Full rollout of European law, PDS2, will provide better protection for electronic payments and reduce fraud by introducing enhanced security steps
Banking & Payment Federation Ireland (BPFI) has today launched a public awareness campaign aimed at promoting awareness and understanding of the new aspects of PSD2 to be fully rolled out by 14th September 2019. The upcoming changes aim to enhance security for electronic payments and provide opportunities for new market participants.
The second Payment Services Directive or PSD2 is a European law which comes into full force on 14th September that will make it more secure for consumers to make electronic payments when shopping online or using online banking services.
The increased security measures, known as ‘Strong Customer Authentication’ will see some changes to how customers log onto their online banking service or make an online payment using their credit or debit card. The changes will vary across individual banks but will generally take the form of an additional security step before customers can access their online accounts or complete some online payments. Consumers may also encounter an additional security step before completing a purchase when shopping online. This will generally take the form of a security code sent directly to their mobile phone.
Speaking at the start of the week-long campaign to highlight the upcoming changes, Gill Murphy, Head of Payment Schemes, BPFI said:
“Over the coming months consumers will start to notice changes in the form of enhanced security steps as they go about accessing their online banking services and shopping online. It is important to remember that they are being introduced right across Europe to help counter fraud and make online payments more secure by providing better protection for consumers and their online accounts. Payment Service Providers must ensure compliance by September 14th next with the security standards outlined in PSD2. In preparation for this BPFI member banks are currently contacting their customers to explain what they can expect. As the changes can vary from bank to bank, it is very important that customers take the time to read the information they receive carefully.”
In addition to enhancing security, PDS2 will also introduce what is known as Open Banking. This will allow Third Party Providers or TPPs to securely provide consumers with some new services. An example of these services would include paying directly from a bank account as an alternative to a debit or credit card when shopping online. Open Banking also allows for account information services such as providing consumers and businesses with a single view of their online banking accounts across different institutions. As these new services become available consumers should be assured that TPPs can only access their accounts with the explicit consent of the account holder. TPPs will be regulated in a similar way to banks.
The current BPFI campaign, which consists of a number of elements including radio advertising and social media outreach, is the first of two campaigns running this summer to highlight the upcoming changes. Consumers wishing to find out further information should contact their bank or log onto www.mypsd2.ie
Note: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland and the Fintech & Payments Association of Ireland, BPFI has 100 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.
Contact: Jillian Heffernan, Head of Communications, firstname.lastname@example.org 087 9016880