ACI Worldwide Readies European Payments Businesses for Strong Customer Authentication
New European PSD2 requirements significantly impact how European consumers and businesses buy and sell online—ACI’s UP solutions with real-time, multi-layered capabilities help businesses to lower fraud rates while providing a frictionless checkout experience
Under the new PSD2 regulations, all electronic online transactions in the European Economic Area (EEA) will require SCA, designed to tackle card fraud and protect the confidentiality of payment security credentials for consumers when purchasing goods and services online. From
This new requirement puts the ultimate decision to authorize a transaction with the issuer, which can force additional authentication protocols – like 3D Secure 2.0 – that would impact customer experience during card-not-present checkout. However, under the new rules, exemptions from SCA are allowed for those that can keep their fraud levels under specified reference fraud rates; this allows payments under certain thresholds to be exempted when transaction risk analysis has been applied.
“The new SCA mandate has major implications for acquirers and merchants, and with the original deadline for the new rules quickly approaching, many are scrambling to manage and stay ahead of SCA,” said
ACI recently launched a Merchant Guide for PSD2 and Strong Customer Authentication to help PSPs, acquirers, issuers and merchants navigate the regulations. The guide, which is based on ACI’s extensive expertise, provides insights into how these organizations can protect their customers as well as their own reputations and businesses. ACI has several additional tools, resources and solutions including:
ACI Proactive Risk Manager
In order to comply with PSD2 and strengthen fraud protection, many financial institutions utilize the latest version of ACI’s Proactive Risk Manager, which offers real-time prevention and detection capabilities. Proactive Risk Manager can integrate with Issuers’ Access Control Servers and PSPs’ and Acquirers’ Payment Gateways to deliver SCA and exemptions in real time. Centralizing authentication and authorization messages results in a best-in-class solution along with the ability to create bespoke AI adaptive machine learning tactical models for TRA scoring.
ACI Red Shield
To qualify for SCA exemptions, merchants and the PSPs that support them need to maintain low fraud rates. ACI ReD Shield is a powerful real-time, multi-layered fraud prevention solution that provides the means to address and minimize risk in the authentication process, while at the same time protect merchants’ genuine customers, enhance brand reputation and maximize conversion.
Product roadmaps are for informational purposes only and may not be incorporated into a contract or agreement. The development release and timing of future product releases remains at ACI’s sole discretion. ACI is providing the following information in accordance with ACI's standard product communication policies. Any resulting features, functionality, and enhancements or timing of release of such features, functionality, and enhancements are at the sole discretion of ACI and may be modified without notice. All product roadmap or other similar information does not represent a commitment to deliver any material, code, or functionality, and should not be relied upon in making a purchasing decision.