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Processing Through Acquirers with Lower Fraud Rates Reduces the Need for SCA Under PSD2

Many merchants both within and outside of Europe are concerned with meeting Strong Consumer Authentication (SCA) requirements and how this might impact sales when nearly every eCommerce order over €30 will require two-factor authentication. A lesser known fact is that this order value threshold for requiring SCA increases in multiple tiers based on the fraud rates of both the acquiring and card issuing banks facilitating the transaction, suddenly making the fraud rates of a merchant’s European processors much more important.

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