Organisations with an online presence need to be sure they are ready for full Strong Customer Authentication (SCA) compliance (i) for e-commerce transactions. From 14 March 2022 any merchant that fails to comply with the requirements could be subject to Financial Conduct Authority (FCA) fines and risk customer purchases being declined.
Protecting merchants and customers from fraud
SCA is a positive change and protects both the merchant and the customer. If a customer pays online for goods using an SCA process, but later claims it was a fraudulent transaction they will have to prove that the transaction wasn’t made by them. In the past, a fraudulent transaction meant the merchant had to refund the money and incurred chargeback costs before any investigation into the transaction’s legitimacy had begun. Encoded’s Fraud Prevention Platform (FPP) is a new secure payment solution introduced to speed-up fraud checks and ensure more transactions are processed successfully.
What are the costs of implementing SCA?
An alternative way is to work with an established payment services provider (PSP) like Encoded, which means the transaction process and administration is managed by the PSP from start to finish. The merchant captures the customer transaction and the PSP carries out all the secure checks required by the acquirer to verify the card with the card issuer behind the scenes. With checks authorised, the PSP issues a secure link that takes the customer through the online process to complete the transaction.
Contact centre mail order, telephone order (MOTO) payments and fraud
Encoded’s Fraud Prevention Platform streamlines verification checks and allows the agent to send a secure link (via email or text) to the customer for authentication. Once the customer acknowledges the link, the transaction is verified and becomes the equivalent of a secure ecommerce payment from a trusted device, enabling 3D secure validation and a higher degree of successful completion. It provides an easy, secure way to reduce the number of potentially fraudulent transactions in contact centres.
Choosing the right payment service provider for contact centre and ecommerce payments have never been more intrinsic to the future success of your business. Now is the time to start thinking about how to protect your business from fraudulent transactions and comply with the new regulations.