Step 2: Check for PSD2 Exemptions

In this step Thredd checks for the following PSD2 transaction exemptions:

Figure 5: PSD2 Check Step 2 : Determine if any PSD2 Exemptions Apply

The following exemption checks are made:

• Exempt Merchant Category Codes (MCC)1 Thredd only applies the MCC exemption where the cardholder is present (we ignore the terminal unattended status, as this is often incorrectly set by the acquirer). - for example, Commuter Transport and Parking which are exempt from PSD2 for cardholder-present transactions at unattended terminals2 We can optionally configure your programme to apply MCC exemptions to the following: Hotel merchants and Car rental merchants doing PAN key entry or manual or manual, cardholder present (or unknown) transactions.. For details, see Which Merchant Category Codes are Exempt from SCA?

• Transaction is Contactless and the transaction value is under the Thredd Contactless limits

• Transaction is e-commerce and the transaction value is under the Thredd e-commerce limits

• Transaction is a Recurring Payment or instalment payment3 We can optionally configure your programme to check that the original payment was SCA before applying the exemption.

If none of these exemptions apply, then Thredd performs Step 3: Check for PSD2 Acquirer Exemptions.