{"id":13974,"date":"2020-12-07T06:13:00","date_gmt":"2020-12-07T05:13:00","guid":{"rendered":"https:\/\/www.invoiceberry.com\/blog\/?p=13974"},"modified":"2023-09-28T16:47:36","modified_gmt":"2023-09-28T14:47:36","slug":"invoiceberry-sca-regulation-compliance","status":"publish","type":"post","link":"https:\/\/www.invoiceberry.com\/blog\/invoiceberry-sca-regulation-compliance\/","title":{"rendered":"InvoiceBerry and SCA Regulation – We Are Compliant!"},"content":{"rendered":"\n

SCA regulation or “Strong Customer Authentication”<\/em> is an online payment law passed by European Union (EU) on September 14th, 2019. The law is expected to be fully enforced by December 31st, 2020, giving organizations some time to comply – if they operate or have clients within the EU.<\/p>\n\n\n\n

In order to support SCA regulation, you need to first determine if your business is impacted and then make all necessary changes to avoid declined payments. <\/p>\n\n\n\n

Because InvoiceBerry is based in the United Kingdom and has payment integrations with Stripe<\/a>, PayPal<\/a>, Square <\/a>and WePay<\/a>, we were sure to follow the new authentication guidelines from the very beginning.<\/p>\n\n\n\n

We take security and fraud prevention very seriously and want nothing to stand in the way of customers getting their invoices paid as quickly and easily as possible.<\/p>\n\n\n\n

Now we wan’t to help better inform your understanding of the regulation and it’s potential implications. So here goes!<\/p>\n\n\n\n

What exactly is the SCA Regulation?<\/strong><\/h2>\n\n\n\n

Strong Customer Authentication is a measure that was devised by the EU to improve online payment security. The aim is to reduce fraudulent activity by having customers go through additional verification steps when conducting online purchases.<\/p>\n\n\n\n

In accordance with SCA regulation, the authentication process will need to utilize at least two of the three possible authentication methods. These 3 methods are:<\/p>\n\n\n

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Password, code, or pin<\/strong><\/figcaption><\/figure><\/div>\n\n
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Phone verification<\/strong><\/figcaption><\/figure><\/div>\n\n
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Fingerprint or facial recognition<\/strong><\/figcaption><\/figure><\/div>\n\n\n

For more in-depth information regarding the verification processes, read here<\/a>.<\/em><\/p>\n\n\n\n

If your business accepts cards and is based in the European Economic Area (EEA) or you create payments on behalf of connected accounts based in the EEA, SCA likely applies. <\/p>\n\n\n\n

But use this handy SCA Decision Tree<\/a> created by one of HSBC’s preferred suppliers for card processing in the UK, Global Payments, to figure out whether you need to worry about being SCA compliant. <\/p>\n\n\n\n

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Source: GlobalPay<\/a><\/figcaption><\/figure>\n\n\n\n

SCA regulation is ultimately another measure to protect buyers and their credit card details from fraudsters. Now, in most cases when you want to pay for something online, there will two authentications. <\/p>\n\n\n\n

Maybe (as per usual) you’ll first be prompted to enter your CVV code. Then another popup might appear requiring you to input a code sent to your mobile banking app or maybe it’ll be an SMS code. Time will tell, as will the context. <\/p>\n\n\n\n

Regardless, for the sake of our InvoiceBerry integrations, we got ourselves ready so customers could rest assured that when they send an invoice to clients using our software, their payments can be received without issues. <\/p>\n\n\n\n

InvoiceBerry’s commitment to SCA Compliance<\/h2>\n\n\n\n

The advantages of accepting card payments<\/a> are undeniable. That’s why we’ve made it our mission to guarantee to enable secure and convenient transactions. <\/p>\n\n\n\n

As mentioned above, our online invoicing solution makes conducting business easier by implementing a number of payment methods customers can seamlessly integrate onto their invoices. In fact, this is what the InvoiceBerry payments page looks like:<\/p>\n\n\n\n

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The options are seemingly endless, right?! It’s a big point of pride providing customers with the option of having their InvoiceBerry invoices include safe payment processing options. Each link is unique to a specific invoice and takes payees to a page where payment information can be entered.<\/p>\n\n\n\n

When a bill is settled up, the payment from the payee’s bank card is authorized and the money is then placed directly into the InvoiceBerry user\u2019s business account. Cha-ching!<\/p>\n\n\n\n

Our Stripe, Square and PayPal payment integrations are all ready for SCA regulation. To demonstrate, we ran a test on Stripe so you could see what the second SCA authentication step might look like for a payer and here’s the test popup:<\/p>\n\n\n\n

\"invoiceberry-sca-regulation-compliance\"<\/figure>\n\n\n\n

Rest assured, we’ve covered our bases and stand SCA-Ready to serve. <\/p>\n\n\n\n

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SCA Regulation Exemptions<\/h2>\n\n\n\n

It’s worth noting that there are also some exemptions that may not require authentication. The most popular examples include:<\/p>\n\n\n\n

Low-risk transactions<\/h3>\n\n\n\n

Payment providers are permitted to converted to local equivalent amounts and perform their own real-time risk analysis to determine whether SCA should be applied to each transaction. If the payment provider\u2019s or bank\u2019s overall fraud rates for card payments do not exceed certain thresholds:<\/p>\n\n\n\n