What PSD2 and SCA mean for you as a myPOS merchant
Product News / 07.04.2020
The world of payments is dynamic and diverse, continuously offering improvements that aim to make the life of both customers and business owners easier and more comfortable.
Contactless payments have taken over as a popular way to pay nowadays. The major reason for their popularity is speed, convenience, and security. All you have to do is take out your card or smart device, hold it near the payment terminal until it picks up the signal and you are ready to go – your payment has been made.
If you’re a business owner who appreciates the benefits of contactless payments and enjoys using the service, there are a few things regarding PSD2 and SCA that you should be aware of. If you’re familiar with the abbreviations but aren’t sure what they mean for you and your business don’t worry. We’re here to explain everything!
What is PSD2?
Although running a business usually occupies your thoughts around the payments that your clients make, changes in the payments world have their influence on you as a business owner or merchant as well.
The PSD2 or the second Payment Services Directive is an amendment to a regulation created by the European Union for the first time in 2007. The original PSD was first announced in 2007 when countries from the EU had the objective of offering advancements to a single payment market in the European Union. The ultimate aim was to stimulate innovation, competition, and efficiency.
PSD2 was proposed in 2013 and has been in force since September 14, 2019. The regulation for electronic payment services aims to turn payments in Europe into a completely safe and secure process, support banking services in implementing new technologies and stimulate innovation even further.
What is SCA?
SCA or Strong Customer Authentication is a new requirement for authenticating online payments, introduced as part of the PSD2 in Europe. The concept behind SCA is limiting fraud and creating a safe and secure space for online payments. In compliance with SCA, businesses are required to have in place additional authentication to accept payments.
The requirement is for authentication on at least two of three levels:
- Something the user knows, such as a password or PIN
- Something the user has, such as a phone or hardware token
- Something the user is, using a fingerprint or face recognition
What does the change mean for you as a merchant?
As a merchant, the PSD2 and SCA will bring positive outcomes in the way contactless payments are made, bringing in an extra level of certainty and security.
When making contactless payments with your myPOS Business Debit cards, you will be asked for your PIN in the following occasions:
- Making a single transaction above 50 EUR.
- Making consecutive contactless payments exceeding 150 EUR in total.
The future ahead
With a fast-paced and technologically evolving world as the one we now live in, it is only natural that payments develop and grow to meet expectations and demands. Card transactions have now become a preferable way of paying in Europe and the rest of the world, requiring a new level of protection and guarantee for safety.
As a merchant, your card transactions are now bound to be even better protected than before, meaning there is nothing to worry about when it comes to doing business.
Today, contactless payments are not only convenient and easy to use, but they could also save you and others around you from serious health risks such as COVID-19. Considering that you are now better protected against fraud and card theft, don’t think twice and use contactless payments whenever you have the chance.
Disclaimer: Please be aware that the contents of this article and the myPOS Blog, in general, should not be interpreted as legal, monetary, tax, or any other kind of professional advice. You should always seek to consult with a professional before taking action, since the particulars of your situation may materially differ from other cases.
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