In 2019, new rules on how banks or payment services providers verify customers’ identities or validate payment instructions were introduced to further enhance the security of payments and limit fraud. These changers are known as Strong Customer Authentication (SCA).
In its update the FCA confirms that, for online banking, the SCA changes were expected to be completed by 14 March 2020.
For online shopping, the e-commerce industry – including card issuers, payments firms and online retailers – has until March 2021 to implement SCA.
The FCA says it is working with firms to implement SCA in a way that protects consumers while minimising disruption. It also wants to ensure that authentication methods are available for all groups of consumers.
Banks or payment services providers should keep customers up to date if they are planning any changes to their authentication process. Such changes could affect how customers access their account online or when making payments.
The update also mentions that there may be changes to the way customers authenticate themselves when shopping online. Card issuers should keep customers up to date about any planned changes.