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DNB provides update on additional time for strong customer authentication

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On 8 August, following similar announcements by other national supervisors, De Nederlandsche Bank (DNB) announced its intention to allow limited additional time beyond 14 September 2019 for market participants that had been unable to prepare for the introduction of strong customer authentication (Strong Customer Authentication, or SCA) for credit card transactions in time.

Office worker with debit card in hand is looking at tablet for online payment, with coffee, smartphone and documents on the desk.

How much additional time will be allowed has not yet been determined; more information will follow later this year. DNB says that, together with the European Banking Authority (EBA), it aims to achieve a uniform migration to SCA for credit card transactions.

The background to DNB’s announcement is that, on 21 June 2019, the EBA published an opinion on the application of SCA . The opinion also addresses possible transitional issues caused by insufficiently timely preparation among various market participants, such as card schemes and merchants. These transitional issues could be harmful to both credit card holders and credit card merchants. The EBA opinion therefore allows competent supervisory authorities to grant market participants limited additional time to introduce SCA. The statutory implementation date for the Regulatory Technical Standards on SCA remains unchanged at 14 September 2019.

A condition for any extension is that the market participant concerned must draw up a sound plan with clear timelines. Relevant parties in the credit card ecosystem—including card schemes, card issuers and acquirers, credit card processors, the Dutch Consumers’ Association and Thuiswinkel.org—have asked the Dutch Payments Association to work with them to draw up the Dutch SCA Migration Plan and coordinate its implementation, subject to DNB’s approval.

Questions can be sent to sca-migration@betaalvereniging.nl.

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