New data from Barclaycard Payments reveals UK retailers have so far lost out on £130m worth of sales as a result of not being fully compliant with new Strong Customer Authentication (SCA) rules which came in to effect last month.
In the biggest change to payments regulation since the roll out of Chip & Pin in 2006, all online transactions over £25 have been subject to two-factor authentication checks since 14th March, to help combat online fraud.
Data from Barclaycard Payments, which processes £1 in every £3 spent on credit and debit cards in the UK, shows that over 22,000 transactions a day, worth £4.3m, have been declined in the month since SCA became mandatory.
The data shows two in five online businesses (37 per cent) have not introduced any new payments technology on their website over the past two years. However, of those that have, 92 per cent agree that the technology they invested in has improved the checkout experience for their customers – one example being technology that can help reduce the number of SCA-related declines, with other benefits including in-depth analysis of where and when basket abandonment takes place.
Barclaycard Payments transaction data shows that over the past month, 93 per cent of transactions processed through the Barclaycard Transact platform were approved on the first attempt, compared to just 49 per cent of transactions going through less secure, non-SCA compliant channels.
Rob Cameron, CEO of Barclaycard Payments, comments: “One month on from the introduction of mandatory SCA checks, it’s clear that too many businesses are still not compliant and are losing out on millions of pounds in sales as a result.
“The message to retailers is clear; prioritise SCA compliance, simplify the customer journey and take advantage of the latest payments technologies to avoid losing out on sales and customers.”
