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BizReport : Internet Marketing 101 : September 08, 2019

New verification rules for certain online payments

Nearly everyone has made or received an online payment at one time or another. Whether it is to purchase a concert ticket or get signed up for an upcoming online course, digital payments are an important component of the global economy these days. With the rapid increase in popularity of these types of payments has also come extra scrutiny.

by BizReport

Now, governments and regulatory bodies are looking into ways to ensure the safety and security of people's online banking. Which is why, as of September 14, 2019, the European Union began enforcing an extra step in e-commerce payment processing no matter the platform. This new step makes it so that digital payment users are required to undergo 3DS verification when they make an online payment.

If you have not heard of this before, the extra verification step might seem a bit confusing. This new regulation basically means that not only will you be asked to provide your credit card number when you make an online payment within the European Union, but you will also be required to provide additional confirmation that it was in fact you who is attempting to make the payment. This extra verification step will generally take place by using a mobile application or getting an SMS.

This new regulation will have a potentially massive impact on businesses and organizations that collect online payments. Companies working with donor acquisition strategies and collecting donations online will need to consider alternative solutions. Many are looking toward service providers like PAAY to navigate this extra step.

As these regulations are currently in effect throughout the European Union, it looks as though other regions will not be far behind. It is very possible that similar measures will be taken in North America, and businesses and consumers there will also need to accommodate this new verification. In the future, if you're paying for a service like Mobilizz, you might be required to authenticate your payment using this new process.


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