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Beyond the Transaction: Every Transaction Has a Story

Security Matters: A New Roadmap for Authentication in Europe

Security Matters


New regulatory measures requiring strong authentication for e-commerce transactions will make authentication a key focus for issuing and acquiring banks, merchants and consumers in Europe.  The aim of this regulation is to reduce fraud in online payments with strong authentication, or use a risk-based authentication approach as long as it is effective in controlling fraud.  The focus for MasterCard and its customers is to provide a safe, simple and consistent consumer experience.

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MasterCard SecureCode, MasterCard’s online authentication solution, is based on the cross scheme 3D-Secure standard and satisfies the new European requirements. In addition to 3D-Secure, MasterCard has a suite of products that can support customers’ needs to implement strong authentication methods. As MasterCard develops and releases new products into the European market, the goal will be to ensure that those products are compliant with the new regulatory framework and any future regulatory changes.

The new European measures on authentication can be referenced in the draft Revised Payment Services Directive (PSD2) and in the European Banking Authority’s Guidelines on the security of internet payments (EBA Guidelines). The PSD2 and the EBA Guidelines contain similar authentication requirements. The EBA Guidelines were issued in December 2014 and will apply to customers in most EU countries beginning Aug. 1, 2015.

In order to help our customers better understand the changing requirements between the EBA guidelines and the upcoming PSD2 and its impact, please refer to the E-Commerce Transactions – A New Roadmap for Authentication in Europe white paper and supporting Q&A.

MasterCard’s Christoph Baert, Paul Baker and Cathy Mulrow-Peattie co-authored this white paper.