Everything you should know about PSD2 and Strong Customer Authentication (SCA)
Safety while making your payments either online or in-person needs to be secured up to a full extent. To ensure high authenticity for a similar reason Europe has introduced the Strong customer authentication (SCA) system. The goal of this PSD2 is to make the process of electronic transactions or payments more secure and works on a double authentication system.
However, there is a majority of people who do not have a solid idea about PSD2. Therefore, today we will discuss more about the stronger customer authentication (SCA).
What is PSD2 Strong customer authentication?
Strong customer authentication (SCA) is the new method that is introduced all around Europe that is meant to regulate payment procedures. The main goal for this organization is to lower the number of risks for fraudulent activities that often occur. Strong customer authentication also refers to making the methods of payment contactless that can be operated offline as well.
To get your payments accepted and meet ends with the strong customer authentication (SCA) you might have to start inputting additional verification during your checkout movement. Some authentications are required by the customer to choose from like:
- - Something that is only known to the customer. It can be like a pin code or password.
- - Something a customer might have in possession. It can be an electronic device or computer hardware token.
- - Anything that confirms the identity of the customer. It can be your biometric or face recognition method.
All these requirements were first introduced on 14 September 2019 in Europe by the majority of the banks. It is important to keep in mind that the banks are now declining offers that do not work or regulate on the terms of strong customer authentication (SCA).
When a Strong Customer Authentication (SCA) can be used?
Strong customer authentication is the system or program that is customer-initiated that aids them in for easy and contactless offline payments and transactions while they reside in Europe. Therefore, as an outcome, the majority of the credit card payments and all of the bank transfers now check whether you have strong customer authentication or not.
However, if we talk about the working of debit cards then they do not fall under the SCA category as they are usually initiated by the merchants. Hence, they do not feel the need for any authentication purposes. For the payment of online cards, the requirements under the SCA must be followed.
What are the procedures for authenticating a payment?
Generally, the most common way until the recent day is that the online card payment is dependent on 3D security. That is a payment securing standard offered by the variety of European cards. This system is not complicated in fact, it has various benefits. You might receive an online message or a code on your mobile that you must use to confirm the payment you made. It might even ask for your fingerprint while using the mobile banking application.
What are the benefits of using Strong customer authentication (SCA)?
There are countless benefits of using strong customer authentication (SCA). However, some of the highlighted and the major benefits of SCA are mentioned below.
- Novelty and customer procurement
The process of strong customer authentication is very simple and with these steps or methods, you can easily aid the customers with a little interest in agreeing to online payments. With the use and implementation of SCA using the new facilities become easier such as top-ups, credit cards other self-facilities managements.
With the loss of use of the strong customer authentication system, all these processes become much more difficult to use and apply in your everyday life.
- Enhanced security
The other major reason to use or the benefit to the customers is the enhanced or better security levels. This method is the most ideal way for the customers to lock their money in a completely safe and secure place with an authenticated key. Moreover, banks or the higher authorities also get a high level of customer’s trust and can get them to invest with your bank too. This can eventually earn you or the bank some added profits.
- Avoids fraudulent activities
Now and then the level of cybercrimes and online fraud have been reported the majority of times. Therefore, a lot of people now avoid making any sort of online or offline payments using credit cards or top-ups. However, if you are among one of those customers then do not worry. With strong customer authentication, you can start paying for the things you like without getting concerned about security.
As the main motto of the SCA is to protect the customer and hide the details of your credit card. Your payments can also be made offline that require a double authentication system.
- The common authentication platform
The strong customer authentication platform has proven to be the common ground for the majority of the banks and is now all set to earn the trust of customers. This plays an important role in keeping similar security measures across the country especially all-around Europe.
- SCA helps in reducing terrorism and location tracking
Strong customer authentication does not only help with reducing cybercrimes but also plays a major role in lowering the risks associated with the activities that might be suspicious like, terrorism. This is a major security threat to the world and needs to stop all the ways for such events to occur.
Moreover, with the use of such double authentication processes, you can avoid sharing your location. As it does support the payments to be made offline as well. Therefore, if you are worried for being the target of such malicious attempts then SCA can be the ideal way for you.
Conclusion
If you are looking out for better security terms while paying or making transactions through credit cards then make sure to give a read on the mentioned information about strong customer authentication. It describes everything you might need to know about the PSD2 SCA system.
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