This impact analysis will examine the latest version of the Japan Consumer Credit Association’s credit card security guidelines, which mandate the use of EMV 3-D Secure, in comparison with the European Union’s strong customer authentication (SCA) requirements under the revised Payment Services Directive (PSD2).

It will first lay out the historical background of both these regulatory regimes before comparing three aspects of these regulations namely, applicability, verification requirements, and permitted verification methods.

It will then examine whether these regimes are equivalent to each other and, if not, what additional measures credit card and other payment operators may need to take to comply with both regimes.