Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » Consumers likely to face payments problems after European Banking Authority decision on customer authorisation

    Consumers likely to face payments problems after European Banking Authority decision on customer authorisation

    npsBy nps23 June 2020Updated:2 July 2024 No Comments2 Mins Read
    — Filed under: Focus
    Share
    Facebook Twitter LinkedIn Pinterest Email
    — last modified 23 June 2020

    Speaking today, EuroCommerce Director-General warned of the consequences of the decision by the European Banking Authority (EBA) and Commission to maintain mandatory Strong Customer Authentication (SCA) by December 2020:


    Advertisement


    “The recent decision not to allow any further extension of the deadline for the mandatory introduction of SCA may mean a lot of customers finding their transactions declined and merchants losing the sale. We appreciate that the Commission and the EBA had already extended the initial deadline. But, because of the COVID crisis, many merchants, particularly small-and-medium-sized enterprises have not had the time to install and thoroughly test all the systems needed to ensure SCA will work smoothly by the December deadline.  At a time when our sector and others such as hospitality and travel have been badly hit by the economic consequences of the crisis, and many organisations facing bankruptcy, this decision goes in the opposite direction to the Commission’s very welcome efforts to encourage consumption and aid the EU’s recovery.”

    At present, only 20% of online transactions go through with SCA. To move towards 100% without any glitches in the next six months is quite a challenge. CMSPI, an independent global payments consultancy group, estimates that this decision could cost merchants ?90 billion in lost sales if mandatory SCA is launched without being optimised. This risk is very real,  and the UK Financial Conduct Authority has recognised this and extended the deadline to September 2021.

    Retailers remain committed to delivering the right solutions for the EU economy and share the priority of all players of tackling fraudulent transactions.

    Most retailers will need to have SCA thoroughly tested and successfully deployed by mid-October in advance of any system freezes and the start of peak trading over the Christmas period, upon which, given the massive impact of the COVID crisis, their future survival may depend.

    Many merchants have been actively testing the systems needed to allow for SCA, and are still encountering a large number of problems resulting in very high abandonment rates of e-commerce transactions where these should have gone through without difficulty. The COVID crisis has diverted management attention away from resolving these problems , and presents real challenges to our sector and travel & hospitality, the two ecosystems identified by the Commission as worst hit by the crisis.

    EuroCommerce

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Sustainable finance - Image by Nattanan Kanchanaprat from Pixabay

    Brussels eases corporate sustainability reporting requirements

    Tochytskyi - Micallef - Ukraine Recovery Conference - Photo © European Union 2025

    EU offers support for Ukraine culture and heritage

    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Poor GDP performance marks end of tough week for the Pound – Euro currency news daily

    Ukraine Recovery Conference - Photo © European Union 2025

    EU announces EUR 2.3 billion package for Ukraine recovery

    Ecommerce - Photo by AS Photography on Pexels

    Euro-Parliament moves to stop sub-standard products from outside EU

    Deforestation - Image by Robert Jones from Pixabay

    EUDR saga: Parliament votes to undermine enforcement and EU credibility

    Sponsor: WWF European Policy Office9 July 2025
    LATEST EU NEWS
    Sustainable finance - Image by Nattanan Kanchanaprat from Pixabay

    Brussels eases corporate sustainability reporting requirements

    11 July 2025
    Tochytskyi - Micallef - Ukraine Recovery Conference - Photo © European Union 2025

    EU offers support for Ukraine culture and heritage

    11 July 2025
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Poor GDP performance marks end of tough week for the Pound – Euro currency news daily

    11 July 2025
    Ukraine Recovery Conference - Photo © European Union 2025

    EU announces EUR 2.3 billion package for Ukraine recovery

    10 July 2025
    Ecommerce - Photo by AS Photography on Pexels

    Euro-Parliament moves to stop sub-standard products from outside EU

    10 July 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?