Financial services technology developer FIS has launched its 3DS Flex solution which will help companies overcome the challenges being brought by strong customer authentication (SCA).
SCA is a rule under the second payment services directive (PSD2) which requires online transactions to be backed by two-tier authentication.
To meet compliance, merchants need to use 3D-Secure (3DS) or 3DS2, an updated version of the technology. It is a system designed to lower instances of online fraud by ensuring a cardholder’s bank verifies the shopper when making a sale.
While both versions of the technology can meet compliance, the original software does not support certain technologies like in-app transactions. 3DS2 improves on the original system by leveraging more than 100 data points to authenticate players in the background and be used across broader systems, like mobile devices, and use services like biometrics.
The 3DS Flex solution automatically routes payments for merchants through the most optimal version of authentication supported by the issuing bank. It also protects consumers from online fraud by utilising geolocation data, shopper history and other datasets to verify the shopper’s identity.
The solution can authenticate payments anywhere in the world, not just SCA-regulated markets.
FIS SVP product strategy Charles Damen said, “Regardless of the SCA timeframe announced by local regulators, we are ready to help businesses become compliant and apply SCA, so they can offer an improved authentication experience and minimize unnecessary declines or abandonment.
“In an increasingly competitive ecommerce environment, it’s vital for merchants to consistently maximize payment acceptance. Being the first to offer the latest in security authentication with 3DS2.2 will allow our merchants to offer a slick, secure shopping experience to their consumers.”
SCA has been tough for merchants to prepare for. It was initially positioned for implementation in September 2019, but an extension was offered so companies could get their systems ready.
The UK’s FCA delayed the implementation of SCA by 18 months, with December 2020 the new final deadline.
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