PSD2: Do you know what it is, and is your company ready?
A Revised Payment Service Directive (PSD2) rolls-out next month. But, are you ready?
PSD2 will improve the security of payments and account access for those who have a European banking centre. But don’t worry, we’ve got you covered!
What is PSD2?
PSD2 is the second iteration for Payment Services Directive, originally adopted by the European Union in 2007. Consequently, payments will be more secure after this roll-out on September 14th.
The two-factor authentication (think 3D Secure) will be used for certain transactions to be processed successfully. This applies to all card payments, including B2B, B2C, and any form of ongoing subscription.
More security and transparency will be added to purchases, reducing the chances of unauthorized transactions.
Will this this affect payments?
It’s not scary; it’s just about ensuring that the user authorizes the transaction.
This only applies to those that have banks located in Europe. Remember, each bank will choose their own authentication method. Consequently, there is little control as to what the process looks like yet.
The two-factor authorization could happen in a number of ways. This includes; PIN or password, SMS confirmation, or even fingerprint confirmation are just some of the possibilities.
Make sure your company is PSD2 compliant and ready to make payments as of September 14th, by contacting your payment processor.
Is this affecting ProdPad users?
ProdPad is becoming PSD2 compliant, to make sure the payment process is as easy as possible. Although, existing subscribers might be asked to re-authenticate.
Banks haven’t said which options they’re planning to select. However, we’re working to reduce any subscription issues to make it more straightforward. Ideally, try contacting your bank or payment provider to learn about the processes they’ll be setting in place. You can also whitelist ProdPad to approve your ongoing subscription payments.
Please contact email@example.com to discuss this further.