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Three-quarters of retailers report a fall in online payment fraud since the mandatory introduction of Strong Customer Authentication (SCA).
According to Barclaycard figures, in the 200 days since SCA became mandatory, 73% of retailers have seen a decline in online payment fraud.
Under the SCA rules, any online payments of more than €30 require two methods of authentication from the person making the payment, such as a password, biometric authentication or having a phone that can identify them.
Payment processing companies must meet SCA regulations, which are part of the European Union’s (EU) Payment Services Directive 2 (PSD2). The service was rolled out across all online purchases on 14 March 2022, after being delayed due to the Covid-19 disruption.
Retailers that have seen a reduction in online payment fraud report that the average decline is around 25%, and two-thirds of retailers using e-commerce channels believe SCA has positively impacted their business.
Barclaycard warned that retailers that are not yet compliant with SCA, some 28%, are missing out on sales as a result, with £2.07m in sales being declined every day.
The research also looked at consumer satisfaction with the SCA regulation. It found that 80% are happy to spend extra time at the checkout if it helps protect their security.
The number of consumers that drop out at the point of sale after putting items in their online basket has decreased from 32.4% when SCA was first introduced to 28.9%.
Barclaycard revealed that retailers that have not yet implemented SCA blame insufficient time and funds, but also found that most businesses are planning to conform to the new rules within the next seven months.
Kirsty Morris, managing director of specialist sales at Barclaycard Payments, said: “It’s reassuring to see how impactful the introduction of SCA has been in combating the levels of online fraud in the UK.”
But she warned: “While most businesses have adapted well to the new levels of security, it does remain concerning that so many are still yet to become fully compliant.”
“By deploying sophisticated fraud checking solutions such as Barclaycard Transact, companies can ensure that both their ecommerce shops and their customers are better protected from fraudsters, while also reducing friction at the checkout.”