To be fully prepared for the enforcement of Strong Customer Authentication (SCA) regulations in the UK in September 2021, merchants must actively work with acquirers and take charge of exemption strategies now. ACI Worldwide, A major global provider Real-time payment and digital payment software solution..
SCA is a new European regulatory requirement based on PSD2 that aims 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 businesses will need to verify their identities with at least two steps of authentication. SCA checks are required for all digital payments over € 30, but can be exempted, for example, if the seller shows a low level of fraud. However, this requires a transaction risk analysis (TRA) to be performed and kept below the fraud set exemption threshold (ETV).
The SCA requires that fraud rates be assessed at the provider (issuer or acquirer) level, but relying on the issuer and acquirer to perform risk analysis is not enough. According to ACI, merchants need to enhance their fraud screening solutions. This is essential to mitigate transactional risk, protect and enhance the customer experience, and ultimately ensure revenue growth.
“Many merchants believe that future changes will be completely unmanageable and will be at the mercy of the acquiring bank again, but not,” said ACI Worldwide Director of Fraudulent Solutions. One Amanda Mickleburgh commented. “Merchants understand customer behavior and needs better than anyone else and have a large amount of transactional data that they can use to profile and prevent fraud. They sit down and acquire. Instead of waiting for someone to decide, we should go discuss what they need. “
ACI recommends five important steps that all merchants should take now.
- Define SCA Exemption Options Use the trend tracking feature to continue screening for fraud and provide complete visibility into fraud rates. This helps monitor and adapt to maintain control over fraud and cost exposures.
- Actively engage with acquirers to discuss and agree on exemption strategies. Merchants can and should actively seek exemptions. It is important to fully understand and promote the exemptions that are most appropriate for the individual merchant.
- Merchants should work with acquirers to agree on an exemption strategy to take risks only at a comfortable level in a way that meets the goals of the customer experience.
- Merchant must continually monitor acquirer compliance with TRA fraud indicators. You should not wait for it to go out of control before switching traffic to another provider.
- Merchant must be able to switch acquirers, route transactions to the highest rogue level acquirer, and negotiate acquiring services as needed. Merchants with strong fraud strategies will hold all their cards when it comes to choosing an acquirer that offers the highest conversion rates, SCA strategies, and commercials.
For more information on SCA, please visit: ACI fraud management for SCA and exemption And Benefits for multi-acquiring and merchants..
Merchants and acquirers must work together to ensure the success of SCA, says ACI Worldwide-
Source link Merchants and acquirers must work together to ensure the success of SCA, says ACI Worldwide-