Higher security standards for certain card payments have come into effect.
The changes are part of the ongoing rollout of Strong Customer Authentication (SCA) and relate to recurring card payments such as subscriptions where the cardholder’s details are retained for future use.
From today, service providers and online retailers must process these payments in line with new security standards, otherwise some customers’ card transactions will be declined.
Following the introduction of Strong Customer Authentication rules under EU law in 2021, banks and payment services providers have been transitioning customers to higher security standards and the next step in that process concerns recurring payments.
Banking & Payments Federation Ireland has issued advice to cardholders about what changes they can expect to see.
“In the coming weeks, you may receive notifications from merchants regarding transactions that are impacted. It is essential that you follow the instructions provided by your merchant to avoid any interruption and to ensure continuity of service,” said Gillian Byrne, Head of Payments at Banking & Payments Federation Ireland.
“We are advising cardholders who encounter any issues to contact their merchant directly for further information to resolve the issue as the payment agreement is between a cardholder and the merchant,” she added.
Article Source – Enhanced security for certain card payments introduced – RTE – Brian O’Donovan