NOVEMBER 11 2019
Tags: cashless

EBA extends SCA deadline to 31 December 2020

Strong Customer Authentication, or SCA as it is commonly referred to, is an important and far-reaching mandate aimed at stepping up security during e-commerce payment transactions, taking into account the new and evolving scenarios introduced under PDS2 and Open Banking.

However, in light of the challenges that have arisen during preparations for migration to SCA, namely a fragmentation across Europe in terms of readiness, agreed standards and deadlines, something we wrote about here,the European Banking Authority (EBA) recently took the decision to push back the deadline by 15 months, setting a new date of 31 December 2020.   

In the Opinion paper published on 16th October 2019, the EBA requested that the National Competent Authorities (NCAs) take a “consistent approach toward the SCA migration period” across the European Union, and that they ensure that their respective PSPs carry out the actions set out in the paper.

This move will give NCAs sufficient time to implement new rules that include approving extensions for businesses on an exceptional basis, and ensuring that PSPs (both issuers and acquirers) are able to carry out the necessary activities to ensure readiness and comply with the SCA mandate.

Initially scheduled for introduction on 14 September, the postponement demonstrates that EBA has acknowledged the potential for a significant impact on PSPs, TPPs and consumers alike.

EBA recommends that NCAs inform PSPs in their jurisdiction that the supervisory flexibility does not represent a delay in the application date of the SCA requirements under PSD2 and the EBA’s Technical Standards (RTS). However, rather than pursuing immediate enforcement actions against PSPs that fail to comply with the SCA requirements, NCAs are urged instead to focus on monitoring migration plans. 

This move has been warmly welcomed by the majority of PSPs, many of whom were struggling to implement the new rules or concerned about the lack of uniformity, which risked undermining the goal of having one single and competitive EU payments market. By December 2020 it seems that a level playing field is finally in sight.


 To learn how TAS Group can help you to intelligently manage SCA with our 3D Secure 2.0 solution, and to use Machine Learning to apply TRA-based SCA exemptions, get in touch.