Signifyd has launched Signifyd Seamless SCA, a pioneering set of modern secure payment services that meets the requirements of the PSD2 regulation and allows retailers to optimize revenue while providing their customers with friction-free buying experiences that cultivate return shoppers and build customer lifetime value.
Merchants powered by Seamless SCA will be fully prepared for Europe’s coming PSD2 requirements, slated to take effect in September. PSD2, or the second Payment Services Directive, is a European Union consumer-protection regulation that requires businesses engaged in online transactions to provide greater security.
Signifyd’s solution, which is ready for demonstrations and proof of concept trials today, is fully compatible with the EMV 3-D Secure 2 protocol. It embraces PSD2 head-on, rather than turning to a pretzel of exemptions in an attempt to avoid adhering to the new consumer-protection requirements.
Signifyd Seamless SCA provides a clearly differentiated solution above and beyond what PSD2 requires. Seamless SCA’s holistic approach provides a unique ability to perform strong customer authorization without step-ups for all transactions, not just exemptions.
“Avoidance strategies, such as optimizing exemptions to bypass the need for SCA, are not a real solution. Delivering a great SCA experience is,” said J. Bennett, Signifyd vice president of operations and corporate development. “It appears enforcement of strong customer authentication will be delayed, especially after the Joint Industry Statement issued Aug 1 by Visa, Mastercard and European payments and retailer consortiums. But retailers that prepare themselves now will hold a competitive advantage when enforcement begins.”
Managing narrow exemptions based on transaction values, fraud risk and whitelists will create administrative headaches for retailers and are unlikely to deliver value commensurate with the cost in time and resources. In fact, the most commonly cited exemptions are only sometimes applicable to small value baskets and are ultimately dependent on acquiring and issuing banks’ low fraud rates. Retailers can’t control either of these factors.
Signifyd is well familiar with the transaction authentication landscape, having relied on the three pillars of SCA — something the buyer knows, something the buyer has, something the buyer is — for years. Its Commerce Network of more than 10,000 merchants selling in more than 100 countries powers the advanced artificial intelligence that renders obsolete the need to add disruptive steps to the buying process, such as requiring a PIN to approve a transaction.
The same AI powers Signifyd’s Guaranteed Fraud Protection and INR Protection, which makes merchants financially whole on approved orders for fraudulent transactions and consumer claims that packages did not arrive. The constantly learning machines also mean that Signifyd can automate the management of non-fraud chargebacks.