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
RELATED SOLUTIONS
Stay Secure
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.
ACI Fraud Management for Merchants
Multilayered, real-time fraud management and ongoing monitoring of online and mobile transactions for merchants and payment service providers
ACI Secure eCommerce
A true payments orchestration platform with sophisticated real-time fraud prevention capabilities, advanced business intelligence tools and access to an extensive global network of acquirers and alternative payment methods
Incremental Machine Learning
Avoid chargebacks and protect your business’s reputation by leveraging machine learning for fraud detection and prevention
Risk Analysts
Dedicated support from a global team of experienced fraud and risk analysts, working closely with merchants to develop and manage tailored, real-time risk strategies
Chargeback Protection and Management
Don’t allow chargebacks to impact your revenue — safeguard your business with ACI’s chargeback protection service
Payment Analytics for Merchants
Omnichannel payment analytics with customer dashboards, reporting and more to help merchants maximize profits with actionable data insights
Tokenization
Protect your customer data and reduce PCI compliance obligations with single and multiuse tokens
P2P Encryption
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.
