Online Payment Changes - 14th? SCA / 3D Secure etc

[vdn]

I have a store running on BigCommerce platform. I had an email back in June stating 'ACTION REQUIRED':

As part of the second Payment Services Directive (PSD2) or Strong Customer Authentication (SCA), new requirements for authenticating online payments take effect in Europe on September 14, 2019. This upcoming regulation will impact all businesses that process European transactions, as well as platforms that enable payments from Europe.

What is Strong Customer Authentication? Strong Customer Authentication (SCA) is a new European regulatory requirement designed to reduce fraudulent transactions by adding an additional layer of security for online payments. In order to continue accepting online payments in Europe, your business will be required to enable 3D Secure, or Two-Factor Authentication, at checkout before SCA goes into effect.

Benefits of using 3D Secure authentication? Improved user experience. 3D Secure 2, the latest authentication standard meeting new SCA requirements, offers an improved user experience that reduces some of the friction associated with authentication in the checkout flow.

Protection against fraudulent transactions. Businesses are not liable for fraudulent chargebacks or transactions authenticated with 3D Secure. Save money with pre-negotiated payment rates. BigCommerce offers pre-negotiated payment rates for PayPal powered by Braintree, allowing merchants to save money with an SCA-compliant payment gateway.

Payment Rate? What happens if I don’t comply before September 14, 2019? Starting September 14, 2019, transactions may be declined by European credit card issuers if they do not meet SCA requirements. That means you will not be able to accept payments from all countries in the EU that require the SCA protocol.

Next steps? Switch to a payment gateway that supports 3DS. Our integration with PayPal powered by Braintree is compliant and easily enabled from the control panel. If you choose this gateway, follow these instructions to enable the 3D Secure feature. Beyond additional security, a comScore study shows PayPal to have a significant impact on conversion rates.

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Now, we already accept PayPal - checkout route offsite to PayPal and also onsite checkout - where customers never leave our site / and enter all of thier details on our site, currently via 'PayPal Website Payment Pro'.

Apparently it's the PayPal Website Payments Pro that's the issue. The only thing is - I've not heard about any of this other than via the BigCommerce email. Is this really necessary (to change our site checkout method)?

Any help appreciated!

Edited by vdn on Monday 9th September 13:36

[MrSparks]

It's a pretty big thing and is affecting all payment providers.

Shopify is automatically updating with no action required, our Magento store needs updating I think as the module itself has to change to comply.

I think it's a great thing though, we've been hit with quite a bit of fraud, we're really good at spotting it now but it's just an added layer of stress worrying about it, if SCA works to prevent this even more then it's a thumbs up from me.

I'd imagine it'll be a quite easy fix with BigCommerce?

Sorry I can't be of any more help, just wanted to chime in to say it'll be worth the aggro. Hopefully!

[vdn]

Thanks; so it is genuine. BC have said there's nothing to do with regard the site itself; just that one of our chosen payment solutions won't be compliant...

Ideally, I didn't want to go messing around if I didn't have to but it seems it's a must!

[DSLiverpool]

Sparky has it right, it’s a pain and you should ask PayPal if a update is imminent but I don’t think they can as too many variables.
We’ve got a webinar with Shopify this week to go over it all but it seems Shopify have seen this as a way to boost the platform and have made it seem less. (Helps us with Mag 1.9 conversion pitches).

[jammy-git]

As I understand it, as long as you have 3D Secure already enabled then you should be fine?

[vdn]

jammy-git said:

As I understand it, as long as you have 3D Secure already enabled then you should be fine?

We don’t and so I know it’s worth doing anyway.

Spoke to PayPal and they said the 14th September deadline is no more, as 18 month extension has been granted to allow time. As usual, there’s never a clear answer but I think they’re right.

[The Moose]

Use it as an opportunity to reassess whether PayPal is your best option both in terms of service provided and fees charged.

I have looked at a number of sites over the years that use PayPal almost exactly as you describe, and pretty much without exception, moving away has been the best decision financially.