaction volumes have been, so far, unaffected by the go-live of SCA,” said Paul Adams, director of acquiring at Barclaycard Payment Solutions. “Barclaycard’s unique position as issuer and an acquirer means that we understand the concerns that both merchants and consumers have about SCA, and the balance the regulation necessitates between customer experience and security.”
Barclaycard has also introduced and new fraud protection service, Barclaycard Transact, to improve payment acceptance rates and reduce friction for shoppers.
“We have designed Transact to help our customers get the most out of the incoming regulation, by enabling them to provide a smooth payment experience for their shoppers, while at the same time reducing risk and managing fraud,” stated Adams.
The SCA rules means that customers have to identify themselves with two out of three ways.
The first is by providing something they have, which could for instance mean a credit card or a smartphone.
The second method is to show something they know, like PIN code or a password.
The third method is to show something that they are. This most usually means providing some simple biometrics like fingerprints or facial scans. However, the European Banking Authority has also provided a list of some left field methods that it is also thinking of accepting. This list includes tracking people’s heartbeats, taking pictures of their veins and measuring how they type.
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