PayPal & PSD2

For you as a business a new regulation introduces changes to how you log into your PayPal business account. In order to access your PayPal business account, you will need to ensure you have an up-to-date phone number associated to your account.

Update your phone number

What is PSD2?

The Second Payment Services Directive (PSD2)

This is a new European Union directive replacing the First Payment Services Directive, which regulates payment services in Europe. Part of PSD2 the new security requirements that will impact online businesses accepting card payments.

Strong Customer Authentication (SCA)

PSD2 introduces further security requirements for making electronic payments, accessing your account or making changes to your account in order to reduce the risk of fraud. These requirements, which apply to all countries in the EEA, include strong customer authentication. This is an authentication process that validates your identity when you are using any payment service. We may have to request at least 2 factors of authentication when you make a payment, access your account or making certain changes to your account.

There are three types of authentication:


Knowledge: Something only you know, like a password.


Possession: Something you have like a one-time only code generated by SMS, or a trusted device that you are using.


Inherence: Something that is unique to you, like a fingerprint or your voice.

In many cases at least two of these will be required in order to process a payment.


What changes will I see when using PayPal?

Most of the time, you will be able to log in or pay with PayPal just by entering your email address and your PayPal password as usual. But from time to time, you may require an additional One Time Passcode. If you have a mobile phone saved in your account details, we’ll send the code by SMS and you’ll use it to complete logging in. If you have a landline in your account details, you’ll see the code on screen and enter it into your phone after receiving an automated call from PayPal. This is one of the methods that helps us to identify you if we have doubts about your identity, or if regulations require us to apply two-factor authentication and no other method is available.

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