Fears from travel retailers over the possibility of a sales blackhole when a new EU payment security protocol comes into force later this year have been temporarily dampened.

The EU *Payment Services Directive 2’s Strong Customer Authentication (SCA) initiative, which enters into force on 14 September, aims to safeguard against customer fraud using extra verification checks to authorise transactions.

However, while instore purchases using a card and PIN are protected, there had been concerns that ‘customer not present’ sales, such as online for collection or delivery at an airport or address and pre-booked airline meals were at risk should travel retailers have been unable to implement the necessary technical changes at POS by the deadline.

low-value sales using contactless payments in bars and restaurants may result in ‘transaction declined’ messages depending on the customer’s card issuer or the PoS terminal used if basic authentication technology was not installed.  Mail and telephone orders are exempt from SCA.

In a statement issued to TRBusiness, The Fair Payment Alliance says many businesses were either unaware of the new requirements or were waiting for clarification from their card acquirer or processor.

NO DELAY, BUT ROOM FOR MANOEUVRE..

As a result of lobbying from travel retail and other European commerce and ecommerce stakeholders, The European Banking Authority (EBA) – the body responsible for regulating payment rules ­– has announced that National Payment Systems Regulators (PSR) can set their own enforcement timetables based on the readiness of their markets. A deadline will be set in 2020 when all member states should be compliant.

According to the statement, the UK’s PSR is said to have already delayed implementing SCA to give firms adequate time to prepare, with travel retailers advised to discuss how the situation relates to their operations.

Travel retail had been pushing for a delay of the SCA’s introduction on 14 September.

Jacques Parson, who led the Travel Retail Fair Payment Alliance lobby on payments commented: “Although I would have preferred an EU-wide delay, the EBA’s announcement allows each member state’s national competent authority to agree the steps necessary within their own core markets. That is significantly better than the significant damage 14 September could have caused so many businesses both large and small. I most strongly advise retailers that are unaware of the new requirements to contact their card acquirer or payment services provider urgently.”

*Enacts extra checks to verify consumers, especially those using ecommerce services when making purchases or performing other actions online such as updating contact details. Under new rules, customers will need to authenticate themselves in two ways, using a password, mobile phone or biometrics.