What’s PSD2 and how does that affect my business?
You might have come across the news about certain legislation coming into effect from September 14th. In case you haven’t heard of it, from the middle of the following month onwards, the European Union and the European Economic Area will need to follow specific rules to receive electronic and online payments. The rules are called Payment Services Directive 2 (or PSD2) and take into account new providers of innovative payment services that have appeared since the first PSD, which came into effect back in 2009.
PSD2 aims to enhance competition within the digital payments market, promote innovative payment services and make it easier and safer to pay online, protecting consumers.
All good in the hood, but what should you and your eCommerce team do to make sure that you are PSD2 compliant? Our team here at Matrix Internet is partnering with the eCommerce Association of Ireland (eCAI) to spread the word and prepare clients and business to be compliant with the new requirements. Check below what you need to do in order to become #psd2ready.
- How does this new regulation affect my business?
If you sell goods of any kind, have an eCommerce site or receive electronic payments, PSD2 affects your business entirely. The directive established standard rules about certain types of electronic payments, such as credit transfers, direct debits, card payments and mobile and online payments. To be able to keep your business receiving those sorts of payments, you will need to ensure that it is compliant with the RTS (Regular Technical Standards) on SCA (Strong Customer Authentication) and make sure you have a 3-D secure protocol in place.
- What is SCA?
SCA is an authentication through at least two out of the following three factors:
- Knowledge: something only the user knows (e.g., passcode or PIN);
- Possession: something only the user possesses (e.g., mobile phone or token);
- Inherence: something the user is (e.g., fingerprint, facial, iris or eye vein).
Using SCA is required when the payer initiates an electronic payment transaction and increase consumer confidence in electronic payments. Our team of developers is ready to help you find a solution that protects you and your customers from fraud while offering the best payment experience.
- What is 3-D secure?
3-D Secure or 3DS is a messaging protocol that promotes frictionless consumer authentication. It also allows customers to authenticate themselves with their card issuer when making card-not-present (CPN) e-commerce purchases. This protocol also takes into account new payment channels and supports the delivery of industry-leading security, performance and user experience.
- Is there any way for me to get more information about #psd2ready?
The eCAI released a website, psd2ready.ie, with all the information you need to know about the directive. On it, you can also find data on how to contact their team, register to their event and get some advice on how to get prepared for September 14th. You can also make sure that your business is 100% #psd2ready by getting in touch with our team, that can advise you on what to do and offer you guidance on the process.
Considering the above, we think it would be a good idea for you to meet us, the eCAI team, our developers and all the attendees of the “Are you #psd2ready?” event that will take place on the next September 4th, at Dublin City Hall. Will we see you there?