Use PSD2/SCA ready FireCheckout module to give the best pay off on your Magento 2 checkout page

Use PSD2/SCA ready FireCheckout module to give the best pay off on your Magento 2 checkout page.

For any business taking payments online from European citizens, today's post is regarded as very very valuable.

14 September 2019, Strong Customer Authentication (SCA), a regulation for authenticating online transactions, will be activated across Europe, as part of the Second Payment Services Directive (PSD2).

How might it affect your Magento 2 store? Would it bring an additional form of identification when completing payments in the checkout? We are gonna answer these questions in the article. Read it carefully.

Why do you have to follow the new PSD2 rules?

Following the latest European sets of rules, the websites which are operating within the European Economic Area, have to keep enforcing a customer protection and security requirements.

PSD2 is no exception. This directive is important and mandatory for the business that takes its website security and fraud prevention seriously.

It will affect any online transaction for companies doing e-commerce in Europe. You are simply required to complete new SCA requirements for payments suggested by PSD2 in case you want to provide a secure site for your customers.

New SCA requirements

In short, Strong Customer Authentication (SCA) is the additional security authentications for online transactions over €30.

Your customers will be required to verify their identity by two of the three following elements:

  • something only the user knows such as password or PIN
  • something the customer possesses such as credit card or mobile device
  • something that the user is, for instance, fingerprint or facial skin.

How does it look like on your website?

New SCA requirements include 3D Secure 2 authentication that looks like an extra form of identification during the checkout process. In other words, your customers will have to do a stronger identity check when making payments. We guess you see the additional step and think it may shift customer off.

In actual fact, it’s not as bad as it sounds. In essence, new regulations bring changes to make 3D Secure easier to use, plus create an additional layer of security. Building authentication into your checkout flow will help you to:

  • reduce fraud
  • provide low-risk transaction
  • provide a better user experience at last

Keep the payment experience smooth while staying SCA-ready

Good news is that there will also be the official exemptions to the SCA requirement which could be applied to only trigger 3D Secure when required.

Look at some of them, for example:

  • Not every payment will be subject to the new rules. Ecommerce transactions below €30 will be scanned “low value” and may be exempted from SCA.
  • SCA will be required for the customer’s first payment. Thus, when a customer makes a series of recurring payments for the same amount, to the same store, most likely the SCA will be avoided.
  • SCA is only required when both the cardholder’s issuing bank and the merchant’s acquirer are located in the European economic area.

What you must understand is the exemptions will be applied within solutions provided by every separate payment processors such as Stripe, PayPal, Braintree, Ebizmarts. Most popular payment providers are SCA compliant. That will allow you to take advantage of the 3DS 2.0 benefits and avoid possible frustration with completing payments.

Is Magento 2 FireCheckout extension SCA (3D Secure 2.0) ready?

Our Magento 2 one step checkout extension is PSD2 compliant. That means it works perfectly with third-party modules which offer 3D Secure 2.0 compatibility. FireCheckout is compatible with those trustworthy payment providers which are ready to maximize exemptions to SCA and reduce possible issues for SCA related transactions.

You can be certain your store offers a frictionless payment experience as well as smooth user experience on the checkout page.

With FireCheckout extension you avoid disruptions in online payments yet also continue to provide balancing security for your customers.

Are you ready to face SCA head-on? We guess that's a Yes. Drop us a line if you still have questions.

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