From 14th September 2019, the manner in which payments are processed is changing. Strong Customer Authentication is a new rule coming into effect in Europe. What this means is that an extra layer of security is added when making a purchase online and currently this usually is via an SMS sent from your bank with a code to input but as technology is developing rapidly, options such as fingerprint and facial recognition can be used but this is dependant on your banks’ verification process.
How do I know this will impact my business?
If you have an e-commerce store then you’ll need to ensure you have a clear understanding of this new rule.
In order to meet this new PSD2 regulation, you should ensure you are fully compliant if your business is impacted by this new update. If any of the following apply to you, then you’ll be impacted by SCA.
- Your website serves customers within the European Economic Area (EEA)
- If your business is located within the EEA
- You accept card payments on your site (credit, debit etc)
The method used to achieve compliance with this new change is called 3D Secure 2. Our friends at Stripe have some excellent detail on this which you can read here https://stripe.com/ie/guides/3d-secure-2
How will this affect me?
2Cubed have been in contact with Stripe to clarify what action is required and many of our customers who use Stripe, Global Payments, Shopify Payments and so on have been in touch for clarification. The good news is that no action is required on your end. The liability will lie with the e-commerce platforms in order to meet compliance. The following info came directly from Stripe; Right off the bat if you’re using a third party plugin/platform such as Squarespace, Wix, WooCommerce etc then they will be carrying the liability of ensuring your store/checkout flow is SCA compliant. We are working closely with our partners to get their integrations updated before September.
At 2Cubed Web Design & Development, we are on hand to assist you with any of the e-commerce needs above, helping you to understand this new regulation. We also offer a number of services to help you grow your online presence. Check out our list of services – https://2cubed.ie/services/