21/10/2019

Strong customer authentication on e-commerce transactions made with payment cards

On 16 October 2019, the European Banking Authority (EBA) published its Opinion on the deadline for the migration to strong customer authentication (SCA) for e-commerce card-based payment transactions. This opinion set the deadline as 31 December 2020 and prescribes the expected actions to be taken during the migration period.

On 14 August 2019, the Central Bank of Malta (Bank) officially delayed the application of the provisions of the Commission Delegated Regulation (EU) 2018/389 (RTS on SCA and CSC) for regulated institutions on e-commerce transactions made with payment cards only. In this scenario, the delay will run until 31 December 2020 and the provisions will then come into force.

Notwithstanding this, the Bank would like to remind market stakeholders that payment service providers should protect consumers against fraud and that the provisions of Paragraph 50 of the Bank's Directive No. 1 on the ‘Provision and Use of Payment Services’ still apply.

In order to ensure a smooth implementation of SCA-compliant solutions and approaches, the Bank will continue to engage with the EBA and market stakeholders.

For further clarification you are kindly requested to contact the Bank by email.

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