PSD2? SCA? Is 3D Print Works ready?
PSD2 and SCA is arriving on 14th September. What on earth is it? Is 3D Print Works compliant? Will my credit card payments be declined?
The first thing to know is that you should not have to worry too much about it - it is all taken care of in the background by online merchants and banks. It is worth knowing about in case your card payments are declined or one of your other payments is affected.
What is PSD2 and SCA?
It is the second Payment Services Directive (PSD2) from the European Union (EU). The aim is to provide standardisation amongst banks and payment service providers throughout the EU. The intention is that the UK will comply with the Directive if / when it leaves the EU.
It will affect all credit card and bank transfer payments that are made online for goods and services which are initiated by customers in the EU (or a Brexited UK). If buying from a merchant outside the EU, their systems will need to be comply. It may also have implications on other payments but we are only concerned here with payments you may make to us.
One of the objectives of the Directive is to make online payments less open to fraud. This is achieved through Strong Customer Authentication (SCA) which is a fancy way of saying that there could be extra identity checks made when you make an online payment.
In many payments, you will be required to provide 2 of 3 pieces of information. The 3 possible elements are:
What only the customer knows - such as a PIN or password
Something the customer has - such as a phone or a token
A part of the customer - such as a fingerprint or facial recognition
Some payments will be "exempt" from both pieces of information, such as some payments which are of a small value. Algorithms and systems running in the background will determine what you need to supply.
Is 3D Print Works Compliant?
Yes we are!
We use 3rd party payment services in our business which have the necessary systems in place. This includes when paying us by credit card over the phone and bacs transfers. We also accept cash payments which do not figure anywhere in SCA!
Will my credit card be declined?
PSD2 and SCA is designed to make payments easier and to take a standardised approach when buying online.
If your card provider and the online merchant have set up their systems correctly, your payment should not be declined. They have been working on this for a couple of years and specifically, should have been rolling everything out since April. Additionally, there will be a few months when both the new and old systems will run concurrently to allow everyone to catch up. The most likely issues will arise for some merchants not based in the EU.
You will start to notice payments requiring additional information (SCA) from 14th September 2019. Like every new technology, it might take us by surprise when we first see it. After a few payments, it will become familiar and second nature.
We are confident that 3D Print Works will make the transition to PSD2 and SCA without any problems. All our staff are hoping that the other merchants we interact with will be equally compliant.