Since the mandatory introduction of Strong Customer Authentication (SCA) in the UK, 73% of retailers have seen online payment card fraud decline: Barclaycard
SCA facilitated online card fraud decline. Source:?shutterstock.com
Barclaycard has analysed merchant data over 200 days since the mandatory introduction of SCA in the UK. The research revealed that 73% of retailers saw online payment fraud decline, while 28% of merchants that aren’t fully compliant lose over ￡2 million in sales daily.?
SCA has become the biggest change to UK payments regulation since 2006. It made all online transactions over ￡25 subject to two-factor authentication checks since 14th March.
The aim of the legislation is to combat online fraud. Nearly three-quarters of retailers have actually witnessed around a 25% drop in fraud since the rollout. As a result, 63% of e-commerce channel owners believe SCA has positively impacted their business.?
At the same time, the study shows that 28% of businesses are still not fully compliant with SCA. According to Barclaycard transaction data, ￡2.07 million in sales is being declined every day. The reason is that payments are routed through non-secure channels, failing mandatory security checks.?
Moreover, 80% of the Brits are happy to spend extra time at the checkout as it helps protect their security. Therefore, two-factor authentication didn’t slow the sales. In fact, there has been a drop in ‘basket abandonment’ from 32.4% to 28.9% since SCA was introduced.
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UK tops card fraud rating in Europe
Nina Bobro
Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.
