The purpose of PSD2 (the Second Payments Service Directive) is to make payments easier and safer in the European Economic Area (EEA) by bringing more parties into financial services and payments by telling banks they have to share their data with these third parties. With bank data, companies can offer a whole host of services to consumers, making it easier for them to pay for things. For example, consumers could give a chatbot permission to make payments on their behalf, or authorise their favourite webstore to show their bank balance on the checkout screen when shopping. A key part of this is, of course, ensuring payments are safe and fraud is prevented. According to PSD2’s security measures, the Strong Customer Authentication (SCA) rules, consumers are obliged to verify their purchases with an extra verification step (for instance with a phone, PIN code or fingerprint). The SCA comes into place on September 14th, 2019.
You, as a merchant, won’t notice much of this, Mollie ensures that the payment methods comply with the guidelines of the SCA. For example, Mollie currently supports 3D Secure 1.0, a two-factor, SCA-okay authentication method, for Visa, Mastercard/Maestro and American Express cards. In addition to supporting the first version of 3D Secure, at Mollie we have measures in place to enable 3D Secure 2.0 for Visa and Mastercard/Maestro, which also allows for the use of biometric data (such as a fingerprint or facial recognition) as a security step.
Read more about how SCA exactly works and what it means for you in the article ‘What PSD2’s Strong Customer Authentication Means for Mollie Merchants’.