Four digital, ecommerce and payment associations endorse warning study

The study underlines that Targeted Authentication, which requires customer intervention in the authentication process relevant to the risks associated with each transaction, is a better alternative than Strong Customer Authentication. 

Targeted Authentication ensures both a high level of online security and a smooth transaction process for the benefit of European consumers, online merchants and the wider economy. The associations involved urge the European Banking Authority (EBA) to reflect the need for both a risk-based and a technologically neutral approach by allowing Targeted Authentication in their Regulatory Technical Standard (RTS). The draft RTS is open for stakeholder comments until 12 October 2016.

The European ecommerce sector calls on the EBA and the European Commission to allow solutions that ensure a secure payment experience for customers. If the final EBA standards mandate Strong Customer Authentication for all online payment transactions regardless of the risk involved, it will create a complicated process, a negative customer experience and more abandoned transactions.