What is the merchant conversion impact of SCA?

SCA adds authentication steps that increase checkout friction. Studies show SCA increases checkout abandonment by 10–15% without optimized 3DS2 flows. Optimized implementation with smart exemptions (transaction risk analysis, trusted beneficiary, low-value exemption) can reduce the conversion impact to 2–5% versus non-SCA baseline.

Which SCA exemptions are available under PSD2?

PSD2 exemptions: low-value transactions (under EUR 30, up to EUR 100 cumulative); merchant-initiated transactions (recurring with fixed amount); trusted payees (customer whitelisted merchant); transaction risk analysis (issuer or acquirer fraud rate below threshold). Issuers can refuse exemptions and require SCA regardless.

PSD2 Strong Customer Authentication Cost

Estimate merchant and bank cost of implementing PSD2 Strong Customer Authentication (SCA) for ecommerce, including 3DS2 integration cost, conversion impact from added friction, and exemption optimization savings.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to use this calculator

1
Enter your financial figures
Enter income, principal, interest rate, tax year, or relevant financial parameters into the PSD2 Strong Customer Authentication Cost.
2
Adjust regional settings
Select your country, tax jurisdiction, filing status, or applicable tax year and rates.
3
Calculate your result
Press Calculate to compute the financial result, tax liability, return, or repayment amount.
4
Review the breakdown
Review the detailed breakdown including totals, effective rates, interest components, and applicable tax implications.

Formula

Result = f(principal, rate, time, jurisdiction)

principal: Initial amount, income, or base value entered into the PSD2 SCA Cost.
rate: Interest rate, tax rate, return rate, or growth rate applied per period.
time: Number of periods (years, months, or days) over which the calculation runs.
jurisdiction: Country, tax year, filing status, or regional rules that adjust the calculation.
Result: Computed amount: total, liability, return, repayment, or present/future value.

Financial results are estimates and depend on the accuracy of the inputs and applicable rules.

Glossary and Definitions

Principal: The initial amount of money on which interest, returns, or tax liabilities are calculated.
Interest rate: The percentage charged or earned per period on the principal, expressed as an annual rate unless stated otherwise.
Compounding: The process by which interest is added to the principal so that subsequent interest is earned on the combined amount.
Present value: The current worth of a future sum, discounted at a given rate to account for the time value of money.
PSD2 SCA: A key concept referenced by the PSD2 SCA Cost: Estimate merchant and bank cost of implementing PSD2 Strong Customer Authentication (SCA) for ecommerce, including 3DS2 integration cost, conversion impact from added friction, and exemption optimization savings.
Strong customer authentication: A key concept referenced by the PSD2 SCA Cost: Estimate merchant and bank cost of implementing PSD2 Strong Customer Authentication (SCA) for ecommerce, including 3DS2 integration cost, conversion impact from added friction, and exemption optimization savings.
3DS2: A key concept referenced by the PSD2 SCA Cost: Estimate merchant and bank cost of implementing PSD2 Strong Customer Authentication (SCA) for ecommerce, including 3DS2 integration cost, conversion impact from added friction, and exemption optimization savings.
Ecommerce friction: A key concept referenced by the PSD2 SCA Cost: Estimate merchant and bank cost of implementing PSD2 Strong Customer Authentication (SCA) for ecommerce, including 3DS2 integration cost, conversion impact from added friction, and exemption optimization savings.
SCA exemptions: A key concept referenced by the PSD2 SCA Cost: Estimate merchant and bank cost of implementing PSD2 Strong Customer Authentication (SCA) for ecommerce, including 3DS2 integration cost, conversion impact from added friction, and exemption optimization savings.

Related Calculators

Open Banking API Revenue

Finance Long-tail

Payment Gateway Fee