SECURITY: The objective of the European Banking Authority is to reduce the number of frauds on online payments by credit card
Starting in 2021, banks and merchants will no longer be able to offer SMS authentication for online payments . The European Banking Authority (EBA) has announced that it left until 31st December 2020 to set up a strong authentication system with a code or biometric data of customers, reports the site Les Echos. The goal is to reduce the number of frauds on online payments by credit card.
📤 #EBA Opinion sets deadline for 3⃣1⃣ December 2020 for the migration to #SCA under the revised #PSD2 for e-commerce card-based payment transactions. The Opinion prescribes the expected actions to be taken during the migration period. #consumerprotectionhttps://t.co/2SrIJIxjPF pic.twitter.com/fF0o9WcUJI
— EBA News 🇪🇺 (@EBA_News) October 16, 2019
Additional time was requested
Initially, this change of regulation was to take place on the 14th September 2019. But France and other countries concerned have asked for an additional 18 months. After negotiations, the EBA finally decided to impose this new timetable. “Some wanted 18 months and others were more 12 months or less, so the European regulator has cut the pear in half,” said the head of an association of online traders at Les Echos .
Once the deadline has passed, it will be necessary that all countries concerned have been able to apply this strong authentication at the risk of generating, if not, many failures of online payments.