How we shop online changes today with new SCA requirements
Customers should expect changes in the way they shop online from today, in a move to combat online fraud.
The changes are a result of new Strong Customer Authentication (SCA) requirements, a set of rules that will change how you confirm your identity when making online purchases.
They will mean that, when customers buy something online, they will be asked to verify their identity, for example, through their banking app or a one-time passcode via text or phone call.
While SCA rules have applied to a small number of transactions for some time, the proportion of transactions for which SCA requirements apply has been steadily increasing since the start of this year as merchants and Payment Service Providers (PSPs) readied to meet the enforcement date, when all transactions must be SCA-compliant.
Today’s deadline comes almost three years after the SCA requirements were announced in September 2019. As increasing amounts of purchases are being made digitally, it is hoped SCA will help reduce fraud and better protect customers and their money when shopping online.
More transactions could be declined as it adds an extra layer of complexity to the online shopping experience, banking firm Barclaycard has warned.
Rob Cameron, CEO of Barclaycard Payments, said: “The introduction of mandatory SCA is the most significant payments milestone since the rollout of chip and pin more than 16 years ago. While the new regulation is a positive step to keep customers’ data safe online, our research shows that shoppers are inclined to abandon transactions if it takes too long to check out, demonstrating how important it is for businesses to have sophisticated fraud checks in place.
“Merchants who aren’t yet ready should start to prioritise becoming compliant to avoid losing out on sales. Our data has already shown the impact of not being prepared, and this will only get worse if steps are not taken now. The message to retailers is clear; if you don’t make buying online quick and easy for your customers they will simply go elsewhere.”
Tom Ironside, Director of Business & Regulation at the BRC, said: “Retailers have been working hard to prepare for the Strong Customer Authentication requirements, ensuring online purchases are both as safe and easy as possible. The BRC and our members have worked with suppliers to ensure multiple fraud checks are performed behind the scenes and any additional friction is kept to a minimum. Customers should be reassured that buying online has never been safer.”
