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Spotlight on ...

WHAT’S NEW IN

EU E-COMMERCE

PAYMENTS?

Text: Alan Rhode, Co-Founder Taxmen

Starting from 2018, the gradual implementation of the Payment Service Directive 2 ((EU)
2015/2366), known under the acronym “PSD2”, is making e-commerce transactions easier
and safer for consumers. At the same time, the new set of rules places new administrative,
technological and economic burdens on online merchants. From the new “strong customer
authentication” (SCA) to the tighter PSD2 regulations for marketplaces, it is extremely

important for digital players to be constantly up-to-date with EU and national laws
concerning online payments.

ew “strong customer authentication” (SCA) Th e new rules mean that customers will no longer be able to
From the new “strong customer authentication” (SCA) checkout online by using just their credit/debit card data: customers
Nto the tighter PSD2 regulations for marketplaces, it is will be required to provide an additional form of identifi cation.
extremely important for digital players to be constantly up-to-
date with EU and national laws concerning online payments. Th e independent authentication factors should include two out
of the following three factors:
New “strong customer authentication” (SCA) • Something customers know (for instance, a password or PIN);
From 14 September 2019, European merchants will be required by • Something customers have (for instance, a device or credit card);
law to provide card issuers with two “independent authentication • Something customers are (for instance, a fi ngerprint or other
factors” from customers for online transactions to be approved. biometric).

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