On March 14th a deadline passed from the FCA (Financial Conduct Authority) with Stronger Customer Authentication (SCA) measures for online retails and Payment Services Providers (PSP's).
What does this mean?
The aim is to protect consumers whilst minimising the potential of disruption to merchants and customers.
The new rules require online retailers and payment service providers to verify the customer is who they claim to be prior to processing the payment transaction.
The main focus is on 3D secure, a security protocol that verifies your identity through two factor authentication such as sending a code to your phone or mobile banking app.
What changes will you notice?
If you shop online, every time you checkout on a new website you should have to complete 3D secure verification before your order is confirmed.
Overall, these changes are just in place to enhance payment security and limit fraud.
One day settlements (we call it T+1) are soon to be the norm for all card processors. This is a change that will start with First Data in which all other card acquirers are likely to follow suit.
So, what does this mean for your business?
For more info, call our office on 01245 330720.