Over the past year, ecommerce has experienced impressive growth. The UK saw sales leap an astonishing 50% higher in August than in February, according to the Office for National Statistics. Meanwhile, the U.S. market ranked the second largest globally in 2020, with $469.3 billion in ecommerce sales revenue.
The COVID-19 outbreak significantly boosted the number of ecommerce users across the globe by 9.5% year-over-year to exceed 3.4 billion. Moving into 2021, this trend has only continued. Data from Finaria forecasts that the number of worldwide ecommerce users will reach approximately 4.9 billion by 2025.
That being said, you would think that most merchants would have switched to online payments rules by now, especially after the explosive growth brought on by the pandemic. But that has not been the case. There are many retailers, for example, that are struggling to balance the challenges of the past year.
From greater supply chain pressures to the need to upscale deliveries, moving more operations online has been demanding. And that’s not all. In addition to this ever-changing environment, even more significant changes are on the horizon. The ongoing rollout of Strong Customer Authentication (SCA) this year could cause issues for merchants that have yet to act and adapt.
What Merchants Need to Know About SCA
Essentially, SCA is a two-factor authentication process that adds an extra layer of security when cardholders make an electronic payment. It requires cardholders to provide not one, but two independent sources of identity verification in order for card issuers to approve a transaction. The aim is to bring additional security authentications for ecommerce transactions, adding yet another layer of fraud protection – which has become a huge problem during COVID – when consumers choose to shop online.
However, while the SCA came into law across the EEA and UK in September 2019, it’s only since January 1, 2021 that most regulators began to actually enforce the new regulation. Even so, there are many retailers that have yet to take the necessary steps to integrate SCA. The big problem is that if they don’t act soon, they risk payment processors declining transactions. Ultimately, they risk experiencing a loss in revenue.
How to Create a Seamless Checkout Experience
For the retailers busy trying to implement a secure, seamless SCA solution, here are a few steps that will help you get started:
- Use industry standards – Make sure you consider EMV 3-D Secure (3DS). This technology was designed as the global industry standard to help retailers to undertake SCA integration for all major networks, ultimately saving time and resources.
- Focus on data – One of the most effective ways to streamline the process is to incorporate and maximize data insights.
- Be a ‘trusted’ retailer – Cardholders have the ability to select a retailer as a ‘trusted’ option, which exempts from the SCA requirements. Thus, creating a more seamless customer experience.
Merchants are being encouraged to be proactive and take the steps necessary to comply with SCA. Creating both a seamless experience for customers and improving the security measures against ever-growing fraud threats.
Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.
