with a better browsing experience; allow us to assess, monitor, and improve the website’s
performance; and enable our partners to advertise to you. You may disable the cookies by changing
the settings in your browser, and you may tell us not to share your cookie data with third parties.
Fraud in remote payments, such as online transactions, has long been a concern. PSD2 looks to tackle this through better authentication of activity where there is a risk of fraud; such as making a payment or changing account details. Responsibility for payment security must be managed by payment service providers. PSD2 mandates the use of strong customer authentication as the means to do this. Strong customer authentication means that customers must authenticate their identities using two factors, each from a different category from the below:
Meeting the requirements of strong customer authentication means that consumers will frequently be asked to perform additional steps or provide additional information — adding friction to the customer journey. Customers don’t like delayed or difficult processes and PSPs who fail to handle the process well could lose customers.
There are two ways in which payment service providers can take the steps required by PSD2 while also protecting the customer experience. They can either use permitted exemptions to reduce their need to perform strong customer authentication or they can orchestrate strong customer authentication in a way that limits negative impacts on a customer’s journey.
Payment Services Directive 2, or PSD2 as its better known, involves a lot of acronyms and new terminology. These terms can be both difficult to understand and easy to forget! To help you keep all the terms and their definitions to hand we’...
European politicians have not failed to notice that levels of fraud have been increasing despite industry initiatives to stop its growth. The second Payment Services Directive (PSD2) comes into force in January 2018 and places the accounta...
One of the key aims of PSD2 is tackling fraud — particularly fraud related to remote payments; for example, those made online. Card-not-present fraud has plagued the industry since the introduction of chip and PIN caused fraudsters to swit...
The second Payment Services Directive, better known as PSD2, is set to change the payments landscape, and Payment Service Providers (PSPs) will have to change with it. Those that implement PSD2 well are likely to retain existing customers ...