Retailers could lose £3.64m in sales each day as the Strong Customer Authentication (SCA) regulation deadline approaches, according to Barclaycard Payments.
The company, which processes £1 in every £3 spent on credit and debit cards in the UK, also found that merchants lost out on £102m worth of sales throughout February.
The number of transactions subject to SCA checks has gradually increased, which has now led to 43,000 transactions decline each day, it said. As of today, all transactions will be subject to SCA checks.
According to Barclaycard’s report, 14% of shoppers noticed an increase to online payment transactions. Additionally, 37% went to another retailer to complete the purchase and the same amount stated they were unlikely to use a merchant again if their payment is rejected without explanation.
It also stated that 93% of transactions which were processed through the Barclaycard Transact platform were approved on the first attempt, compared to just 69% of transactions going through less secure channels.
Barclaycard Payments CEO Rob Cameron said, “The introduction of mandatory SCA is the most significant payments milestone since the rollout of Chip & Pin more than 16 years ago. While the new regulation is a positive step to keep customers’ data safe online, our research shows that shoppers are inclined to abandon transactions if it takes too long to check-out, demonstrating how important it is for businesses to have sophisticated fraud checks in place.
“Merchants who aren’t yet ready should start to prioritise becoming compliant to avoid losing out on sales. Our data has already shown the impact of not being prepared, and this will only get worse if steps are not taken now. The message to retailers is clear; if you don’t make buying online quick and easy for your customers they will simply go elsewhere.”
Copyright © 2022 FinTech Global
Copyright © 2018 RegTech Analyst
