Compliance - Some information you need to know about PSD2
The new rules of the PSD2 Directive ensure more competition and at the same time better protection for consumers. The most significant change is that you will be able to give a company or organisation access to your current accounts.
What is the PSD2?
The revised Payment Services Directive (PSD2) updates and completes the European rules put in place by the Payment Services Directive (PSD1, 2007/64/EC). The PSD2 brings two major changes to the payments industry: It mandates stronger security requirements for online transactions through multi-factor authentication (MFA) and it forces banks and other financial institutions to give third-party payment services providers access to consumer bank accounts if account holders give their consent.
Banks are now required to give authorized third parties access to customers’ online accounts (usually current accounts) and related information. In addition to banks, companies can settle payments for you, check your account balance and retrieve account information. It allows regulated payment service providers to offer new services.
What you can give permission for
You can provide a company or organisation with access to your current accounts, thereby allowing them to initiate payments on your behalf or to view your current account details.
You also have to stay alert for phishing emails. Every change, and now also PSD2, is a reason for criminals to send them.
There are 3 services where you can give permission to another company:
There are 3 services where you can give permission to another company:
1. Viewing your account information and transactions
Access to your transactions from the past 18 months. You might give a third party, such as an accountant, permission to view your account details in order to consolidate your account statements and do your accounts.
2. Submitting a payment order
You can give a third party permission to submit a payment order on your behalf. Or give an online store permission to initiate a payment on your behalf when making a purchase online, for example. The online store then initiates a payment for you.
3. Balance check
Another company can inquire whether there is enough money in your Payment account with Everest to carry out a card transaction.
Important to know when giving permission
- The business or organisation only gains access to your current accounts (not to your investment or other accounts).
- Access to your account details will require strong authentication every 90 days.
After that period of time you’ll have to confirm your permission again. - Businesses and organisations must request your permission for each new transaction.
- And you confirm each transaction using Everest card platform.
What is changing for your business
If you don’t give permission to another company, nothing will change for you.
