Two hundred days after the mandatory implementation of Strong Customer Authentication (SCA) in the UK, 73% of retailers report a decline in online payment fraud, according to data from Barclaycard Payments.
Since March 14th, all online transactions exceeding £25 have required two-factor authentication checks, representing the most significant change to UK payment regulations since the introduction of Chip & Pin in 2006. This measure aims to combat online fraud effectively.
Nearly three-quarters of retailers have experienced an average fraud reduction of around 25% since the rollout, with 63% of those operating an ecommerce channel noting a positive impact from SCA on their business.
Despite these improvements, 28% of businesses remain non-compliant with the regulation. Proprietary data from Barclaycard indicates that £2.07 million in sales are declined daily due to payments being processed through non-secure channels, resulting in failures of mandatory security checks.
Moreover, UK consumers appear receptive to two-factor authentication, as evidenced by a decline in ‘basket abandonment’ rates from 32.4% to 28.9% since the introduction of SCA.
Kirsty Morris, MD of specialist sales at Barclaycard Payments, commented, “While most businesses have adapted well to the new levels of security, it’s concerning that so many are still not fully compliant. Our data indicates that businesses risk losing millions in revenue by not upgrading their systems, making it crucial to ensure a safe and seamless shopping experience for customers.”