Central Bank of Ireland to skip deadline for SCA rules

The Central Bank of Ireland has followed the lead of the Bank of England and announced a delay to the roll out of Strong Customer Authentication (SCA) rules.

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Central Bank of Ireland to skip deadline for SCA rules

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National regulators have been given additional leeway by the European Banking Authority to extend the September deadline for the introduction of the new rules in order to give firms more time to prepare.

E-commerce businesses have warned that more than a quarter of payments would fail under the new regime - which demands a two-step verification process for all online purchases over EUR30.

Announcing the delay, the CBI states: "The Central Bank of Ireland recognises the difficulties with meeting this deadline. We have been engaging with the industry to develop a migration plan to implement SCA for e-commerce transactions, as soon as possible after this date."

UK Finance, acting on behalf of the Bank of England, has already drawn up an alternative timetable for the transition, recommending a minimum 18-month delay to the introduction of SCA rules in the UK, with a further one-year extension for the hospitality and travel sector.

The Irish central bank says it wants to agree a harmonised approach to the migration time periods across the European Union and may well fall in line with UK timetable.

The Bank's decision has been welcomed by the Banking & Payments Federation Ireland (BPFI), which says that an extended deadline will allow more time for the e-commerce industry, including online businesses, to implement SCA reforms in a compliant manner.

Gill Murphy, head of payments schemes, BPFI says: “Today’s statement by the Central Bank is a very positive development for consumers and online businesses as it will prevent unintended disruption to online shopping from 14th September. That said, any additional time will be limited so it is critical that all ecommerce businesses and operators continue to progress their preparation and implementation at pace.”

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