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3D Secure 2 - Next generation Authentication

Person using laptop computer holding credit card

From September 14th 2019 new payment regulations will come into force in Europe. As part of the revised Payment Services Directive (PSD2) regulations the Strong Customer Authentication (SCA) requirements mean that two-factor authentication must be performed on electronic payment transactions done by cards. Therefore for a transaction to be approved, merchants are required to collect and provide the card issuers with two of the following independent authentication factors:

  • Knowledge: Something they know (such as a password or PIN)
  • Possession: Something they have (such as a device or credit card)
  • Inherence: Something they are (such as a fingerprint or other biometric)

This will apply to all transactions in which both the merchant’s acquiring bank and the bank issuing the buyer’s debit or credit card are located within the European Economic Area (EEA). 

The affected countries include: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom (including Gibraltar, Guernsey, Jersey, and the Isle of Man).

Read more at your merchants site

Braintree PSD2