Visa warning to businesses about new EU security features

Visa is highlighting the deadline to ensure companies avoid disruption in the run-up to the crucial Christmas shopping period

73% of Irish small businesses have a desire to increase their online presence. 

Thousands of Irish businesses risk being unable to trade online successfully due to not having new security features enabled as part of the EU Payment Service Directive (PSD2). 

From January 1, online transactions in Europe will be subject to Strong Customer Authentication (SCA) measures – requiring banks to request additional information from consumers, such as a fingerprint or four-digit one-time passcode, to verify a purchase. 

Those businesses that have not prepared for the regulation, and therefore cannot always deliver compliant transactions, may find that banks have to decline customer payments.

Given Covid-19 has been the primary focus for most Irish businesses over the past few months, Visa is highlighting the deadline for SCA compliance to ensure companies avoid disruption to their online services in the run-up to the crucial Christmas shopping period. 

The Visa-commissioned research found that 73% of Irish small businesses have a desire to increase their online presence. 

Philip Konopik, Ireland Country Manager, Visa, said that since the outbreak of Covid-19, online trading has become increasingly vital for small businesses to reach their consumers. 

"There is a real risk, however, that thousands of Irish small businesses will suddenly find this critical source of revenue switched off because they have failed to prepare for Strong Customer Authentication requirements," he said.

"We understand that small businesses have other priorities in the current environment, but the deadline set by the European Banking Authority is approaching quickly. We are urging any Irish small businesses selling online to contact the company that hosts their online checkout service as soon as possible to switch on the most up-to-date 3D Secure technology and ensure that customers’ transactions are not declined come the New Year.”