SCA Payments

What Strong Customer Authentication (SCA) means for you and your properties

From 14 September 2019, most online transactions between EEA-based businesses and consumers will have to undergo ‘Strong Customer Authentication’. This means implementing more thorough authentication measures to verify that the consumer making the payment is the rightful card owner.

Under SCA, cardholders paying online, by card, must be authenticated using at least two of these three methods: 

  • Something the customer knows (e.g. a password or PIN), 
  • Something the customer has (e.g. a phone or hardware token), 
  • Or something the customer ‘is’ (e.g. using face or fingerprint recognition)

At Booking.com, we’ve chosen to support affected properties via our Online Payments service – which many properties are already using.

How does Online Payments work?

When properties sign up to Online Payments, Booking.com facilitates payments on their behalf with the help of secure, third-party providers like PayPal. For some partners, that’s every payment, for others it’s just some. Find out about how our payments models work here.

All payments that are facilitated by Booking.com will have SCA applied – so the accommodation partner won’t need to take any action on these. We’ve gone into more detail about this for you in the Connectivity Partner Help Centre.

If you’re interested in learning more about Online Payments in general, take a look at our handbook: Online Payments: what and why?

The benefits of using Online Payments as an SCA solution:

It already exists – and we can bring it to more partners. Since this product is already up and running, infrastructure is in place and we can act immediately. We’re also in a position to support more accommodation partners by inviting properties not currently using Online Payments to start using the service.

It limits operational impact for properties. Many accommodation partners are already using our two Online Payments models. By using an existing product, we keep disruption to an absolute minimum. 

  • Properties on Model 1 process some payments directly and have others facilitated by Booking.com. All payments facilitated by Booking.com will be authenticated automatically when necessary. When the property needs to process a payment directly, we’ll provide extra support. 
  • Properties on Model 2 have all of their payments facilitated by Booking.com. This means they won’t have to take any action as a result of SCA. This article provides more information about these models, and how SCA fits into the process. 

Authentication stays part of the payment process. The authentication step will remain a part of one, fluid payment process – keeping things as simple and logical as possible. 

It limits development work for you. Since we’re able to offer a suitable SCA solution for the majority of properties, we aren’t making any updates to the Reservations API right now. This means there’s no additional work to be done on your side at this point in time. (We will also be keeping an eye on the situation and make sure to update you on any changes.)

Do you have questions about SCA or do you want to be able to answer questions from your properties?

Take a look at the FAQs in the Connectivity Help Centre

Read the Partner Help article we’ve written for your properties

 

Topics
Takeaway
  • SCA comes into effect on 14 September 2019, as part of the new ‘PSD2’ legislation.
  • The Online Payments service will be used to limit impact on properties.
  • There are no planned updates to the Reservations API for the moment.

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