By the end of 2020 payments will need to comply with the new PSD2 regulation. Learn more about the requirements and get started.
What is the objective of the new PSD2 regulation?
To protect electronic payments from fraudulent activities while providing trust and security to customers.
What does this new regulation imply?
The new regulations oblige us to perform enhanced client authentication (SCA). This authentication process serves to determine that a client is who they say they are. The verification will be supported by the protocol 3DS V2.
What is the 3DS V2?
The method of client authentication where businesses and their payment provider can send more data elements on each transaction to the cardholder’s bank.
If the data is enough for the bank to trust in the cardholder, the transaction will go through frictionless and no extra authentication will be required.
On the other hand, if the data is not enough for the bank, the transaction will go through the authentication flow. The cardholder will be asked for at least two of these three elements:
- Something he/she knows, like a password
- Something he/she owns, like the cell phone
- Something that’s part of the person, like the fingerprint
In some cases, exceptions can be used that will make authentication unnecessary.
What are the main exceptions?
- Low-value transactions
- Recurring transactions, subscriptions, installment payments, etc.
- Creation of white lists for reliable recurring customers
- MOTO transactions
- Cross-border transactions
- And others…
What do we recommend from Easy Payment Gateway?
- Always make decisions based on real data. The PSD2 indicates that any fraud committed as a result of an exception will be assumed by the merchant.
- This new regulation is a great opportunity to increase your conversions while reducing fraud.
- Improve your customer experience.
How can you improve the customer experience?
The card issuers and acquirers will decide in real-time which customers should perform the 3DS V2 authentication. To do this they will need to know a number of parameters about your customers. The more information you provide, the less 3DS V2 authentications and therefore, the more agile and satisfactory purchase processes for your customers. All this will improve your conversion without losing the security of your payments.
What are the parameters I have to provide?
Parameters such as delivery or user account data will be requested. All of them are optional, but from Easy Payment Gateway we recommend that you provide them. See the list of parameters and get started.
What are the benefits for your customers?
At Easy Payment Gateway we encourage you to talk to your customers. Reducing fraud is important to everyone, so 3DS V2 authentication should be understood as a benefit rather than a nuisance.
Fill out the form and we’ll be in touch as soon as possible
Your data will be treated by Easy Payment Gateway with the sole purpose of responding to your query or request. Data collected will be retained until your browsing session ends, except where it concerns data collected for marketing or analytical purposes. In that case your data will be kept in our systems for a year. Your data will not be forwarded to any third party. You can exercise your rights of access, rectification, opposition, deletion, portability, limitation and also to be subject to automated decisions in our email compliance@easypaymentgateway.com. You can expand our information on data processing in the link to the Privacy Policy.