Changes in France’s Payment Rules: What Merchants Need to Know
When it comes to payments in France, there’s no denying the market operates under its own unique set of rules and practices. Come April 10, new requirements will kick in, significantly impacting how remote card payments are processed – especially for transactions that previously bypassed the 3D Secure (3DS) protocol.
For merchants, these changes mean adapting payment flows to stay compliant, reduce transaction failures, and keep the customer experience smooth. Here’s the lowdown on what’s changing and how GPayments can help you navigate this transition.
What’s Changing on April 10?
Thanks to recommendations from OSMP (Observatoire de la Sécurité des Moyens de Paiement), several workarounds used to dodge SCA (Strong Customer Authentication) and 3DS fees will no longer fly. Here’s what’s on the chopping block:
- No More 0€ Authorisations Followed by MIT (Merchant-Initiated Transactions)
- Some businesses used 0€ authorisations to skip SCA for Client-Initiated Transactions (CIT).
- New Rule: Issuers will now verify these transactions asynchronously, making this workaround a no-go.
- Direct to Authorisation (DTA) will be a thing of the Past
- DTA allowed merchants to bypass 3DS for low-risk transactions.
- New Rule: The velocity threshold for DTA is now €0, meaning all transactions will face 100% soft declines if not routed through 3DS.
- Unchained MIT will lead to more Declines
- Subscription-based businesses often rely on MIT for recurring payments.
- New Rule: MIT transactions must include a proper chaining reference to avoid hitting velocity limits and triggering authentication requirements.
- MOTO (Mail Order Telephone Order) Exemptions will be assessed Case-by-Case
- The current sector-wide exemption for MOTO transactions will be replaced with case-by-case assessments.
Why these Changes Matter
- 3DS will be Mandatory: Nearly all online transactions in France will require 3DS authentication.
- Impact on Payment Flows: Merchants will need to tweak their payment processes to stay compliant and keep transaction failures to a minimum.
- Security and Compliance: These changes are all about boosting payment security and cutting down on fraud, in line with PSD2 (Payment Services Directive 2) requirements.
For merchants, this means making sure your payment systems are up to scratch to handle 3DS authentication seamlessly while keeping the customer experience frictionless.
How GPayments Can Help
At GPayments, we’re all about helping businesses tackle complex payment regulations while keeping transaction success rates high. Here’s how we can support you through these changes:
- Seamless 3DS Integration
- Our advanced payment authentication solutions make implementing 3DS a breeze, keeping you compliant without compromising the customer experience.
- Frictionless Authentication
- With our Transaction Risk Analysis (TRA) capabilities, you can enable frictionless authentication for low-risk transactions, reducing cart abandonment rates.
- Recurring Payment Optimisation
- For subscription-based businesses, our systems ensure proper MIT chaining to avoid declines and stay within velocity limits.
- Advanced Fraud Prevention
- Our solutions come packed with efficient fraud detection tools to protect your business while meeting SCA requirements.
- Expert Support and Guidance
- Our team of payment experts is here to guide you every step of the way, making sure your business is fully prepped for the new rules.
Is Your Business Ready for April 10?
With the deadline just around the corner, now’s the time to get your ducks in a row. Don’t let these changes throw a spanner in the works for your payment processes or revenue.
Team up with GPayments to ensure a smooth transition and stay compliant with France’s new payment rules. Our solutions are designed to help you adapt quickly, keep friction to a minimum, and keep your customers happy.
References:
https://www.banque-france.fr/system/files/2025-01/OSMP_2023_EN.pdf
