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In the age of digital transactions and online activity, securing online payments and SCA compliance has become an increasingly important issue. The rise of online fraud and cyber-attacks has made it essential for businesses to adopt a secure and reliable solution to protect both their customers and their assets. That’s why the European Union introduced Strong Customer Authentication (SCA), a regulation that requires all online transactions to undergo two-factor authentication to ensure the safety and security of customer information.

What is SCA compliance?

SCA is a regulation introduced by the European Banking Authority (EBA) to enhance the security of online transactions by requiring customers to provide two-factor authentication. This means that, when making an online payment, a customer must provide something they know (such as a password), something they have (such as a mobile device), and something they are (such as a fingerprint).

Therefore, the EU’s Revised Directive on Payment Services (PSD2) mandates that payment gateways enhance security by incorporating multi-factor authentication, covering both physical and digital transactions, regardless of whether the card is present or not. This SCA directive was fully implemented on September 14, 2019, although some exceptions were granted to France, Italy, and Ireland.

The implementation of Strong Customer Authentication (SCA) helps to reduce instances of credit card fraud, including the use of stolen card information. Additionally, by verifying the identity of the customer, SCA eliminates certain instances of chargeback fraud. This results in fewer opportunities for fraudulent activities to take place and better protection for banks, merchants, payment processors, and consumers.

The extra step

However, SCA compliance also introduces an extra step for customers, causing a certain level of inconvenience in the transaction process. This is particularly concerning for ecommerce merchants as they are aware that excessive authentication requirements can lead to cart abandonment and result in customers choosing their competitors instead. According to American Express data, negative shopping experiences are more frequently shared with friends and family than positive ones, with a ratio of 15 to 11.

Therefore, it is important for merchants to strike a balance between meeting legal requirements, including SCA, and implementing effective fraud prevention methods, while also providing a user-friendly and seamless customer experience, especially in the online space. Is it possible to balance both of these practices?

Faceki can help

This is where Faceki comes in. Our liveness detection only requires a one-time selfie from the user, without any additional requirements for smiling or adjusting proximity. Our Know Your Customer (KYC) process is completed quickly, with results displayed on the dashboard in seconds. In addition, we offer a zero-integration option for user verification, which allows for the generation of links and the sending of individual or bulk SMS without the need for integration. This feature enables Faceki to provide a smooth and convenient KYC experience to consumers.

Faceki’s solution offers full KYC/AML identity verification that can operate 190+ countries and is able to identify thousands of government-issued document types. Our state-of-the-art ID verification and facial recognition technology provide accurate verification while also being user-friendly with fast verification and a simple interface.

The ease of use and high security of Faceki are our top priorities. All of our services are certified with ISO 30107-3 and have undergone independent attack, spoofing, and penetration tests to ensure that our customers can rely on solid and highly secure standards. Our services are also cloud-based and cross-platform, making it easier for organizations to provide biometric solutions to their customers without relying on different devices.

More added benefits

Faceki’s AI/ML powered solutions include biometric authentication and sign-in, biometric-based single-time digital access delegation, biometric-based digital KYC, biometric-based digital 2FA, and digital customer onboarding. These solutions ensure a smooth user experience across all devices and platforms, making it easier for organizations to unify their user experience.

Faceki provides a secure and reliable solution for businesses to comply with SCA regulation. Our commitment to ease of use, high security, and seamless integration across platforms and devices make us the ideal partner for businesses looking to enhance their online payment security.

Contact us today to learn more about how Faceki can help you comply with SCA and secure your online transactions.