September Friday 13th 2019: PSD2 SCA is the day that all online merchants need to change to 3d secure payments.
What is happening ?
Over the years increased credit card fraud online has cost the banks and merchants alot of money. This situation cannot continue. The reason there is an increase in fraud is that not all banks are talking to all payment systems, and the detection and notification of fraud cards is relatively slow in comparison to the speed of fraud networks.
What do I need ?
Make sure you are setup with your online processing merchant ( realex, global payments, worldnet etc ) to be enrolled in 3d secure. If you are already setup and running 3d secure then no action is required. If you are not then you need to apply to your merchant credit card provider and apply for 3d secure payments.
How does it change the customer experience ?
The customer is sent a verification code for their online purchase via SMS and they then type in this code at the payment page.
Will I have a drop off in sales ?
We predict you will while customers figure out that this is the new normal, we would recommend you have a 2nd and maybe 3rd payment method available like Paypal, Stripe or some such.
Do I need to change my website ?
No if you are using the hosted payment page method . This is where the customer chooses to pay via credit card on your site and then they are taken to a separate payment window.
Yes if you are taking payments on your actual website using the remote payment method. Many stores will use this method as it causes less shopping carts to be abandoned as its smoother for the customer.
How do I change my website for PSD2 ?
You need to contact your web developer. Depending on the platform you are on they will have access to a new payment plugin for your site and they will apply and test this.
What if I dont update my site for PSD2 ?
After September 13th if you are not 3D secure enrolled with your merchant 100% of your payments will be rejected.
Further reading :
- https://www.thepaypers.com/expert-opinion/september-friday-13th-2019-psd2-sca-prepare-for-the-day-everyone-fears-/772800
- https://internetretailing.net/themes/themes/new-eu-regulation-will-require-a-two-factor-payment-authentication-to-protect-retailers-mastercard-18031
- https://www.jpmorgan.com/europe/merchant-services/strong-customer-authentication