UK FB PSD Authentication Delay

On Aug. 13, UK FB issued statement re FCA plans to delay SCA.

  • UK finance responded to FCA strong customer authentication implementation plan.
  • Follows FCA Aug. 2019 agreed plan re strong customer authentication, see #63825.
  • Overview
  • Fighting fraud must be a priority for everyone so the new rules are important tool to protect customers, FCA plan supports UK FB proposals for managed/phased rollout.
  • Will ensure timely migration, achieve best outcomes for consumers including security.
  • UK FB is working with its members to prepare for these changes and ensure clear communication to customers and retailers, it published consumer Q&A leaflet on SCA.
  • It expects providers will have appropriate solutions in place for customers self- authentication, e.g. bank/provider text message, call, banking app, or card reader.
  • Via smartphone, this could be done by fingerprint or voice recognition technology.
  • Some firms already adopting changes, consumers may have found extra step/s when shopping online, other methods developed in place already, e.g. biometric technology.
  • Alternatives
  • Encouraged anyone concerned about ability to verify online payments to speak with bank/provider, ensure contact details are up to date and discuss available alternatives.
  • Payment providers are aware of limitations of some verification forms, e.g. poor sight or no mobile phone, hence, UK FB expects providers will provide appropriate solutions.

Regulators UK FB
Entity Types Bank; BS; Corp; MSB
Reference PR, 8/13/2019; FAQ, 5/29/2019
Functions Complaints; Compliance; Financial; Legal; Operations; Privacy; Product; Risk; Settlement; Technology; Treasury
Countries United Kingdom
Products Banking; Cards; Corporate; Deposits; Payments
Regions EMEA
Rule Type Guidance
Rule Date 8/13/2019
Effective Date 8/13/2019
Rule Id 63847
Linked to Rule :63825
Report Issue 8/15/2019
Report Section UK

Last substantive update on 08/14/2019