New data from Barclaycard Payments reveals that UK retailers have missed out on £130 million in sales due to non-compliance with the new Strong Customer Authentication (SCA) regulations that took effect last month.
In the most significant shift in payments regulation since the introduction of Chip & Pin in 2006, all online transactions over £25 are now required to undergo two-factor authentication checks as of March 14th, aiming to combat online fraud.
Barclaycard Payments, which processes £1 in every £3 spent on credit and debit cards in the UK, reports that more than 22,000 transactions daily, totaling £4.3 million, have been declined in the month since SCA became mandatory.
The data indicates that 37 percent of online businesses have not adopted any new payment technologies on their websites in the past two years. However, of those that have, 92 percent believe that their investments have enhanced the checkout experience for customers. These technologies not only help reduce SCA-related declines but also offer in-depth analysis of basket abandonment patterns.
According to Barclaycard Payments’ transaction data, 93 percent of transactions processed through the Barclaycard Transact platform were approved on the first attempt over the past month, compared to only 49 percent among less secure, non-SCA compliant channels.
Rob Cameron, CEO of Barclaycard Payments, stated: “One month after the introduction of mandatory SCA checks, it’s evident that many businesses remain non-compliant, resulting in substantial losses in sales. The message to retailers is clear: prioritize SCA compliance, streamline the customer journey, and leverage the latest payment technologies to avoid losing sales and customers.”