Important update for your Shopping App: SCA payment
Written by Marie Pireddu on Wednesday, November 25th 2020
On December 31, 2020, the new security requirements imposed on banks and payment processors by the Payment Services Directive 2 (PSD2) will be taking effect in the European Economic Area (EEA) countries. The European standard called SCA (Strong Customer Authentication) comes out, which is version 2 of the payment by 3D Secure.
GoodBarber has taken all the necessary steps to comply with the new standard and SCA has been implemented in our Shopping Apps.
All you need to do on your side is to rebuild your app to benefit from this update and submit the new version to the Stores.
Let's find out in more detail, what SCA is all about and what it means for your app.
What are SCA and 3D secure?
Strong Customer Authentication (SCA) (as stated by Stripe) is a new European regulatory requirement to reduce fraud and make online payments more secure. In general, it means that to accept payments and meet SCA requirements, you need to build additional authentication into your checkout flow. But no worries, GoodBarber has already taken care of this and made all the necessary adjustments to integrate the Strong Customer Authentication in the apps' checkout flow.
What are the additional authentication steps?
SCA requires authentication to use at least two of the following three elements:
Something the customer knows: password, pin
Something the customer has: phone or hardware token
Something the customer is: fingerprint, face recognition
3D secure: For extra fraud protection, 3D Secure requires customers to complete an additional verification step with the card issuer when paying. Usually, redirection to an authentication page on their bank’s website, and they enter a password associated with the card or a code sent to their phone. You might be familiar with this process if you use Visa Secure and Mastercard Identity Check.
You are impacted if:
Your business is based in the European Economic Area (EEA) or you create payments on behalf of connected accounts based in the EEA
You serve customers in the EEA
You installed Stripe and accept cards (credit or debit)
What does this mean for your GoodBarber Shopping App
With the publication of the management of this SCA payment, your clients will be able to pay in a more secure way.
But what does this mean for you and your clients exactly?
- You must rebuild your app
Once this is implemented, if you’re using Stripe for your Shopping App, you will absolutely have to recompile your Android App, iOS app, and PWA in order to benefit from the upgrade to SCA. You must do this before the end of the year (December 31, 2020) so that your shopping app continues to receive card payments.
Be aware that if you fail to rebuild your app by December 31, 2020, you will no longer be able to accept card payments.
We're here to help so a banner in your app back office will remind you to do so ;)
2. Submit the new version to the Stores
For your iOS and Android apps, once the rebuild is done, don't forget to submit the new version of your app to the App Store and Google Play.
3. How does it impact your clients?
Finally, for you clients who have decided to register their card on their app: as the standard has changed, the cards which have been saved on their account, will be erased and they will have to re-enter their credit card information.
To avoid any confusion and your clients wondering why their card is no longer registered, you can start notifying them about this added security step. Using for example a banner widget on your home page or push notifications you can explain that to comply with the new European standard, it's now mandatory to get a Strong Customer Authentication to be able to save the card info on the app.