Payment Services Directive September 14th 2019

Will your ecommerce site still be able to take payments after 14 September 2019?

You may have heard the ads on the radio or received emails from your payment processors about the new requirements for payments arising from Payment Services Directive 2015/2366EU – in short PSD2.  It is important that you act on this, as if you do not it is highly likely that customers will start experiencing problems paying online after the mandatory date 14 September which is just a short time away now.

At present the only information that is required when making an online payment is the credit card number, expiry date and CVV number.  If you are already using 3D secure payments, you may be providing much of this information already. If not you will need to take action.

The new requirements are being introduced to provide greater protection against fraud and are called Secure Customer Authentication (SCA).

The main thrust of the change is that a customer will have to authorise a payment via some third party other than a website, most commonly by entering a code sent as a text message to their phone or a check that their address details are correct as per the credit card billing information.

In order to do this a significant amount of additional information is required by payment processors to be able to deal with these new requirements and your website will have to provide this information and make sure that it is in the correct format prior to sending it to the payment processor.

While smaller payments may not be subject to SCA, if you are taking payments greater than €50 the new requirements will apply.

The following which must be fully correct must be provided by a customer when trying to make a payment:

  • mobile phone number including country code so the user will have to have the ability to receive a text message
  • eircode address
  • card billing address including country

If the above information is not provided or is incorrect it is very likely that payments will start failing authentication and you will start experiencing customer service problems and cash flow issues.

Many payment forms collect much of this data already, but some do not validate the format of the data and many currently do not transmit this data to the payment processor.

If you would like to get your payment process checked, we can recommend a web development company to you so just email us on pm@parfreymurphy.ie.

 

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