PSD2’s strong authentication doesn’t end fraud risk for merchants

Many merchants may have thought that the Strong Customer Authentication elements of the European Payment Services Directive 2 (PSD2) would mean that fraud liability would be shifted away from their responsibility. With a deeper understanding of the regulation, there is a realization that there are still many things which should be considered when managing online fraud attacks.
The deadline for implementation of PSD2 into EU national laws was Jan. 13. One aspect of PDS2 is Strong Customer Authentication, or SCA, whereby a customer needs to authenticate themselves in order to be able to transact. Authentication in itself can cause friction, which is something any merchant is trying to avoid to ensure that they are able to maximize revenues and customer satisfaction on their consumer websites and apps. Read more…