Strong Customer Authentication (SCA) is a new European regulatory requirement to reduce fraud and make online payments more secure.
Under this new regulation, specific types of low-risk payments may be exempted from Strong Customer Authentication. Payment providers like Stripe are able to request these exemptions when processing the payment.
The cardholder’s bank will then receive the request, assess the risk level of the transaction, and ultimately decide whether to approve the exemption or whether authentication is still necessary.
Transactions below €30 are considered “low value” and may be exempted from SCA.