BRC and UK Finance respond to FCA's SCA plan

The British Retail Consortium (BRC) has welcomed the Financial Conduct Authority’s announcement of an 18-month phased implementation plan for Strong Customer Authentication, that will come into force on 14th September.

“The decision by the FCA avoids a payments cliff edge, whereby 25-30% of e-commerce transactions made online after 14th September would have been at risk of failing as a result of the new laws,” says Andrew Cregan, Payments Policy Advisor at the BRC.

Retailers and banks should now have time to put in place the necessary technical fixes required, and minimise any disruption in online transactions, he adds.

“The BRC supports the implementation of Strong Customer Authentication, which will strengthen the protections that customers have in their digital purchases. We are working closely with our members on this issue, however it is vital that the FCA keeps up the pressure on banks and payment service providers to deliver solutions in a time to avoid another cliff edge in 18 months for retailers and other businesses on the front line,” Cregan states.

The move has also received the thumbs up from banking sector association UK Finance. “Fighting fraud must be a priority for everyone and these new rules will be an important tool in protecting customers, helping keep them safe when they shop online. The FCA plan, which supports our proposals for a managed roll-out, will help the industry ensure a timely migration to SCA and result in the best outcomes for consumers while effectively balancing both convenience and security,” says Eric Leenders, Managing Director of Personal Finance, UK Finance.

“The banking and finance industry has worked closely with the FCA, retailer groups and other stakeholders to deliver these required changes in a way that minimises any disruption for consumers and businesses. We want to ensure that the convenience of making an online payment is balanced with these increased security standards,” he continues.

Leenders concludes: “We expect that providers will have appropriate solutions in place to allow their customers to authenticate themselves. This could mean your bank or provider using a text message, phone call, banking app or card reader to check your identity. Other methods are available and more are being developed that will make it even easier to shop more safely online in the future, including biometric technologies that could allow customers to be identified with something as simple as a thumbprint.”