Payments Blog

We've Got PSD2 SCA News!

Hello everybody, it’s good to be back! I hope all of you didn’t miss me too much, but since we last spoke there have been some major developments in our industry – developments that affect the entire digital payments landscape.

Amazing Flag of European Union-1

On August 22, the European Banking Authority (EBA) issued an announcement and acknowledged that local competent authorities could offer a transition period, if necessary, to get ready for SCA compliance with PSD2 in the European Economic Area (EEA). The original date – September 14 – is not delayed per-se, as this is a law that was passed by regulators. However, this gives local authorities the ability to propose and submit plans that will lead to compliance over a period of time. But these plan submissions need approval. Visa and Mastercard came together and issued a joint statement urging the EBA to enforce a uniform date across the entire EEA, indicating that a harmonized approach will have a greater long-term positive effect on the entire industry. We will hopefully have some more clarity from the EBA in the next couple weeks.

In the meantime, countries are tackling this issue on an individual level, reinforcing the lack of a new uniform compliance date. So far, 10 countries have submitted planning criteria to the EBA, a list that includes the United Kingdom, Italy, Ireland and others. The UK’s Financial Conduct Authority (FCA) agreed to delay enforcement of PSD2 SCA compliance by 18 months (until March 2021) after reflecting on the complexity of the requirements in the RTS, the lack of preparedness and the potential impact on the consumers.

We need to give the ecosystem time to migrate to EMV® 3-D Secure Version 2.1 and 2.2. By giving wider access to the newest, latest 3DS technology available in the market, we will begin to see more providers who are able to support exemptions, new solutions such as trusted listings and the latest authentication technology that meets SCA requirements.

We’ve been bringing merchants, issuers and consumers together in an experience where everybody wins for more than two decades. This is an exciting new era for 3DS, and our teams have been working hard to deliver the greatest authentication network in the world. We realize how much PSD2 SCA compliance can complicate things for you. Let us help you rest easy with our suite of solutions. They can get you where you need to be!

Finally, I recognize there’s a lot to digest here, especially in one sitting. In the next few weeks, we’ll dive in deeper on the actual enforcement delay and some of the specifics surrounding it before looking at the overarching effect it will have on merchants, issuers, service providers and others in our field. This is undoubtedly one of the biggest developing stories in our world, and we will ensure that all of you have the latest, and most relevant, information. Stay tuned!

Posted by Tim Sherwin

Tim Sherwin is the co-founder and Chief Executive Officer at CardinalCommerce. Under Tim’s leadership, Cardinal has become the leader in enabling authenticated payment transactions in digital commerce markets. Most recently, Tim led Cardinal’s business development and product strategy efforts. He oversees Cardinal’s largest Customers and key partners including Visa, Mastercard, PayPal and American Express. Working in the payments industry, Tim has had a lead role in redefining the Consumer Authentication landscape, developing innovative payment services that help merchants increase sales, reduce fraud, and eliminate chargeback exposure without disrupting the consumer checkout experience. Tim has more than 20 issued and pending patents related to secure payment processing, mobile payments and tokenization. Prior to founding Cardinal, Tim was Senior Vice President of Business Development at QIS, an IT and internet services firm. Earlier, he was with STERIS Corporation as Controller of the North American Division, and spent time with Oracle Corporation working with Invacare Corporation, where he developed a sound and streamlined system for processing all financial transactions. Tim is a graduate of Wittenberg University with a BA in Business, and earned his MBA in finance from Case Western Reserve University’s Weatherhead School of Management. Tim serves as a member of the Merchant Risk Council (MRC) Americas Advisory Board, is a member of EMVCo, and is a frequent speaker at industry events. He is also on the board of the Cleveland Museum of Natural History.

Topics: PSD2, SCA, EMV 3-D Secure, 3-D Secure

Recent Posts


see all

Subscribe to our Blog