Online fraud protection company Signifyd has launched its strong customer authentication (SCA) tool which will help firms meet impending deadlines.
The deadline for SCA, which is part of the EU directive PSD2, is 14 September 2019. After this date, merchants must increase the security of online payments.
Under the regulation, European consumers to confirm their identities for online purchases with two-factors of authentication. This can be either something they know, like a password, something they have such as a phone and something physical about them, like a fingerprint.
The Signifyd Seamless SCA tool will help retailers ensure compliance while ensuring friction-free buying experiences. Compatible with the EMV E-D Secure 2 protocol, the solution is capable of performing SCA without step-ups for all transactions, not only exemptions.
Exemptions are based on transaction values, fraud risk and whitelists, and Signifyd believes these will cause administrative burdens for retailers and will added to times and costs. The company claims the most commonly cited exemptions are not always applicable.
There has been a lot of talk regarding SCA and the market readiness. The European Banking Authority (EBA) recently offered its opinion on SCA following numerous queries and requests for the application date to be postponed.
The European authority stated that there will be no extension as it believes the market has had enough time to prepare. Although, some leeway was given to certain providers, on an exceptional basis. In Denmark, this requires an agreement with the FSA on the timeline and measures implemented in the meantime.
Signifyd vice president of operations J. Bennett said, “Avoidance strategies, such as optimizing exemptions to bypass the need for SCA, are not a real solution. Delivering a great SCA experience is.
“It appears enforcement of strong customer authentication will be delayed, especially after the Joint Industry Statement issued Aug 1 by Visa, Mastercard and European payments and retailer consortiums. But retailers that prepare themselves now will hold a competitive advantage when enforcement begins.”
Signifyd uses AI technology to identify fraudulent orders made within the e-commerce space. Its API-based solution automates the back-office processes, automatically fulling orders, cancelations, payouts, claims, and chargebacks.
The RegTech recently released a new chargeback recovery solution to help merchants fight fraud. The service will help companies combat chargebacks, which account for $14bn in annual losses.
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