On 14 September 2019, new requirements for authenticating online payments have been introduced in Europe as part of the second Payment Services Directive (PSD2). Arising from PSD2, Strong Customer Authentication (SCA) is a new set of requirements consisting of an additional security step for some online and in-store purchases.
Strong customer authentication is a new European requirement created to make online payments more secure than before. When a European shopper makes a payment, extra levels of authentication will be required at the time of the transaction. Currently, the most common way of authenticating an online card payment relies on 3D Secure 2.0 which is an authentication standard already supported by the vast majority of European cards. This service gives additional protection to card users by introducing another layer of password protection.
This type of two-factor authentication based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is). These must be independent from one another, in that the breach of one does not compromise the reliability of the others, and is designed in such a way as to protect the confidentiality of the authentication data.
The key to digital commerce regulation success is to be the source of the trusted identity your customers use for all of their digital banking activities. The changes introduced by this new regulation are set to deeply affect internet commerce in Europe. To comply with PSD2 and SCA and accept payments, ecommerce merchants have to ensure their online stores accept payments through updated technical solutions put in place by payment service providers that support 3D Secure 2.0 protocol.
Nummuspay billing solution has been created to simplify payments while balancing security and convenience for both merchants and their customers and helps you build payment flows that adapt to SCA requirements and any relevant exemptions, protecting your conversion rate. Our platform supports a lot of payment gateways that are fully compatible with PSD2 and SCA protocols. In addition, nummuspay has its own payment gateway that supports 3D Secure 2.0 protocol and it’s available for businesses based in Europe as well.
