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The impact of PSD2

Are you Strong Customer Authentication (SCA) compliant?

The impact of PSD2 on your business

What is PSD2 and why is it happening?

Studies have shown cybercrime is on the rise*:

  • 3X increase in money taken by ecommerce fraudsters since 2010
  • 59% of all card fraud in 2018 was through ecommerce
  • 43% of customers are concerned about the threat of online fraud to their business
  • 47% of online customers haven’t hit ‘buy’ because of security concerns

To help combat this, changes to the way you take payments and make payments online will be introduced. To be compliant, you’ll need to implement changes to your checkout journey so it’s important that you start preparing operationally and technically now.

What is PSD2 and why is it happening

What your business needs to do

  • Implement 3D Secure – if you’re taking payments using 3DSv1, we strongly recommend that you upgrade to 3DSv2 as soon as possible. Find out how to enable 3DS below.
  • Ensure your gateway can re-route transactions after soft declines – if you receive a ‘Request for authentication’ alert from the issuer, make sure your gateway can re-route it to 3DS (ideally EMV 3DS, or 3DSv2). If you’re not sure, we’d encourage you to get in touch or speak to your payment service provider (PSP) directly as soon as possible.
  • Flag Merchant Initiated Transactions (MITs) correctly – if you need to charge a customer based on a pre-existing agreement, make sure the transaction is flagged correctly to avoid declines. As above, if you’re uncertain, please check this with your PSP as soon as possible.
  • Check if you’re eligible for exemptions – exemptions are compliant ways to bypass authentication if they have low risk of fraud. Learn more about how our Barclaycard Transact solution could help (see below), or check out our FAQs page for the full range of exemption options.

Key dates to keep your eye on

31 December 2020 - SCA enforcement date for EEA

18 January 2022 - UK issuers required to start declining non-secure transactions.

14 March 2022 - SCA enforment date for UK - all non-secure transactions to be declined from this date on

Taking payments?

Get all the info you need from our PSD2 hub, packed with whitepapers and FAQs.

Making payments?

Know the ins and outs of the new regulation with our FAQs and more.

Personal account?

When you’re making payments, know how to confirm it’s you online.

*UK Finance publication ‘Fraud the Facts 2019’ and Barclaycard Payment Security Research, YouGov 2019.
**If you have a legacy online payment gateway subscription, you’ll be transferred to our latest version.
ΔPotential changes as impacted by COVID-19.
For merchants trading in Europe, the deadline was be 31 December 2020. The March 2022 deadline applies to merchants who trade in the UK only.