/regulation & compliance

News and resources on regulation, compliance, legal and governance issues for banks and fintechs.

Pressure grows on EBA to amend SCA timetable

Payments Europe, an industry association representing the views of card issuers and card acquirers, has joined the growing calls for a delay to the introduction of strong customer authentication (SCA) rules and for a harmonised approach across national markets.

  9 1 comment

Pressure grows on EBA to amend SCA timetable

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In a position paper setting out its views, the body urges the European Banking Authority to take note of the Covid-19 crisis and extend the December 2020 deadline for introduction of the new rules, which require a two-step verification process for all online purchases over EUR30.

States the paper: "Taking the circumstances into account, we join other industry groups in inviting the EBA and NCAs to give the industry and businesses more time to the adopt Strong Customer Authentication requirements, beyond the current 31 December 2020 for implementation."

Pointing to the recent decision of the UK's Financial Conduct Authority to push the timetable back to Setpember 2021, Payments Europe stresses the need for a harmonised approach across national markets.

"A non harmonised approach, where the dates are not aligned between European countries, may result in transactions being declined," the group points out.

Payments Europe's intervention follows similar calls from lobby groups representing European payment providers and merchants.

Sponsored [On-Demand Webinar] Unifying Card Programmes: The cost-reduction imperative

Comments: (1)

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

A month ago, I predicted in response to this Finextra article that regulators could use Covid-19 crisis as the fall guy to defer / cancel SCA mandates. UK regulator already took the cue. I'm quite sure many others will follow.

[New Impact Study] Catering to a new generation though unified card programmesFinextra Promoted[New Impact Study] Catering to a new generation though unified card programmes