SCA Definition.

Strong Customer Authentication: the strong authentication required by PSD2, based on at least two independent factors from among knowledge (a PIN or password), possession (a phone, a card), and inherence (biometrics). It applies to electronic payments initiated by the payer, with defined exemptions: low-value payments (up to €30), transaction risk analysis (TRA), and trusted beneficiaries; MITs are out of scope. Its full rollout in France in 2021 sharply reduced authenticated e-commerce fraud, at the cost of friction the industry has been working to reduce ever since.

See also

→ 3-D Secure→ TRA→ Dynamic linking

Where this term appears

GuidePayment regulationGuidePayments in GermanyGuidePayments in AustriaGuidePayments in the BalkansGuidePayments in the Baltics and FinlandGuidePayments in the Netherlands and BelgiumGuideWhat a payment service provider must reportGuideWhen no authorization is required: exclusions from the scope of payment servicesGuideManaging SCA exemptions: fraud rates, audits, and losing the exemptionGuidePayments in FranceGuidePayments in Greece, Cyprus, and MaltaGuidePayments in Hungary, Czechia, and Slovakia

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