What is Strong Customer Authentication (SCA)?

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Strong Customer Authentication (SCA) is a security requirement mandated by the European Union's Revised Payment Services Directive (PSD2) that requires electronic payments to be authenticated using at least two independent elements from the categories of knowledge, possession, and inherence to significantly reduce fraud.

Strong Customer Authentication (SCA)

What is Strong Customer Authentication (SCA)?

What is the regulatory framework behind SCA, and what are its core requirements for payment service providers?

How do the various exemptions, such as low-value and Transaction Risk Analysis (TRA), allow certain payments to bypass SCA?

Why is SCA a critical component in the fight against e-commerce fraud, and what measurable impact has it had on transaction security?

When does SCA apply to emerging payment methods, specifically transfers involving E-Money Tokens (EMTs) and custodial crypto wallets under MiCA?

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