14th March Deadline Is Approaching – Retailers Need to be Ready for SCA
- Ed Whitehead, MD EMEA at Signifyd
- 15.02.2022 12:30 pm #payments
Comment from Ed Whitehead, MD EMEA, Signifyd:
" The new payments regulation, set for enforcement in the UK on 14th March, is a once-in-a-generation change with the potential to massively disrupt an enterprise or to push an enterprise ahead of its competitors when it comes to customer experience.
“But while SCA itself will be a vital pillar of protection for merchants and consumers alike, there is more to fraud and more to fraud protection than simply deploying an SCA solution. It is not, as some have mistakenly assumed, the only fraud solution a merchant will ever need, and one only need to look to the European countries where enforcement has begun in order to understand the limits of SCA’s fraud protection.
“Many transactions are not subject to SCA, and whilst this is a saving grace for merchants who are worried about online customer experience, it means they will still be vulnerable to fraudsters who will inevitably target the transactions which are exempt from this added SCA layer. Merchants should also consider the fact that a low-fraud rate will be vital for providing a top-notch customer experience once SCA is enforced, and this is only possible by ensuring they have the most robust defenses in place. With the deadline for SCA fast approaching, Merchants need to evaluate the market for solutions that are not just compliant with SCA, but also minimise the impact to customer experience.
“Fraud rates and risks vary by retailer and even by retail vertical. But as SCA rolls across Europe and becomes enforced in the UK, it is clear that the new regulation is not a be-all fraud solution and merchants will need to consider other fraud solutions to protect their business and maintain an excellent customer experience online.”
