Strong customer authentication (SCA) is a PSD2 requirement for online payments in the European Economic Area. It mandates two or more forms of identity verification — like something the customer knows (password), has (device), or is (biometric). SCA is enforced by issuers and supported through tools like 3D Secure 2.0.
Meeting SCA requirements protects you from fraud liability and improves cross-border approval rates. You should monitor authentication success rates and review failed transactions for friction points.
If you sell to customers in the EU or EEA, SCA may be a compliance requirement for certain transactions. AltoPay supports SCA through 3DS2 and helps configure exemptions when applicable.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
