Businesses not compliant with Strong Customer Authentication (SCA) miss out on £2m in sales each day, a report from Barclaycard Payments claims.
The company, which processes £1 in every £3 spent on credit and debit cards in the UK, claims that 73% of compliant businesses report that online payment fraud levels have declined since the regulation was introduced 200 days ago.
Among those to have experienced a decline in fraud have seen an average reduction of around 25%. As a result, around 63% with an ecommerce channel believe SCA has had a positive impact.
However, not all businesses are compliant. The report found that 28% of businesses are not fully compliant with the regulation. Barclaycard’s transaction data shows that over £2.07m in sales is ed every day because payments are being routed through non-secure channels and failing mandatory security checks.
Barclaycard Payments managing director of specialist sales Kirsty Morris said, “It’s reassuring to see how impactful the introduction of SCA has been in combating the levels of online fraud in the UK.
“While most businesses have adapted well to the new levels of security, it does remain concerning that so many are still yet to become fully compliant. Our data shows that businesses risk losing millions in revenue by not upgrading their systems, so it’s important they look to make the shopping experience as safe and smooth as possible for their customers.
“By deploying sophisticated fraud checking solutions such as Barclaycard Transact, companies can ensure that both their ecommerce shops and their customers are better protected from fraudsters, while also reducing friction at the checkout.”
The report also found that 80% of shoppers see the additional security checks as a positive development.
A report from Nuapay earlier in the year stated that 99% of merchants have seen a rise in payment declines since the implementation of SCA.
Copyright © 2022 FinTech Global
