Monica Eaton-Cardone Explains What Strong Customer Authentication Means for Chargebacks
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Strong Customer Authentication—commonly known as SCA—is transforming how payments are conducted throughout Europe. However, as Monica points out, compliance with SCA will help merchants to avoid liability for some chargebacks tied to fraud claims.
“Factually, SCA…is only going to help you reduce those chargebacks that were filed under a ‘Fraud’ reason code. So, imagine I’m a consumer, and I file a chargeback claiming identity theft. Two-factor authentication was used, 3-D Secure was used. Well, then, the chargeback won’t stand.”
However, Monica also notes that this does not necessarily mean a total drop-off of chargebacks for merchants. Quite the opposite, in fact; even with SCA in place, there are still a variety of channels through which a cardholder can engage in friendly fraud.
You can view the full interview with Monica below: