Your PSD2 questions answered

The Payment Services Directive 2 (or PSD2 for short), the first directive came out in 2007, is a piece of European Union (EU) legislation that was scheduled to come into force from 14 September 2019. However, the deadline for SCA compliance has been delayed by 18 months. Following the European Banking Authority (EBA) announcement on 21 June 2019, the Financial Conduct Authority (FCA) has now agreed to a phased roll-out plan to move the UK to full compliance by 14 March 2021.

PSD2 aims to make banking safer, more transparent and more innovative. The legislation is being introduced to protect individuals and businesses when they transact online. It also satisfies the need consumers now have for a better, more frictionless online payment journey.

Yes, it will. PSD2 is a new law in the UK, so whatever future relationship the UK has with the EU, PSD2 will still be in force.

One of the new safeguards is called Strong Customer Authentication (or SCA for short). This provides extra protection against fraud when transacting online. Simply put, it asks for two checks when you make purchases over the internet or when you need to service your account online.

PSD2 is an industry-wide directive, which all banks will be obliged to follow. That said, Barclays and Barclaycard have been preparing well in advance to ensure everything is in place before 14 September.

Our aim is to achieve a balance between managing risks and maintaining the speed and convenience that transacting online provides – and customers now expect.

Since 2012, ecommerce fraud in the UK has doubled¹. So new legislation is being introduced to make transacting online safer and more secure.

That’s where Strong Customer Authentication (or SCA) comes in. Put simply, SCA will require an individual to use an additional authentication step to verify online payments or to login to their accounts online. This new step is an addition to the current single authentication layer in place today. It means that online payments and account servicing will be more secure than just using a single element, such as a simple password authentication.

¹ Source: https://www.nao.org.uk/wp-content/uploads/2017/06/Online-Fraud.pdf

When transacting or servicing your account online, SCA will require two things from the following three elements:

• •   something you know – e.g. a password or a PIN
• •   something you have – e.g. a phone or PINsentry card reader
• •   something you are – e.g. a fingerprint or face recognition
  
  
• For example, when paying online, you could use a password (something you know) or your PINsentry card reader (something you have) to authenticate your payment.
  
  It’s a similar process when you log into online servicing. You could use a PIN (something you know) or your PINsentry card reader (something you have) to confirm your identity.

SCA aims to provide greater protection against fraud. Online card fraud is on the rise, and the safeguards within Strong Customer Authentication will give both businesses and consumers greater protection and reassurance.

No one wants to put obstacles in the way of paying. These extra checks will help protect your business from fraud and should, at most, only add a few seconds to your activity.

If your online purchase is considered low value, it’s likely that you won’t need to authenticate your transaction (you’ll be prompted if you do need to). There are also a few other exemptions to needing to authenticate twice:

low-risk transactions
If a transaction, through a real-time risk assessment, is deemed by us to be low risk, an exemption could apply. It’s important to note that this particular exemption comes with a complex set of conditions.

recurring payments
A series of payments of the same value to the same merchant (subscriptions and membership fees) are exempt after the initial set up. The initial set up of the recurring payment will still require authentication, but all following transactions will be exempt.

secured corporate payment exemption
Secure payments which are made through a dedicated payment protocol by businesses will be exempt from SCA.

As Barclaycard is both the issuer and acquirer, we’ll have an unrivalled view of the payment landscape, allowing us to proactively apply exemptions to a large number of transactions.

No, you can’t. This is because SCA is part of new Europe-wide legislation (the revised Payment Services Directive, or PSD2) that changes how people make payments or service their accounts online. The new regulations will apply to all payments, not just those processed by Barclays and Barclaycard.

2FA (it stands for two-factor authentication) is the method used to ensure Strong Customer Authentication.

At the moment, you only use one method (or factor) when verifying an online transaction, such as logging in with a password.

Soon you’ll use two of the following methods when authenticating online – to make doubly sure it’s you. When authenticating, the options available are from:

• 1.  Something you know, e.g:
  Password
• Passphrase
• PIN
• Secret fact
  
• 2.  Something you have, e.g:
  Mobile phone
• Wearable device
• Smart card
• Token

For example, you could pay online using a password (something you know) as you do today, and then authenticate the payment with your PINsentry card reader (something you have).

It’s a similar process when you log in to online servicing. You could use a PIN (something you know) and then confirm your identity with a one-time passcode sent to your mobile (something you have).

No, not every transaction. Thanks to our comprehensive view of the payments landscape, Barclaycard will be able to apply a number of exemptions – based, for example, on the size of the transaction or the potential for fraud. These will be applied automatically, without the cardholder having to do anything.

According to UK Finance’s 2018 half-year fraud report, there were more than a million cases of unauthorised financial fraud in the UK between January and June – a rise of 10% compared to 2017.

The safeguards embedded in SCA will give more reassurance and confidence to both businesses and individuals when buying and servicing their accounts online. There’s also the benefit of knowing your business is much less likely to be caught in fraudulent activity.

There are occasions when SCA won’t be necessary. These include things such as:

1. When it’s low-risk. Some transactions, following real-time risk assessment, will be judged to be low risk.

2. Recurring payments. A series of payments of the same amount to the same merchant (such as subscriptions and membership fees) are exempt, although the initial setup will require SCA.

3. Secured corporate payment exemption. Secure payments which are made through a dedicated payment protocol by businesses may be exempt from SCA. 

In many instances, people buying online won’t notice any difference. On those occasions when it’s required, SCA should only add a few seconds to the checkout time – a small price to pay for the increased safety and security.

Yes, at times they will. You will still be able to make contactless transactions, however you will be asked to enter your PIN more frequently. This is an additional security measure to help better protect against fraudulent payments. 

New legislation being introduced in the European Union (called PSD2) aims to make online transactions and servicing much more secure. As a result of this, we’re sending you a new card which has a new chip with enhanced security features. This will replace your existing card, which you’ll need to destroy and dispose of securely.

Your 16-digit card number will remain the same.

New European Union (EU) legislation called the Payment Services Directive version 2 (PSD2) is being introduced on 14 September 2019. It aims to make online purchasing and banking much more secure. The legislation includes Strong Customer Authentication (SCA), which requires customers to authenticate their online transactions. A PINsentry card reader is a key part of this authentication process.

You can start using your new card straight away – it’s all set up and ready to go. Make sure you dispose of the old card securely by cutting through the chip and magnetic strip. Your old card will become inactive within 30 days of receiving your new one.

The PINsentry card reader will play an important role in helping you to authenticate online, if needed. You’ll be receiving one soon – keep it safe for when it’s needed.

It’s a small handheld device. It uses your card to generate unique eight-digit codes that help you authenticate your identity and transactions online, when you need to. 

New European Union (EU) legislation called the Payment Services Directive version 2 (PSD2) is being introduced on 14 September 2019. It aims to make online purchasing and banking much more secure. The legislation includes Strong Customer Authentication (SCA), which requires customers to authenticate their online transactions. A PINsentry card reader is a key part of this authentication process.

You’ll need to use your PINsenrty card reader to authenticate yourself for online transactions and banking. When you insert your card into the reader, the device will prompt you to enter your 4-digit PIN number. It will then generate a unique eight-digit code for you to use to complete your transaction or log in to your account. A different code will be generated each time you use the PINsentry card reader. 

No. There’s no charge for your PINsentry card reader device.

Yes, you may be sent additional PINsentry card readers for your other Barclays accounts.

Yes, it’ll work with all Barclays Bank accounts. They all have the same functionality so you can use any of them when you need to.

You don’t need to report your device as lost or stolen – just ask us for a new one. There’s no risk of fraud because it’s not linked to your account. You can order a replacement by contacting us on 0800 008 008.

If your device isn’t generating a code, you can get in touch with us on 0800 008 008 or +44 1604 269452 from outside the UK (24/7).

No, you’ll need both your online servicing details and your PINsentry card reader to log in. Please get in touch with us on 0800 008 008 if you need a reminder of your username.

If the batteries in your PINsentry card reader have run low, you can either order a replacement  by contacting us on 0800 008 008 or +44 1604 269452 from outside the UK (24/7) or replace the batteries. Replacing them is straightforward. You’ll need four LR44 (1.5V) batteries and a small screwdriver.

Use the screwdriver to remove the screw on the back of your PINsentry card reader, so you can take off the battery cover. When you replace the batteries, just make sure you put them in the right way up.

Yes, there is. This version of the card reader will give you audio prompts to help you through the authentication process online. If you have received a standard PINsentry card reader but require an accessible version, just get in touch with us on 0800 008 008 or +44 1604 269452 from outside the UK (24/7). as we’ll send you one. 

If you need an accessible version of a PINsentry card reader, please get in touch with us on 0800 008 008 or +44 1604 269452 from outside the UK (24/7) and we’ll send one out to you.

PSD2 will apply to online banking and most global online payments made with a European issuer. Because Barclaycard is a UK card issuer, the new legislation will affect any transaction using one of our cards – even if you live or use it on the other side of the world. In preparation for PSD2, we will be sending you a new Barclaycard.

Your new card has been embedded with an updated Chip which provides you with an extra layer of security for online transactions and servicing. 

Your new Personal Identification Number (PIN) is for use with your new card.  From now on when you use your new card to make in-store payments you will need to enter this 4-digit PIN into the merchant’s card terminal. If the merchant’s card terminal is not PIN enabled, you can still sign for your purchases.  

Using a PIN aims to identify genuine cards and help combat fraud. Your PIN is unique to your new card. When making a transaction, the Chip technology embedded in your card checks the PIN you entered in the keypad against the PIN held on the chip. This verifies your identity instead of checking a signature on a receipt. 

Your PIN will arrive separately before your new card. If you don’t receive it, please call 1-877-821-6566 and let our Customer Services Team know.

It’s on its way and should arrive shortly after you receive your PIN. If your Barclaycard Commercial card doesn’t arrive within 30 days, please call 1-877-821-6566 and let our Customer Services Team know

No, your 4-digit PIN is for in-store payments only and should not be provided to any online merchant. You should ensure you PIN is kept secure and not shared with anyone. 

Once your new card arrives, you need to destroy your old card securely by cutting through the chip and magnetic strip and disposing of it safely. Please bear in mind that your old card will become inactive within 30 days of receiving your new one.

It’s a small handheld device which identifies your card and PIN to generate unique eight-digit codes that help you authenticate your identity and transactions online, when you need to. 

PSD2 legislation includes Strong Customer Authentication (SCA), which requires customers to authenticate their online transactions. At the moment, you may only use one authentication method such as a password to access online banking and transactions. However, SCA will require an additional step and a PINsentry card reader is a key part of this authentication process as it is one of the methods for use with your Barclaycard.

When authenticating yourself online, you’ll need to insert your card into the device and it will prompt you to enter your 4-digit PIN. It will then generate a unique eight-digit code for you to use to complete your transaction or log in to your account. A different code will be generated each time you use your PINsentry card reader so there is no need to remember it or write it down. 

No. There’s no charge for your PINsentry card reader device and it will be sent to you shortly after you receive your new card. Your card, PIN and PINsentry card reader will all arrive separately.