What is Transaction Risk Analysis (TRA) why does it matter?

TRA is an exemption to the requirement for Strong Customer Authentication (<a href="/glossarycollection/strong-customer-authentication" style="color:#48277C;" target="_blank" title="Strong Customer Authentication">SCA</a>) under the Second Payment Services Directive (<a href="/glossarycollection/the-second-payment-services-directive" style="color:#48277C;" target="_blank" title="The Second Payment Services Directive">PSD2</a>). 

Under the TRA exemption, a transaction can be flagged as a low-risk-transaction if the fraud rate of the related Payment Service Provider (<a href="/glossarycollection/payment-service-provider" style="color:#48277C;" target="_blank" title="Payment Service Provider">PSP</a>) is below a certain threshold, and a real time analysis has not revealed any risk. If the issuer agrees, the individual card-based payment or credit transfer can be exempted from SCA.