The SCA Exemption Engine uses machine learning to help reduce friction and cut costs for online merchants
With the PSD2 requirement for Strong Customer Authentication (SCA) going into effect on September 14 this year, Worldpay will launch the SCA Exemption Engine for merchants operating in the European Economic Area to reduce friction from the online checkout experience.
Under the SCA requirement, only an acquirer can file exemptions with issuers on behalf of the merchant. Worldpay’s SCA Exemption Engine, which requires little-to-no integration, is a first solution that employs machine learning to apply the most applicable SCA exemption to an individual payment. The SCA Exemption Engine’s predictive model is built by analyzing Worldpay’s payment data in the region as well as proprietary issuer profiles, which inform the solution’s decisioning.
The SCA Exemption Engine works by reviewing eligible exemptions, such as a low-risk transaction, then performing a real-time risk assessment based on shopper, merchant, issuer and payments data – such as buying patterns, deep device fingerprinting, geolocation, issuer preferences, and anomaly detection-focused machine learning. Eligible transactions are then exempt from SCA and may continue onto the issuer for swift authorisation1.
SCA Exemption Engine can help reduce the number of transactions a business needs to route via two-factor authentication.
The solution will be available ahead of the September regulatory deadline. Worldpay is working extensively with regulators, industry associations, issuers, payment networks, partners and merchants to help the industry prepare for PSD2.
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