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13th September 2019 - What is 3D Secure 2?

Interesting Insight into the benefits of Strong Customer Authentication from Mícháel. At Future Ticketing we are delighted to be working with people like Mícháel deploying tools to ensure Future Ticketing has the best fraud prevention in Ticketing.

SCA (Strong Customer Authentication)

The directive defines strong customer authentication essentially as two-factor authentication an authentication based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) that are independent, in that the breach of one does not compromise the reliability of the others, and is designed in such a way as to protect the confidentiality of the authentication data

What is 3D Secure 2?

EMVCo, an organization made up of six major card networks, recently released a new version of 3D Secure. 3D Secure 2 (also called EMV 3-D Secure, 3D Secure 2.0 or 3DS2) aims to address many of the shortcomings of 3D Secure 1 by introducing less disruptive authentication and a better user experience.

3D Secure 2 (3DS2) introduces “frictionless authentication” and improves the purchase experience compared to 3D Secure 1. It’s expected to be the main card authentication method used to meet the upcoming Strong Customer Authentication (SCA) requirements in Europe.

3D Secure 2 allows businesses and their payment provider to send more data elements on each transaction to the cardholder’s bank. This includes payment-specific data like the shipping address, as well as contextual data, such as the customer’s device ID or previous transaction history.

The cardholder’s bank can use this information to assess the risk level of the transaction and select an appropriate response:

If the data is enough for the bank to trust that the real cardholder is making the purchase, the transaction goes through the “frictionless” flow and the authentication is completed without any additional input from the cardholder.

If the bank decides it needs further proof, the transaction is sent through the “challenge” flow and the customer is asked to provide additional input to authenticate the payment.

Even if a transaction follows the frictionless flow, your business will benefit from the same liability shift as for transactions that pass through the challenge flow.

11th September 2019 - SCA (Strong Customer Authentication)

European Banking Authority published new guidance on 21 June 2019, which allows national regulators to postpone the SCA enforcement date for select banks and payment providers. With the help of our friends in Stripe we are keeping an eye on implementation timelines below is our latest update my country.

Announcements by national regulators

Austria

On 19 August 2019, the Austrian regulator announced that they will not enforce SCA on online payments from Austrian cards by 14 September. They expect to have additional details on the exact enforcement timeline by late September.

Belgium

On 27 August 2019, the Belgian regulator acknowledged the new guidance by the European Banking Authority and shared that they’re working on a phased implementation plan. The length of the delay, any intermediary milestones, or which banks the delay affects have not been officially confirmed.

France

On 9 July 2019, the French regulator acknowledged the new guidance by the European Banking Authority and shared that they’re working on a phased implementation plan. The length of the delay, any intermediary milestones, or which banks the delay affects have not been officially confirmed.

Germany

On 21 August 2019, the German regulator announced a temporary enforcement delay for German cards to give businesses more time to prepare for the new requirements. Although they will not enforce SCA by 14 September, the exact length and scope of the delay has not yet been defined.

Ireland

On 8 August 2019, the Irish regulator announced a limited migration period to give businesses and banks more time to prepare for the new requirements. Although they do not anticipate a disruption of payments services on 14 September, the exact length and scope of the delay has not yet been defined.

Italy

On 1 August 2019, the Italian regulator acknowledged the new guidance by the European Banking Authority and shared that they’re working on a phased implementation plan. The length of the delay, any intermediary milestones, or which banks the delay affects have not been officially confirmed.

Luxembourg

On 30 August 2019, the Luxembourg regulator announced a limited enforcement extension of SCA for online payments. Banks will need to contact the regulator directly to secure this delay. They expect to have additional details on the exact enforcement timeline from the European Banking Authority in the last quarter of 2019.

The Netherlands

On 8 August 2019, the Dutch regulator acknowledged the new guidance by the European Banking Authority and shared that they’re working on a phased implementation plan. The length of the delay, any intermediary milestones, or which banks the delay affects have not been officially confirmed.

Norway

On 20 August 2019, the Norwegian regulator announced a limited enforcement extension. Banks will need to contact the regulator directly to secure this delay. The length of the extension, any intermediary milestones, or which banks the delay affects have not been officially confirmed.

Poland

On 19 August 2019, the Polish regulator announced a limited enforcement extension. Banks will need to contact the regulator directly to secure this delay. The regulator expects to have additional details on the exact enforcement timeline from the European Banking Authority after 14 September.

UK

On 13 August 2019, the UK regulator announced an 18 month phase in period to give banks and businesses more time to prepare for these new requirements. As a result, we do not expect banks to fully require SCA for payments from UK cards until March 2021.