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PSD2 SCA Compliance: How Strong Customer Authentication and 3D Secure Improve Online Payment Security


Understanding PSD2 and Strong Customer Authentication (SCA)
The rapid growth of digital payments has created new opportunities for businesses and consumers. However, it has also increased the risk of online payment fraud. To address these challenges, the European Union introduced the Second Payment Services Directive (PSD2), a regulation designed to enhance payment security, encourage innovation, and strengthen consumer protection across the European Economic Area (EEA).
One of the most important requirements under PSD2 is Strong Customer Authentication (SCA). SCA requires payment service providers to verify a customer's identity using at least two independent authentication factors before approving certain electronic transactions.

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