As the final stage of PSD2 approaches, it is important that your business be ready. On September 14, 2019, the key to achieving the EBA’s PSD2, the regulatory technical standards (RTS), must be applied. These changes to payments services and customer accounts require that banks offer customers greater access to their accounts via open APIs. The challenge will be the many interface options and complexity that this open system will create. However, the biggest concern for banks, intermediaries and customers is security.
The final phase of the PSD2 is the introduction of the RTS. These standards mean that strong customer authentication (SCA) add a step to the payments process online. The multifactor authentication process, while providing an additional level of security for payments processing, could have an adverse impact on the customer experience.
3D Secure Version 2.0 is expected to be the main authentication process used online. It is also expected that those businesses that have upgraded their systems to 3D Secure prior to the September 20149 deadline will reduce chargebacks ratios and face a smoother transition to 3D Secure Version 2.0 than those that implement the second incarnation of security technology at the time of the deadline.
There are other factors to consider when introducing the additional layer of security, such as the amount of the transaction, the type and the level of risk. Some of these determinations have been lowered for some payments processors, and it is up to you as a business to ensure that you adherence with the regulations.
For B2B companies, the advance of payments technologies means that doing business has never been so convenient. Sourcing the right payments processor is vital to the continuation of that level of productivity for your company. The regulations are complex, and the best way to protect your business is to ensure that you are working with a payments processor which is transparent about the steps it has taken to understand and adhere to the changes that have been taking place in the past few years.