PSD2: a brief overview

As the Second Payment Services Directive (PSD2) becomes the new reality across Europe, here are the main changes it is driving:

  • External payment service providers are now better defined and regulated.
  • Legal entities applying for a license as a payment organization will have to provide increased documentation describing their payment security measures.
  • More detailed procedures for certification were included to ensure more effective communication and information exchange between EU member states.
  • The PSD2 directive aims to strengthen consumer rights and protection from unfair business practices.
  • Measures to ensure the security of payment and other data were included to protect consumer information. These measures include multi-factor client identify procedures, dynamic operation confirmation codes, personalized client access and security incident reporting.
  • PSD2 clearly outlines the responsibilities of each party in the transfer process.
  • The PSD2 directive prohibits trade and service enterprises from charging customers an additional charge for using credit or debit cards and payment services based on payment orders or payment requests.
  • Finally, PSD2 assigns important roles to the European Banking Regulation and Supervision Agency (EBA). These include: ensuring consistent application and interpretation of the directive, enhancing consumer protection, increasing the transparency of payment organizations and improving the quality of interactions and information exchange between EU member states.