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Payment Services Directive 2 – PSD2

What is PSD2?
The Payment Services Directive 2 (PSD2) is a new European Union law which was introduced in January 2018. PSD2 changes will enhance customer protection, offering you greater control over your payments when making purchases and using banking services online. These changes are happening across the European Financial Services industry and will come into effect on 14th September 2019.
What are the benefits of PSD2?
  • Enhanced protection against fraud, making it more secure for you to use electronic services such as buying online and using your online banking service.
  • Innovative ways to pay for goods and services, providing more control and an easier way to manage your online accounts.
What are the changes?
1. Strong Customer Authentication (SCA)
Strong customer authentication is a process that validates the identity of you the user, where a payment service or transaction is taking place.  From September additional security will be applied when making payments or accessing your online banking services thus reducing the risk of fraud.   We will be sending you notifications to confirm that you have authorised payments, logged in or wish to make changes to your accounts.
2. Third Party Providers (TPP)
PSD2 now allows you to use Third Party Providers (TPP) to make payments on your behalf or access your online accounts. Only with your consent can a TPP make payments directly from your online payment account. If you do not want to avail of these TPP services, you do not have to. We will not share your account information unless you have given consent to a TPP.
The services they provide are as follows:
  • Account Information Services Provider (AISP): These services can gather information from all of your online payment accounts and provide you with a single view 
  • Payment Initiation Services (PIS): When shopping online you can allow a Payment Initiation Service Provider (PISP) to initiate a payment directly from your bank account. PISP is an alternative to using your debit or credit card.
What do I have to do now?
You do not need to take any action, the Payment Services Directive 2 (PSD2) does not come into effect until 14 September.