PSD2 Compliance

Learn about PSD2 compliance.

PSD2 (Payment Services Directive 2) is an EU regulation that governs electronic and other non-cash payments. The main provision of PSD2 is Strong Customer Authentication, or SCA—a process that makes online payments more secure by reducing fraud, while increasing authorization rates.

How to be PSD2 compliant?

PSD2 requires that you implement strong customer authentication (SCA) for affected transactions. To meet SCA requirements, you must present your customers with a 3D Secure (3DS) flow when they make an online purchase or authorization. This allows you to authenticate both the customer’s identity and validate that they are the valid holder of the credit card.

You will need to build this additional authentication into your checkout flow in order to continue to process certain transactions where both the issuing and acquiring banks are located in the European Economic Area (EEA)

To know whether your business or your transactions are subject to the PSD2 regulations or not, go to 3D Secure.

For more detailed information regarding PSD2 regulatory, go to PSD2 directives