Strong Customer Authentication (SCA) – what is it and how does it affect your Folksy shop?
You may (or may not!) have heard about the new Strong Customer Authentication (SCA) regulations. We’ve had a few queries from Folksy sellers who are feeling unsure about what they are, what they mean for their shops and what they need to do to be compliant, like this question from Sarah Thexton of PhotoFairytales, which she posted on our Talk Folksy forum:
“Hi everyone – I had an order this week which was paid via Stripe, but according to my Stripe account that payment wouldn’t have been covered by the new SCA, which is coming in soon. Does anyone know what I need to do in my Stripe dashboard so that it accepts Folksy payments without it conflicting with this SCA thing? Or is this something Folksy need to do at their end? Bit confused!”
So in this post we’re going to explain what SCA is and how it affects you as Folksy sellers.
What is SCA?
Strong Customer Authentication (SCA) is a new European regulatory requirement intended to reduce fraud and make online payments more secure.
When does SCA come into effect?
The requirement was scheduled to come into effect on the 14th September 2019, although some countries (including the UK) have granted an additional 18 month phase-in period to give banks and businesses time to get their ducks in a row.
What does Folksy have to do to meet SCA requirements?
Our PayPal integration doesn’t require any changes as PayPal already has sophisticated authentication practices in place. The service we use to handle direct card payments (Stripe) have services that are SCA-compliant, however we are not currently using one of these. This means that we need to update our payment processing systems to use one of their compliant services. We have been working on this for some time and the work is nearing completion.
What do Folksy sellers have to do to meet SCA requirements?
Nothing! Once we’ve finished updating our payment processing systems your buyers should just be able to proceed through purchases and the new Stripe service should handle all SCA-compliance without you having to worry about it.
If you have any questions about SCA, let us know. You can leave a comment on this post or email our support team at firstname.lastname@example.org
And if you really want to, you can read more about the SCA regulations here – https://www.fca.org.uk/firms/strong-customer-authentication