SCA measures are managed by the revised Payment Services Directive (PSD2).
What is 3DS2?
3DS2 or 3D-Secure authentication service is a standardised payment regulation for authenticating online card transactions. This is set to become the prime authentication method for online card payments.
What are the benefits of using 3DS2?
Two-factor-authentication: 3DS2 implements two-factor-authentication to make the experience more convenient for your customers. It’s a method of confirming identity by using a combination of two different factors.
Fewer false declines: The new protocol provides more information about the transaction, which helps reduce the number of false declines.
Less cart abandonment: Your customer will have a faster checkout process, and seamless shopping experience.
What are the verification methods of SCA?
SCA is a security measure that relies on two-factor authentication. As a result, these factors are strictly customer-based.
If you sell goods or services online you must confirm the customer’s identification using at least 2 of the following methods:
Something the customer has (i.e. phone or tablet)
Something the customer is (i.e. facial recognition or fingerprint)
Something the customer knows (i.e. PIN or password)
How does SCA work?
Your customer will go to the checkout of your website to pay for a good or service.
They must identify themselves using 2 of the 3 verification methods.
In the cases of remote or mobile transactions, the customer will be sent a unique, one-time verification code to their phone to authorise the transaction.
Once the authentication process has been successfully completed, the payment will be processed.
SumUp and SCA
As a regulated financial company, SumUp is obliged to implement SCA standards for the following:
Only contactless transactions over £45 will be subject to SCA. Transactions below this amount won’t require verification.
As Payment Links transactions fall under SCA regulations, customers using this method of payment will be subject to SCA verification.
Virtual Terminal transactions are exempt from SCA verification.
For extra fraud protection, we have implemented SCA via the Online Store checkout process.
To help prevent fraud, we have implemented SCA also for SumUp Card. It works if you enable SCA on your device and if the online shop has already implemented 3DS on their side.
How to communicate SCA to customers
Whether it’s in your “About Us” page on your company website or on a small note in your shop, let your customers know why you’re required to impose SCA regulations. Emphasise the extra layer of security that these measures bring.