On 14th September 2019, Strong Customer Authentication (SCA) is due to come into force for certain debit and credit card payments in the UK as part of the EU Payment Service Directive (PSD2).
What changes will PSD2 – SCA bring?
In most cases, SCA will be completed by transmitting a unique one-time passcode (OTP) to the cardholder’s registered mobile phone. Failure to respond will result in the payment being declined, and booking cancelled. With SCA, it is therefore essential that the cardholder is involved in the booking process and has access to their mobile phone.
When will SCA be implemented?
This is still unclear, on 14th August 2019 UK FCA announced an 18-month delay to the enforcement of SCA compliance however card issuing companies are required to make progress to the revised enforcement date. It remains unclear as to which suppliers will implement SCA from 14th September and who will apply a phased approach. We continue to press suppliers to provide this information to us.
How could SCA impact your travel programme?
Payments made by individual corporate and/or personal credit cards to Gray Dawes may fall under the scope of SCA:
- Where an OTP may be required
No-frill airlines (Easyjet, Ryanair etc.) and in a small number of other instances where the card is securely transferred in the booking process.
- Where an OTP will not be required
The vast majority of bookings are paid on an individual credit card, either Gray Dawes acts as the merchant and charges the card, or the card is billed through the IATA payment programme, in both cases, these transactions are recognised as mail order/telephone order (MOTO) which are out of scope for SCA.
To ensure minimised disruption while suppliers implement SCA, we will deploy our virtual cards to secure the purchase and billback to your card with an associated administration fee.
If you would like to learn more, or require anymore information about the above, get in touch with us now by clicking here.