Securing Digital Payments Around the Globe
As cross-border digital transactions become more common, customers are demanding increased security protocols to protect themselves from fraud. Some regions, like the European Union, have created regulations like PSD2 requiring payment services and providers to give their customers this extra layer of security that includes strong customer authentication.
How ACI Worldwide Supports SCA Compliance
All of ACI’s fraud solutions use the latest version of EMV 3D Secure, a security protocol based on a three-domain model, to reduce the risk of fraud and identity theft and ensure SCA compliance. ACI also works with merchants to develop strong SCA exemptions strategies that improve the customer experience and reduce lost revenue.
Merchants
What Is Strong Customer Authentication?
Strong customer authentication (SCA) is a PSD2 regulatory requirement that uses multifactor authentication to build an extra layer of security into your electronic payments platform.
Failure to comply with PSD2’s SCA requirements could result in issuing banks refusing merchant transactions, which, in turn, leads to lower authorization rates.
To achieve compliance, payment service providers must implement transaction monitoring to detect any unauthorized or fraudulent scams by documenting:
- Compromised or stolen authentication elements
- Transaction amounts
- Any known fraud scenarios in the provision of payment services
- Signs of malware infection during an authentication session
- The use of the access device or software provided to the payment service or provider
Strong Customer Authentication Exemptions
Although SCA is generally applied to all customer-initiated online transactions, PSD2 does allow for certain exemptions to eliminate friction in the payments process:
- Low-value payments (payments below $30 USD)
- Subscriptions and other recurring payments
- Trusted beneficiaries, including identified trusted merchants and secured corporate payments
- Transactions that real-time risk analysis solutions have identified as low-risk
Media
Additional Insights
Thriving Post PSD2: Conquering SCA Compliance
Going Beyond SCA and Preparing for PSD3
How an SCA Exemptions Strategy Can Grow Your Business
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ACI’s industry-leading fraud prevention is delivered via a powerful combination of machine learning, predictive and behavioral analytics, positive profiling, customized fraud strategies and expert support.
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Point-to-point encryption protects payment data by instantly encrypting the card and customer information from the terminal to the payments switch
Related Resources
Resources
Banking
Fraud Management for Acquiring Banks: Exceeding Expectations With SCA Exemptions Post-PSD2
Merchants in many markets experienced a decrease in footfall in physical stores across the 2021 holiday period. Although this is usually a busy shopping period in Europe, rising COVID-19 cases and new digital payment methods encouraged consumers to do more shopping online, across more channels and payment types than ever before.
Resources
Merchants
Assessing the Acronyms: Without PSD2, Is 3DS for SCA Relevant for U.S. Merchants?
PSD2 has been the “talk of the town” in European payments for the last few years—and the final piece of the puzzle, strong customer authentication (SCA), has certainly been a source of spirited conversation across the payments ecosystem.
