The strong customer authentication (SCA) requirement of the revised Directive on payment services (PSD2) has come into force in most countries now, e.g. in Germany all transactions independent of the amount should be processed by the PSD2 rules by 15th March at the latest.
This implies that all merchants need to send their transactions using the EMV® 3DS protocol. And, in order to achieve a good conversion rate they should use exemptions allowed by the law. Issuers, on the other hand, have prepared themselves to process such exemptions and offer merchant whitelisting to ensure the flow is as frictionless as possible.
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In addition, merchants and PSPs will learn about the impact the exemptions have on the conversion rates. Issuers will be able to compare their results to the insights from the overall market.
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EMV® is a registered trademark in the U.S. and other countries and an unregistered trademark elsewhere. The EMV trademark is owned by EMVCo, LLC.