Non-compliant Merchants Risk Significant Revenue Drop

  • Retailers risk losing £102m in sales due to SCA regulation
  • 43,000 transactions worth £3.64m declined in February
  • 37% of shoppers switch to another retailer after payment rejection
  • SCA aims to combat £376m online fraud in the UK annually

Barclaycard Payments has warned that retailers risk losing £102 million in sales due to the Strong Customer Authentication (SCA) regulation, which became mandatory on March 14. A study revealed that 100% of transactions fall under its scope. In February, 14% of shoppers experienced declined online payments and 37% switched to another retailer. The number of SCA checks increased, leading to 43,000 daily transactions worth £3.64m being declined. SCA targets online and app-based transactions, requiring cardholders to verify their identity through a one-time passcode provided by the card issuer. Retailers must prioritize compliance to avoid revenue loss.

Factuality Level: 10
Factuality Justification: The article provides accurate information about the impact of SCA on merchants and shoppers, cites specific data from Barclaycard Payments’ study, includes quotes from a relevant source (Rob Cameron, CEO of Barclaycard Payments), and presents objective information without any sensationalism or personal opinions.
Noise Level: 2
Noise Justification: The article provides relevant information about the impact of Strong Customer Authentication (SCA) regulation on merchants and consumers, and offers insights into the potential losses that non-compliant businesses may face. It also includes quotes from a CEO to support its claims. However, it could benefit from more in-depth analysis or discussion of the long-term consequences and solutions for businesses to become compliant.
Financial Relevance: Yes
Financial Markets Impacted: Online merchants and payment processing companies
Financial Rating Justification: The article discusses the impact of Strong Customer Authentication (SCA) regulation on online transactions, which affects revenue for merchants and payment processing companies. It mentions potential losses in sales and the importance of having sophisticated fraud checks in place to avoid losing customers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the situation described is a financial issue related to compliance with new regulation, which has caused some loss of revenue for merchants but does not have major consequences.

Reported publicly: www.retailsector.co.uk