New Payment Security Measures that WILL Affect Your Business
SCA (Strong Customer Authentication) measures have now come into force as part of the Payment Services Directive II (PSD 2), a European law that all UK banks will be using (and yes this will remain in effect despite Brexit) to prevent fraud.
What does this mean?
Overall these measures will significantly improve the security of payments. Sadly Some of the OTAs have misrepresented the situation for their own gain. It is important to note that SCA ONLY applies to cards typed in online by the customer, all other card transactions are exempt so you can continue payments in exactly the same way you did prior to SCA.
What’s ’strong’ about it?
The ’strong’ in ’Strong Customer Authentication’ means that the person using the card online has passed at least two of three ’proof points’ confirming they’re the owner of the account.
Those three proof points are:
- Knowledge (knowing Password or PIN)
- Possession (having their card or phone with them)
- Inherence (being able to prove their identity through fingerprint or facial recognition).
Direct bookings via your website’s booking engine:
These are relatively straightforward, at the point of booking online the card issuing bank will now ask your guest for 2 of the 3 security points so you will be certain the payment was made by the owner of the card. Stripe and FabPay will take SCA details and confirm the identity of the card holder for you.
Channel bookings from Online Travel Agents (OTAs):
Where you get the customer’s card from the OTA this will be exempt from SCA. Any payments you take from the card will be Card Not Present (CNP) or Mail Order Telephone Order (MOTO). These transactions are treated by the banks in the same way as they were before SCA so there is no change at all.
In the same way as channel bookings, payments where you type the card into a terminal or virtual terminal don’t fall under the new SCA measures as they are a Card Not Present (CNP) or Mail Order Telephone Order (MOTO) payments, that is to say they are exempt from SCA. These transactions are treated by the banks in the same way as they were before so there is no change.
Here at freetobook we offer property owners a number of secure payment options including Stripe and FabPay all of which are 100% SCA compliant for all types of payment.
“Absolutely love it (Stripe). It has changed my life. It is so easy, great when people cancel, works fantastic… Much less admin for me. It’s a win, win all the way.” – 
“Easy to use, keeps card numbers without being exposed to them and can rebill for balances and deposits. Easy to send payment links for people to make deposits and have a card on file.” – 
“Fantastic! It (Stripe) has turned my business around. No need to chase for a deposit and no need to ask guests for payment in cash. Without being able to take a card payment, I previously lost out on business, as many companies book my accommodation for their employees.” – 
“So easy to set up…seamlessly integrated with freetobook and offers all of the functionality and features that our bank offered for less cost. 5-stars!” – 
months now love it all automatic, and you know if cards securing reservations are valid cards, you can also charge guest stays using the system. Well done freetobook! It so easy to set up and maintain even older users like me have mastered it simply like all freetobook products we use…” –