The EU Payment Service Directive 2 (PSD2) is a European Commission initiative to increase consumer security and protection for European payment processing. The PSD2 mandate requires all electronic payments within the European Economic Area (EEA) to have Strong Customer Authentication (SCA).
This was planned to be effective from September 2021 in the UK. However, the European Banking Authority (EBA) extended the UK enforcement until 14 March 2022.
This 6-month extension ensures minimal disruption to Merchants and consumers and recognises the industry’s ongoing challenges to be ready by the previous 14 September 2021 deadline. For more information, see the recent FCA statement.
As the rollout of Strong Customer Authentication (SCA) across the European Economic Area (EEA) and the UK continues, Merchants are likely to encounter more soft declines for transactions without SCA. For this reason, we recommend the Merchants ensure they are using 3DSv1 as a minimum to reduce the number of soft declines they receive.
Cardstream’s plans will not change as we continue to stay focused on supporting SCA and 3DSv2 across all Acquirers before the original deadline of September 2021. We will keep you informed and let you know when Acquirers are ready, and Merchants can process 3DSv2 transactions.