September 14, 2019 was the deadline for the implementation of Strong Customer Authentication (SCA) for debit and credit card transactions. While the implementation of certain aspects of SCA has been deferred until the end of 2020 under current regulations, cardholders at the point of sale (POS) must enter their PIN either after every five contactless transactions or if the total value of contactless transactions exceeds 150 euros.
The payment terminal should prompt the cardholder to enter their PIN if necessary, but it is possible that some contactless bank cards may generate a "transaction rejected, use another reader or card" message instead. We do not know how often this will happen, as it depends on whether a particular card issuer has updated its cards to comply with the new rules. Our advice to you is not to worry because there is a solution for this situation and the cardholder can still easily pay with his card: When the terminal displays the message "Transaction rejected, use different reader or card", simply ask the cardholder to insert the same contactless bank card into the payment terminal and perform a standard chip & PIN transaction. This should allow the transaction to continue, provided the customer has sufficient funds in his account.
Apple Pay and Google Pay transactions are not affected and will function normally. However, it may happen that when paying with Wearable (e.g. Fitbit) the payment is rejected and the customer has to pay with his physical card.
As mentioned above, we do not know how many of your transactions will be affected, as it depends on how quickly the cards are exchanged by the customer's banks. We recommend that you inform your employees about the described possible effects of SCA on contactless payments.
You can find a quick and helpful overview of how to operate your terminal here:
The payment terminal should prompt the cardholder to input their PIN. However, in the early stages there is a risk that the transaction is simply rejected instead with a “transaction rejected, use another reader or card” message. Simply ask the cardholder to insert the same contactless bank card into the payment terminal and perform a standard chip & PIN transaction.