04/15/2021 | Press release | Distributed by Public on 04/15/2021 03:55
SCA is a new European regulatory requirement under PSD2 that intends to protect consumers and businesses from fraud by making it more difficult for fraudsters to make payments from their accounts. Under the new regulations, consumers and business must verify their identity with at least two steps of authentication. SCA checks are mandated for every digital payment over €30, but can be exempted if the merchant has demonstrated low levels of fraud, for example. However, this requires that transaction risk analysis (TRA) is in place and fraud is kept below set exemption threshold values (ETV).
Although SCA requires that fraud rates be assessed at the provider (issuer or acquirer) level, it isn't enough to rely on issuers and acquirers to carry out risk analysis. According to ACI, merchants need to up their fraud screening solutions, which is vital for de-risking transactions, protecting and enhancing the customer experience and ultimately securing revenue growth.
'Many merchants still believe that the upcoming changes are fully out of their hands and that they will be at the mercy again of their acquiring bank; however, this is not the case,' comments Amanda Mickleburgh, director, fraud product solutions, ACI Worldwide. 'Merchants understand the behaviors and needs of their customers better than anyone and have significant amounts of transactional data that can be used to profile customers and prevent fraud. They must not sit back and wait for their acquirer to decide, but rather go and argue for what they need.'
ACI recommends 5 key steps all merchants should take now:
To learn more about SCA, please visit ACI Fraud Management for SCA and Exemptionsand Multi-Acquiring and the Benefits for Merchants.
About ACI Worldwide
ACI Worldwideis a global software company that provides mission-critical real-time payment solutionsto corporations. Customers use our proven, scalable and secure solutions to process and manage digital payments, enable omni-commerce payments, present and process bill payments, and manage fraud and risk. We combine our global footprint with local presence to drive the real-time digital transformation of payments and commerce.
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