What is strong customer authentication?

To prevent fraud even more effectively, the EU introduced a new regulation, which requires companies to integrate even stricter authentication procedures in their payment processes. This regulation is known as ‘strong customer authentication’ (SCA) and is meant to supplement the PSD2.

The most important component of SCA is the two-factor authentication. The system uses two of the following security components.

Something the person knows:

password, PIN, or security answer

Something the person owns:

a mobile phone, hardware token, etc.

Something the person is:

biometrics such as fingerprint or face scan

Each of these elements must be independent of each other, so that the security of the others is not compromised in the event of a security breach. SCA as a whole must be designed logically in such a way that the confidentiality of the authentication data can be guaranteed at all times.

Exemptions from using SCA processes

According to the SCA regulation, some types of transactions are exempt from strong customer authentication. In certain exceptional cases, it is at the discretion of the merchants, issuers and acquirers whether SCA is required from the consumer or not.

With all exemptions, the respective authentication process remains invisible for the user: Transactions are carried out like transactions without 3D Secure, thereby guaranteeing a smooth customer experience.

Low-value transactions:

Transactions with low security risk or TRA exemptions

Subscriptions, corporate payments, or transactions based on a whitelist:

Transactions outside the scope of SCA:

*Merchant initiated transactions are payments that are initiated by you, the merchant (not your customer), relying on an agreement that you have in place with your customers allowing you to initiate payments on their behalf.
business, lady, woman

A smooth customer experience thanks to risk-based authentication (RBA)

Thanks to RBA, cart abandonment can be significantly reduced.

A process known as risk-based authentication can be applied to transactions of between €30 and €500 that have been classified as low-risk. Thanks to RBA, customers are spared additional authentication, and their experience is improved. If a transaction is classified as suspicious, customers can undergo additional authentication. The more transaction data is made available, the easier it is to assess the risks.

Benefits of RBA


Our Account Managers will support you in the process of integrating digital payments solutions to allow the best experience to your future customers.

    I confirm I have read the Privacy Policy*.

    According to the Data Protection Act 2018 UK, we inform you that your data will be processed by PayXpert LTD (“PayXpert”), with registration number 09647756. You can freely and voluntarily provide the information requested in the form except for the fields that appear as mandatory. The non-introduction of the information requested as mandatory may have the consequence that your request can not be addressed. This information has the purpose of managing your request and/or complaints raised before it for which you are giving your explicit consent. We inform you that you may exercise your rights of access, rectification, erasure, object, portability, restriction in processing and to be forgotten by contacting PayXpert at externalisation@dpo-consulting.com.

    Let's talk about payments!

    Scroll to Top