A Look At Strong Customer Authentication And How It Can Be Useful To Your Business

 

When it comes to the things to that you can do in order to make sure that your business or company is secure, one of the things that you should definitely consider is Strong Customer Authentication (SCA). Contrary to what some people think, strong authentication is not simply a compliance exercise, but it can also be a driver for innovation. Authentication refers to the process of proving who a person is and confirming their intention to perform an action, such as allowing access to account information or making a payment transfer electronically.

So, exactly what constitutes SCA and why it is so hard to deliver? This authentication technique requires two factor authentication as well as dynamic linking to ensure the consumer is fully informed and makes an active decision to authorize a payment transaction. In other words, to successfully process a payment under the new rules, banks and financial service firms needs to ask customers for at least two authentication factors. For example, a PIN or password entered on their mobile device would constitute two factors, namely knowledge and possession.

Even though the Payment Services Directive 2 (PSD2) that SCA is linked to opened many business opportunities, the adoption of SCA has been slower than the European authorities would have preferred. This is because implementing Strong Customer Authentication requires well-designed user experience to minimize friction, and striking the balance between SCA and UX has proven to be a challenge to some organizations. However, there exist exceptions where Strong Customer Authentication is not required, in particular for regular subscriptions and transaction values less than EUR30.

For more information on Strong Customer Authentication and how it can be useful to your business, visit our website at https://loginid.io/

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