Strong customer authentication’s start won’t be trouble-free

The date is approaching fast: on 14 September strong customer authentication (SCA) rules will enter into force in Hungary. It can already be seen that the system’s launch won’t be free from problems. In the last few months many countries reported to the European Union that online retailers and the online payment systems that serve them (and the service provider banks) aren’t fully prepared for the introduction of two-factor authentication.

The EU has commissioned the European Banking Authority (EBA) with making the final decision about the system’s introduction. On 21 June 2019 EBA published an opinion, which says that the relevant authorities of member states can decide whether to postpone the start of SCA. In Hungary the central bank (MNB) has the right to decide. Mastercard opines that an 18-month transitional period would be ideal. //