Today, when consumers shop online, they often know what they want, and they don’t want any unnecessary forces disturbing that process. At the same time, they also want assurances that they can conduct online transactions in a safe and secure environment. While it’s difficult to effectively strike a balance between these two things, there are many steps being taken to optimize and secure this process.
Going forward, the most important piece of the puzzle will be rich, meaningful data. Previously, the issuers involved in the transaction weren’t equipped to make good risk decisions, due to a lack of worthwhile data from these digital transactions. Now, with EMV® 3-D Secure, merchants are sharing more data fields with issuers, empowering them to make risk decisions, in the background, that expedite the entire process for the consumer, while still maintaining a high level of security.
Additionally, in Europe, PSD2, an updated version of the original Payment Services Directive, is being put in place to accomplish similar goals. Strong Customer Authentication (SCA), one of the elements of PSD2, ensures that consumers will have to meet certain authentication requirements before completing a transaction.
Even after notable strides have been made to speed up the authentication process, this can still be a cumbersome endeavor for consumers. Within SCA, there are certain types of transactions that are exempt from strong authentication. This only occurs in unique situations, and it serves to expedite the transaction process. You can read more about SCA exemptions, what they mean and why they’re so important here.
In September 2019, the SCA element of PSD2 will go into effect and, as a result, merchants, acquirers and issuers who do business in certain countries will be subject to SCA and its various exemptions. One way to comply to this regulation is through the Cardinal Authentication Network. For years, Cardinal has been focused on creating an efficient and effective authentication environment that connects merchants and issuers. Over time, we have remained committed to innovation, which has allowed us to consistently deliver excellent results with the Cardinal Authentication Network, where we put Authentication First.