The impact of PSD2
What is PSD2 and why is it happening?
Studies have shown cybercrime is on the rise*:
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 your business needs to do
Start preparing now to make sure your business is ready for the changes. Issuers in the UK are likely to trigger SCA for 3DS transactions from February 2020.
If you’re not ready, don’t panic. Continue to implement 3DS2 (3DS v2) as quickly as possible and consider Barclaycard Transact for your business. Declines are expected to take effect from September 2021.
Additional measures to take:
- • continue to invest in fraud screening tools
- • review your customer payment journey and operating model – and make sure you know how this will change when SCA is implemented
Key dates to keep your eye on
• 14 March 2020Δ: UK Issuers are required to activate 3DSv2.1. Contactless exemption limits began to be enforced
• Jan 2021: EEA (excl. UK) to begin actively decline non-3DS transactions where exemptions don’t apply
• 14 September 2021†: Issuers will be required to actively decline non-3DS transactions where exemptions don’t apply
*UK Finance publication ‘Fraud the Facts 2019’ and Barclaycard Payment Security Research, YouGov 2019.
**Offer available for customers with card turnover of up to £6.5 million per year. After this time charges will apply, please refer to your terms and conditions. If you have a legacy Smartpay subscription, you’ll be transferred to our latest version.
ΔPotential changes as impacted by COVID-19.
†For merchants trading in Europe, the deadline will be 31 December 2020. The September 2021 deadline applies to merchants who trade in the UK only.