Is your online shop ready for PSD2?

On 14 September 2019, the EU updated PSD2. Do you know what this means? Is your online shop ready for these new rules?

With the rise in online and mobile payments for anything from pizza, charity donations, software and air fares, the EU has introduced the Second Payment Services Directive (PSD2) to provide more security for payments as well as offer better consumer protection through the introduction of Strong Customer Authentication (SCA), which is an authentication process. This process is what your bank or well-known payment provider has in place to validate the identity of the user of a payment service or of the payment transaction, which you the consumer see every time you make a purchase and probably take for granted now.

From 14 September 2019, the EU updated PSD2 with a provision that requires authentication using at least two of the following three factors: Something the cardholder “knows,” such as a password or PIN; Something the cardholder “has,” such as a token or mobile phone; and something the cardholder “is,” such as a fingerprint or voice match.

These additional layers of security will only benefit the paying end-user further by offering even more robust authentication. All payment providers and subscription-based services (such as software) will have to ‘chip-in’ and be ready to ensure they are compliant. In anticipation of this, for the past six months, CAM has been readying itself for the e-jobsheet platform via the TiDaeX 1st Payment Gateway. This gateway will in time also allow other products and services to be made available for subscription online with full SCA compliance, according to the company.