The State Duma may oblige Visa and Mastercard to localize the security of Internet payments in the Russian Federation

Russia plans to require international payment systems to transfer the authentication function of bank customers for online payments to the National Payment Card System (NSPK). This is stated in the amendments to the law "On the national payment system," awaiting a second reading.

This is a 3D Secure protocol that provides additional security when making online purchases and other cash transactions. An SMS containing a dynamic code is sent to the payer's mobile phone. In most cases, this allows you to make sure that the card holder makes the payment.

According to the bill, systemically important banks from November 1, 2019 must apply to authenticate their customers to the NPCS, the rest of the banks – from November 2020. According to the chairman of the State Duma on the financial market, Anatoly Aksakov, the item on the localization of 3D Secure was introduced after consultation with the Central Bank.

Now Visa and Mastercard with issuing banks independently process 3D Secure inquiries. If the amendments are accepted, banks will have to send requests for authorization via 3D Secure not directly to the payment system, but to the NPSK, thus payments will potentially have security risks.

Experts believe that banks may have time to carry out work before November, but they will need additional funds for the development and integration – in terms of emission and acquiring.

Note that NSPC is 100% owned by Sberbank and was established in 2014, when due to sanctions in the Russian Federation, the Visa and Mastercard cards issued by Russia Bank and SMP Bank were blocked.

After that, a law was passed that obliged international payment systems to transfer to NSPK the processing of card transactions in Russia: if they stop servicing a certain bank, within the country, operations on its cards will take place.

Initially, NSPK offered to run without 3D Secure, but as a result, international systems continued to process requests for this function on their own. In the current form, the law does not require the transfer of 3D Secure functions to the NSPK, employees of several payment systems note.

Recall that in July 2017, the head of NSPK, Vladimir Komlev, stated that he does not see at the moment any need to use blockchain technology.

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