Get our hottest stories delivered to your inbox. Other commentators do not see jurisdictional differences as an added complication. The current pandemic clearly inhibits this and will place delays on businesses being able to complete deployment,” she said. As ever, Braintree strongly recommends you integrate and test our 3D Secure 2 (3DS2) solution as soon as possible to help reduce the risk of SCA-related declines if and when issuers begin to enforce the requirements. For more information click, Strong Customer Authentication action plan, It's still e-invoicing, only better: How AI is revolutionising electronic invoicing, How CBDCs can operate seamlessly with existing networks – and why they should. For Bambora Connect matters please email If done correctly, all subsequent payments can be made without a 3D Secure question to the card customer. Updated (October 17, 2019): The EBA has published its opinion on the deadline and process for completing the migration to SCA. We have summarized what you as a merchant need to know in order to be ready for the new rules. It turned out that many, both merchants, card issuers and payment service providers, were not ready to implement SCA for all online payments. Saturday 10.00-14.00 Terms and Conditions, For optimum operation, this website makes use of cookies. For both "Out of Scope" and "Exemptions", there are regulations for when the different cases may be applied. The basic rule is that a customer only needs to do SCA when the card is to be stored and recurring payments are registered for the first time. “Pushing back the deadline for the migration to SCA standards makes sense during these exceptional circumstances. The open letter recommends a further six-month delay to SCA The European Banking Authority (EBA) has released an opinion stating that the revised deadline for migration to SCA has been set at 31 December 2020, a 15-month extension from the original implementation date of 14 September 2019. However, in order for this to work, transactions must be flagged correctly in accordance with the regulations for payments with stored cards. This could be a fundamentally huge shift in how a bank makes money, as they will have to compete with newer firms.”. How SCA Applies to Common Payment Scenarios, PSD2: Strong Customer Authentication Explained, 3D Secure 2: Next-generation Authentication. The European Banking Authority (EBA) published today an Opinion on the deadline for the migration to SCA under the revised Payment Services Directive (PSD2) for e-commerce card-based payment transactions. About: Accelerating The Real-Time Payments Demand Curve:What Banks Need To Know About What Consumers Want And Need, PYMNTS  examines consumers’ understanding of real-time payments and the methods they use for different types of payments. The European Banking Authority recently announced it might provide extensions on a “exceptional basis” only. Any delay will only increase the problem of identification in the future … What’s more, the longer we draw out the implementation period, the more uncertainty we have regarding the final form of the regulation,” said Subramanyan. Furthermore, the EBA notes that consumers will be protected against fraud as required by the law and NCAs should, therefore, communicate to their PSPs that the liability regime under Article 74 of the PSD2 applies and that issuing and acquiring PSPs are still liable for unauthorised payment transactions. We will implement the newer versions to all our online customers in order to make it easier for frictionless payments. NEW PYMNTS STUDY: ACCELERATING THE REAL-TIME PAYMENTS DEMAND CURVE – NOVEMBER 2020. Understanding if, when, and how Strong Customer Authentication (SCA) applies to your business can be confusing -- especially with all the rumors circulating and changes being announced by the European Banking Authority (EBA) and national regulators. PSD2 came into force on September 14, 2019. The European Banking Authority (EBA) has postponed the deadline by 15 months (initially 14th September 2019), but it won’t be postponed again. The EBA has given NCAs and PSPs 14 months to comply The Opinion sets the deadline to 31 December 2020 and prescribes the expected actions to be taken during the migration period. It might make sense if the regulators accepted at this stage that the deadline … Against this backdrop, the EBA accepted that, on an exceptional basis and in order to avoid unintended negative consequences for some payment service users after 14 September 2019, NCAs may decide to work with PSPs and relevant stakeholders, including consumers and merchants, to provide limited additional time. However, the European Banking Authority has extended the deadline for the requirement that strong customer authentication (SCA) must be implemented for all online payments, until December 31, 2020. The challenger banks are picking up steam. Introduction. Yet only 40 percent of merchants in the European Union (EU) state they will be ready by September 2019, while another 44 percent report that they will be prepared only when it becomes active, according to the latest PSD2 Tracker. The way online payments are made in Europe will enter a new era from 31 December 2020 as the Strong Customer Authentication (SCA) requirements of the Payments Services Directive II come into force.