Second European Payment Services Directive (PSD 2)

PSD2 is an EU Directive which sets requirements for firms that provide payment services. It aims to improve consumer protection, make payments safer and more secure. PSD2 came into force on 13th January 2018. Individual countries within the EU may have specific extensions related to some aspects of the regulations1 The Financial Conduct Authority (FCA) extended the deadline for enforcing PSD2 SCA requirements in the UK to March 14, 2022.. PSD2 introduced some new requirements for card issuers and processors, such as:

• The requirement for Strong Customer Authentication (SCA) on the majority of e-commerce and contactless payments.

• The requirement for Dynamic SCA Linking - verifying that the details in an authentication session match the details in the subsequent payment authorisation

For the latest rules, set by the European Banking Authority(EBA) see: eba.europa.eu: Regulatory Technical Standards On Strong Customer Authentication And Secure Communication Under Psd2.

For more information on how Thredd performs transaction checks to ensure PSD2 SCA compliance, see the PSD2 SCA Guide.