The SCA legislation, implemented under the European Union’s Payment Service Directive (PSD2) required merchants to offer SCA for online transactions to help protect customers against fraud. Research found that more than half of retailers (57%) reported an increase in the level of fraudulent transactions compared to the same time last year. It also found that just one in five (22%) retailers were ready for new payment regulations that were supposed to take effect this month.
The legislation was originally slated for 14 September 2019, but the UK and several other nations have announced implementation delays. The timelines and milestones for implementation are not fixed and vary from country to country. However, merchants selling goods to customers in the countries that have not delayed implementation of SCA will need to comply with the legislation for transactions from those countries. Analysis of Adyen’s platform data has revealed that no UK bank has mandated SCA under the regulation as of the 16 September 2019 increasing the complexity for UK retailers to meet the SCA regulations with compliant countries.
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