The larger enterprise merchants we work with are quite different than our emerging merchants, not only in terms of size but in how they deal with a lot of different situations. They are taking a much different approach when it comes to PSD2 SCA and more specifically, the exemptions within this mandate.
Whenever possible, these enterprise merchants want to avoid pushing their transactions through SCA. This means that they are trying to take advantage of these exemptions in any way possible.
Enterprise merchants deal with more volume than their emerging counterparts, meaning they likely think that SCA (and 3-D Secure) is something that will slow down the transaction process for their consumers.
They also recognize that transactions that go through Transaction Risk Analysis (TRA), one of the main SCA exemption categories, are more likely to be approved by the issuer, which will only benefit their consumers, and will keep things moving in a seamless fashion.
Since they deal with more consumers on a daily basis, and often have more direct competitors, these enterprise merchants are looking to use these exemptions in any way possible to expedite the transaction process.
While we recognize the reality that these enterprise merchants live in, the new, updated protocol, EMV® 3-D Secure (commonly known as 3-D Secure 2.0), can enable the fast, seamless use of SCA for digital transactions, meaning there won’t be as many concerns about friction during the transaction process.
You can expect more from this series in the next couple of days. For our enterprise merchants, does your strategy for dealing with exemptions line up with this approach?
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