On August 13th, the Financial Conduct Authority (FCA) has agreed a plan that gives the e-commerce and the payments industry more time to implement Strong Customer Authentication (SCA).
Strong Customer Authentication started on 14th September, which impacts the way in which banks or payment service providers verify their customers. This new rule is expected to enhance the security of payments and limit the incidents of fraud during this authentication process.
This rule has been agreed by FCA to be an 18-month plan which will be used with the e-commerce industry of card issuers, online retailers and payment firms.
The Executive Director for Supervision, Jonathan Davidson, said:
‘The Financial Conduct Authority has been working with the industry to put in place stronger ways of ensuring that anyone making a payment isn’t a fraudster.’ Mr. Davidson also went on to say that the FCA want to make sure this won’t cause material disruption to the consumer and so, they have agreed to an 18-month plan introduction.
The FCA will not take enforcement action against firms if they don’t meet the relevant requirements from the 14th September. However, at the end of the 18-month period, the FCA does expect all firms to have made necessary changes and undertaken the required testing.
The Financial Conduct Authority will continue to monitor the extend to which banks and payment service providers are meeting requirements that they consider the impact on SCA.
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