What is Strong Customer Authentication?
PSD2 regulation took effect in January 2018, aiming to enhance consumer rights and reduce rampant online fraud.
A key element of PSD2 is the introduction of Strong Customer Authentication (SCA). To help prevent fraud, all financial transactions involving EU participants are required to have 2-factor authentication unless specifically exempted.
The deadline for SCA has been subject to numerous delays, but for most of Europe the end of 2020 is a final deadline, with an extension already ruled out.
There are different ways to meet SCA regulation—providers need to balance security and the user experience. There are worries that poor SCA solutions will cost merchants billions in abandoned transactions. But that doesn’t need to be the case, as Encap SCA solution fulfils security needs and regulatory demands without compromising great user experience.