psd2 • sca • 3ds2
PSD2 SCA & 3DS2: What Merchants Need to Know
•6 min read
Under PSD2, Strong Customer Authentication is required unless an exemption applies. Optimizing exemptions reduces friction.
- Low‑value and low‑risk exemptions
- Trusted beneficiaries
- Transaction Risk Analysis (TRA)
Coordinate with issuers and gateways to retry soft declines with 3DS2 when needed.
FAQs
What is a soft decline?
An issuer signals authentication is required; retry with 3DS2 instead of abandoning the payment.
Does SCA apply outside the EEA?
No, but many issuers adopt similar controls, so supporting 3DS2 is still beneficial.