43,000 transactions worth £3.64 million were declined at the point of sale in February as Strong Customer Authentication (SCA) ramped up throughout the month, according to figures from Barclaycard Payments.

The new rules, which come into force today, require two-factor authentication for all online sales. This means that all transactions now fall under scope of the new regulation.

According to research from Adyen, just 44 per cent of businesses are prepared for SCA.

The Barclaycard research found that merchants risked losing out on £102 million worth of sales last month.

The data shows that in February 14 per cent of shoppers noticed an increase in their online payments being declined. A further 37 per cent said they went to another retailer to complete their purchase, while the same number said they would be unlikely to shop with a merchant in future if their payment gets rejected without explanation.

“The introduction of mandatory SCA is the most significant payments milestone since the rollout of Chip & Pin more than 16 years ago,” said Rob Cameron, chief executive, Barclaycard Payments. “While the new regulation is a positive step to keep customers’ data safe online, our research shows that shoppers are inclined to abandon transactions if it takes too long to check-out, demonstrating how important it is for businesses to have sophisticated fraud checks in place.

“Merchants who aren’t yet ready should start to prioritise becoming compliant to avoid losing out on sales. Our data has already shown the impact of not being prepared, and this will only get worse if steps are not taken now. The message to retailers is clear; if you don’t make buying online quick and easy for your customers they will simply go elsewhere.”

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