ecommerce
Europe Fintech Paytech Regtech

Retailers Must Prioritise SCA Compliance Or Miss Out On Sales, Warns Barclaycard

Failing to comply with the new Strong Customer Authentication (SCA) rules, regarded as the biggest change to payments regulation since the roll out of Chip & Pin in 2006, is hitting retailers hard.

Data from Barclaycard Payments shows 664,000 online transactions worth £130million in the UK were declined during the month since SCA became mandatory. That means retailers are losing out on 22,000 transactions a day, worth £4.3million in sales, as new SCA rules block non-compliant online transactions.

Barclaycard research also shows two in five online businesses have not introduced any new payments technology to their website in the last two years.

All online transactions over £25 have been subject to SCA checks since 14 March, to help combat the £376million of online fraud committed in the UK each year.

SCA adds a security check to all qualifying online transactions, prompting the cardholder to verify their identity through a one-time passcode sent by SMS, a response code generated from a bank-issued card reader or through approval via their mobile banking app. Cardholders then enter this code into the business’ SCA compliant checkout to complete the purchase.

Rob Cameron, CEO of Barclaycard Payments, said: “One month on from the introduction of mandatory SCA checks, it’s clear that too many businesses are still not compliant and are losing out on millions of pounds in sales as a result. Our research shows that adopting new payments technologies can help businesses reduce basket abandonment while offering customers a faster, more secure check-out experience.

“The message to retailers is clear; prioritise SCA compliance, simplify the customer journey and take advantage of the latest payments technologies to avoid losing out on sales and customers.”

Barclaycard Payments offers Barclaycard Transact, which can be added to existing payment gateways, enabling e-tailers to reduce the risk of abandoned baskets, while also keeping consumers secure when shopping online. The company is also hosting regular webinars on SCA, focusing on the steps businesses can take to protect their online revenue streams.

Author

Related posts

Finitive Launches Alternative Lending Investment Platform With $1.3 Billion Of Initial Transaction Volume

Manisha Patel

54% Of UK Residents Are Not Investing for the Future; Minted Survey Finds

Tyler Pathe

Crouching Tiger, Hidden Dragon – The Classic Battle Being Fought in Asia’s e-Commerce Market

Mark Walker