PSD2 Compliance?

Just had an email from PayPal telling me that my checkout needs to be updated to confirm with PSD2 - whatever that is. Here’s some of the email below:

“As a business accepting card payments, your online checkout will need upgrading to comply with a new European Union directive requiring Strong Customer Authentication (SCA). The directive applies from 14 September 2019, but card issuers are working towards SCA by April so that their systems are fully operational by the deadline.”

“What you need to do?
Because you’re using a PayPal Pro direct solution to accept card payments on your website, you’ll need to update your online checkout to meet card issuers’ PSD2 obligations. We recommend you integrate, test and launch your new authentication processes as soon as possible. Missing the deadline could lead to declined payments.”


Anyone shed any light on this? Thanks.

Comments
  • brettbrett FoxyCart Team
    Hi @Pecan. The short version of this is:
    * PSD2 is a big thing in the EU that'll eventually (potentially) lead to many changes in how different businesses and services can interact with banks on customers' behalf.
    * SCA in the context of PSD2, for all intents and purposes, means 3D Secure v2. Basically, there's new 3D Secure coming, which is great, because the old 3D Secure functionality … let's say it's not really as nice and clean as we'd all hope.

    We'll be focusing on implementing 3D Secure v2 in 2019, as details and documentation becomes available. So you won't have to worry about anything.

    If you're not sure what 3D Secure is, it's the "Verified by Visa" or "MasterCard SecureCode" functionality you may have seen in the past. The promise is nice: It'll shift chargeback liability from the merchant to the bank. We're hoping that v2 works better than v1 has tended to work. :)
  • PecanPecan Member
    Hey Brett,

    Thanks for the explanation. I hated those 3D secure processes - you don't see them around so much now (unless that's just me..) Anyway that's great.
  • brettbrett FoxyCart Team
    I keep this image on my desktop as a reminder of my last experience with 3D Secure. I'm hoping v2 is significantly improved, as the chargeback liability shift for merchants really is great, but the rest of it isn't :)

    image
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