New European regulations for payments

Since the September 14, 2019, a new regulation intended for the European market will take effect and may impact the means of payment you use on your website.

Indeed theStrong Customer Authentication (or Strong Customer Authentication) will be mandatory for all online transactions in the European Economic Area. Payments by credit card will require a more sophisticated payment experience, including the use of 3D Secure. Transactions that do not follow the new user authentication protocol may be declined by banks.

To prepare for the SCA you should:

  • Determine if your business is impacted
  • Make the necessary changes before September 14, 2019

Who is impacted?

  • Companies based in the European Economic Area
  • Companies serving customers based in the EEA
  • Companies accepting credit or debit cards

While some low-risk transactions will not require strong user authentication, banks will be able to choose whether or not to honor certain exemptions (depending on the fraud rates associated with your PSP or bank), so even if you only carry out low-risk transactions, you should nevertheless integrate this new protocol into your purchasing process.

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