Three-quarters of merchants report a drop in online payment fraud since the mandatory introduction of Strong Customer Authentication (SCA).
According to figures from Barclaycard, in the 200 days since SCA became mandatory, 73% of retailers have seen a drop in online payment fraud.
According to SCA rules, any online payment over €30 requires two methods of authentication from the person making the payment, such as a password, biometric authentication or a phone to identify them.
Payment processors must comply with SCA regulations, which are part of the European Union (EU) Payment Services Directive 2 (PSD2). The service was rolled out to all online purchases on March 14, 2022, after being delayed due to the Covid-19 disruption.
Retailers who have seen a reduction in online payment fraud report the average drop is around 25%, and two-thirds of retailers using e-commerce channels believe SCA has had a positive impact on their business .
Barclaycard has warned that retailers who are not yet SCA compliant, around 28 per cent, are missing out on sales as a result, with £2.07m in sales falling each day.
The research also looked at consumer satisfaction with the SCA regulation. He revealed that 80% are happy to spend more time at checkout if it helps protect their safety.
The number of consumers who abandon the point of sale after putting items in their online shopping cart has increased from 32.4% when SCA was introduced to 28.9%.
Barclaycard revealed that retailers who have not yet implemented SCA blame the lack of time and funds, but also found that most businesses expect to comply with the new rules within the next seven months.
Kirsty Morris, Managing Director of Specialist Sales at Barclaycard Payments, said: “It is reassuring to see how much of an impact the introduction of SCA has had in tackling levels of online fraud in the UK.
But she warned: “While most companies have adapted well to the new security levels, it remains a concern that so many are not yet fully compliant.”
“By deploying sophisticated fraud control solutions such as Barclaycard Transact, businesses can ensure that their e-commerce stores and customers are better protected against fraudsters, while reducing friction at checkout.”