Ecommerce Europe agrees on the introduction of risk-based approach for e-payments

In light of the publication of the Regulatory Technical Standards (RTS) on Strong Customer Authentication (SCA) by EBA, the final draft’s approach safeguards online merchants’ business models while increasing the overall security and confidence in electronic payments and tackling online fraud.

Ecommerce Europe furthermore welcomes the decision taken, to introduce risk-based assessments for transactions based on the overall fraud levels of the payer’s Payment Service Provider’s fraud rate. Considering the EBA’s introduction of risk-based analysis for transactions between low-value transactions of up to EUR 30 and transaction up to EUR 100, Ecommerce Europe calls on the European Commission to allow a risk-based approach for all transactions up to EUR 100.

In any case, Ecommerce Europe believes that a one-size-fits-all approach to online fraud prevention through monetary thresholds does not effectively address the difference in industries and sizes of business prone to online fraud.

Ecommerce Europe is equally pleased to see that the European Banking Authority has forgone its previous recommendation to introduce an independence requirement between the devices, applications and software between which transactions are initiated and authentication codes are received.