200 days on from the mandatory introduction of Strong Customer Authentication (SCA) in the UK, 73% of retailers have seen online payment fraud decline, according to data from Barclaycard Payments.
In the biggest change to UK payments regulation since the roll out of Chip & Pin in 2006, all online transactions over £25 have been subject to two-factor authentication checks since 14th March, to help combat online fraud.
Nearly three quarters of retailers have seen a drop in fraud in the months since the rollout, with an average reduction for these firms of around 25%. As a result, 63% of those with an ecommerce channel believe SCA has had a positive impact on their business.
However, the study shows that 28% of businesses are still not fully compliant with the regulation. Proprietary Barclaycard transaction data shows that £2.07 million in sales is being declined every day because payments are being routed through non-secure channels and, as a result, failing mandatory security checks.
With four in five Brits happy to go through two factor authentication, there has been a drop in 'basket abandonment' from 32.4% to 28.9%, since SCA was introduced.
Kirsty Morris, MD, specialist sales, Barclaycard Payments, says: "While most business have adapted well to the new levels of security, it does remain concerning that so many are still yet to become fully compliant.
"Our data shows that businesses risk losing millions in revenue by not upgrading their systems, so it’s important they look to make the shopping experience as safe and smooth as possible for their customers."