UK e-commerce authentication rules to start March 14

0

After more than a year of delay, stricter know-your-customer (KYC) e-commerce rules are due to come into force in the UK on March 14.

The Financial Conduct Authority (FCA), the UK’s financial regulator, has proposed Strong Customer Authentication (SCA) measures in 2019. These were due to be implemented last year but were delayed to give retailers more time to prepare.

“We support and welcome the implementation of SCA solutions that protect consumers while minimizing the potential for disruption to customers and merchants,” the FCA said in a statement.

E-commerce shoppers should be prepared to have their identities verified and possibly receive more disapprovals of credit card transactions, the FCA said.

The new rules require online retailers and payment service providers (PSPs) to verify that the customer is who they claim to be before processing the payment transaction..

The focus of the implementation was on 3DSecure, a technology designed to facilitate the authentication of cardless transactions (CNP), according to UK Finance, a trading group for the bank andfinanceindustry. But other SCA solutions are also available on the market, such as Apple Pay or Google Pay.

The new rules aim to strengthen payment security and limit fraud during this authentication process. They apply when a payer initiates an electronic payment transaction, accesses his online payment account or performs any action that may involve a risk of payment fraud, the statement said.

“We expect companies to continue to take aggressive action to reduce the risk of fraud,” the FCA said in the announcement.

Last year, CAF collected $775 million in fines thanks to an increase in pandemic-fueled financial crime.

Read more: Britain’s FCA imposed $775m in fines in 2021

The total included fines against major banks, as well as levies against people for insider trading, non-financial misconduct and conducting regulated activities without authorization.

——————————

NEW PYMNTS DATA: 70% OF BNPL USERS USE BANK PAYMENT OPTIONS, IF AVAILABLE

On: Seventy percent of BNPL users say they would prefer to use the installment plans offered by their banks – if only they were made available. PYMNTS’ Banking On Buy Now, Pay Later: Installment Payments and the Untapped Opportunity of FIssurveyed over 2,200 US consumers to better understand how consumers view banks as BNPL providers in a sea of ​​BNPL pure-players.

Share.

Comments are closed.