PSD2 payment requirements – make sure you're ready

May 29 2019 | PayPal Editorial Team

New requirements to improve the security of online card payments are coming soon. If your online store or website is not ready, there’s a risk of customers’ payments being declined by the card issuer.
No-one wants to lose a sale or a customer because their payment couldn’t be processed. To avoid this, you may need to take action.
What should you do? The good news is we have a simple guide that gives you the next steps based on how you currently handle payments.

What is PSD2?

PSD2 stands for the second Payment Services Directive and it applies to card issuers across the European Economic Area. It will still apply to the UK after Brexit. Under PSD2 card issuers (that’s banks like Barclays, HSBC, Lloyds etc.) must apply a stronger method of verification, called Strong Customer Authentication (SCA), when processing payments. To make this possible, you may need to make changes to your checkout on your site.

When will this happen?

From 1st April 2019, we expect card issuers to start updating their processes and to apply Strong Customer Authentication to payment requests. The deadline for issuers to be fully compliant is 14th September 2019. You should act now to be ready

What should I do?

If you accept payments online with PayPal, just choose your payment solution below and we’ll help you get ready.

PayPal Pro hosted

With our hosted solution, when a customer pays, a payment page either opens in a separate frame or the customer is redirected. If you use our hosted solution, then we manage your payment process at checkout. We will automatically upgrade the payment process, so you don’t need to worry. But, if you want to know more, visit our PSD2 page.

PayPal Pro direct

If you use PayPal Pro – and accept payments directly on your website – then you will need to update your payment integration so that the card issuer can perform SCA when a payment is requested. Our PSD2 site will guide you through the necessary steps. Click here to learn more.

Want to know more?

If you want to learn more about PSD2, SCA and 3DS, our PSD2 site is a good place to start.

Act now to avoid declined payments

Don’t risk losing sales and customers because a card payment couldn’t be processed. Act now to get ahead of the deadline and reduce the risk of payments being declined.
The information in these articles does not constitute financial or investment advice of any kind and does not count as a substitute for any professional advice. Always do your own research on top and seek professional advice if you want to ensure that what you do is right for your specific circumstances. Where we link to other websites, we can't be responsible for their content.

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