PayPal & PSD2

New regulations mean changes are coming to the way you access your account and pay with PayPal.

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. When making a payment, accessing your account or making a change to your account at least 2 forms of authentication are needed.

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.


Most of the time you will be able to login or pay with PayPal by just entering your email address and your PayPal password as usual. But from time to time, we may ask you for a One-Time Passcode that PayPal will send you by SMS on the phone number you have registered in your profile.

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