PSD2 is a European regulation for electronic payment services that came in to force on 14th March.
It seeks to make payments more secure in Europe, boost innovation and help banking services adapt to new technologies.
PSD2 follows on from the original Payment Services Directive (PSD), which was adopted by the EU in 2007. This legislation established an EU single market for payments to encourage the creation of safer, more innovative payment services.
PSD2 builds on the previous legislation in the following three areas:
- Increased customer rights in areas including complaints handling, new rules on surcharging and currency conversion
- Enhanced security through SCA (Strong Customer Authentication) criteria
- Enablement of third-party access to account information providing a framework for new payment and account services.
PSD2’s new SCA (Secure Customer Authentication) requirement will have a big impact on the way businesses take payments from customers. It introduces a two-factor ID requirement for certain transactions.
Reports suggest that one in four businesses is not prepared.
To comply with the SCA requirement, for payments over £25 online shoppers will now have to use a text message code or banking app to verify purchases and confirm their identity. The move is the biggest change since chip and pin was introduced 16 years ago.
Tricerion’s SafeLogin™ makes complying with the SCA requirement easy and simple for the organisation AND the customer.
Speak to us about how it works → firstname.lastname@example.org