Despite SCA Delays, Merchants Could Benefit From Early Adoption

Chargebacks911® COO’s New Column for Forbes

Strong customer authentication (SCA) standards are a critical component of recent legislation impacting the digital market, such as PSD2 and the CCPA. Monica Eaton-Cardone explains in her latest guest feature for Forbes that, despite delays in rolling out the legislation, there’s an incentive for merchants to be compliant with these standards as soon as possible.

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As Monica relays, the European Banking Authority recently pushed back the SCA compliance deadline to the end of 2020. This makes it easier to ensure widespread compliance. But despite the extra time, it’s still not clear that merchants can become compliant.

“Plenty of merchants, both in the European Economic Area (EEA) and outside, are resistant to these new standards,” Monica says. “As they see it, they're contending with greater restrictions without any added slack in other areas.” She also cites consumer expectations and a lack of transparency as additional obstacles. Ultimately, the solution to manage these concerns is optimization.

“With strong customer authentication requirements, the goal isn't to punish merchants. Instead, the purpose is to both prevent fraud and to train all parties — merchants, consumers and institutions — to understand the value of diligence and compliance with best practices.”