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PSD2 readiness: transitional period for SCA for online card payments in Italy

Wednesday 7 August 2019 10:37 CET | News

The Bank of Italy has announced it will grant more time to the Italian financial industry to complete the enforcement required by the legislation on the security of online payment card transactions.

In view of the complexity of the enforcement, on June 21, 2019 the European Banking Authority (EBA) granted national Authorities the possibility to postpone the 14th September deadline in order to allow the implementation of new authentication tools by all customers, with exclusive reference to the online card payments.

Having heard the main stakeholders: banks, card schemes, service providers, users associations, plus in the context of dedicated meetings of the Payments Italy Committee, the Bank of Italy has considered that a gradual transition can greatly reduce the risks of inefficiencies in online payments by card.

The Bank of Italy has therefore decided to grant (upon request of the PSPs) an extension for a limited period, based on the maximum term that EBA will define and subsequently disclose to the market. PSPs wishing to make use of this extension will have to submit a detailed transition plan, including communication and customer preparation initiatives, both on the merchant and cardholder sides.

During the transitional period, payments made without strong authentication may continue to be sent and accepted in the existing way. However, in the event of fraud, the rules for attributing liability in the event of fraud to transactions that do not meet the security requirements of the legislation apply.


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Keywords: Bank of Italy, SCA, PSD2, card payments, online payments, Italy, Europe
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