{"id":5003,"date":"2019-08-26T09:57:35","date_gmt":"2019-08-26T07:57:35","guid":{"rendered":"https:\/\/www.jimdo.com/blog\/?p=5003"},"modified":"2020-10-02T10:28:38","modified_gmt":"2020-10-02T08:28:38","slug":"eu-regulation-online-shops-psd2-sca","status":"publish","type":"post","link":"https:\/\/www.jimdo.com/blog\/eu-regulation-online-shops-psd2-sca\/","title":{"rendered":"New EU Regulation for Online Shops: PSD2 and SCA Explained"},"content":{"rendered":"
Editor\u2019s note<\/strong>: This post was originally published on May 3rd, 2019 and has been updated for accuracy.<\/div>\n

The GDPR<\/a> may still be fresh in people\u2019s minds… but that\u2019s last year\u2019s news. Now there’s a new regulation in town: the PSD2 (or Payment Services Directive 2).<\/p>\n

The ecommerce sector has been growing steadily for years so the EU is updating its regulations to match. The new PSD2 is meant to create fairer competition between traditional banks and modern payment service providers (such as PayPal). That includes Strong Customer Authentication (SCA), which means two-factor authentication for online purchases. And the good news? If you run an ecommerce business, this new provision means better cross-border security for you and your customers.”<\/p>\n

The most important thing for you to know is that all Jimdo shops are prepared for the changes taking place from September 14th, 2019<\/strong>.<\/p>\n

In this article, we\u2019ll briefly summarize and explain exactly what will change for customers and your online store!<\/p>\n

Please note<\/strong> that this article does not constitute legal advice, even if a legal issue is covered. For legal advice, we recommend contacting a legal expert.<\/div>\n
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In this article we\u2019ll answer:<\/p>\n

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  1. What is the PSD2 and the SCA?<\/a><\/li>\n
  2. What exactly changes when making a payment?<\/a><\/li>\n
  3. Are there exceptions to the two-factor authentication rule?<\/a><\/li>\n
  4. Why is SCA being introduced for online commerce?<\/a><\/li>\n
  5. What does SCA mean for your online shop?<\/a><\/li>\n
  6. What effects could the PSD2 and SCA have?<\/a><\/li>\n
  7. PSD2 summary<\/a><\/li>\n<\/ol>\n

     <\/p>\n

    What is the PSD2 and the SCA?<\/h2>\n

    The Payment Services Directive 2 (PSD2) is a “Payment Services Directive” of the EU. It replaces the previous directive and puts different rules in place for payment service providers like PayPal and Klarna. These rules apply to the banks and payment service providers, so shouldn\u2019t be a cause for concern for online shop owners like you.<\/p>\n

    Part of this is Strong Customer Authentication (SCA) and that\u2019s where it gets interesting for shop owners. The SCA determines that from September 14th, 2019, anyone who pays online must use two-factor authentication.<\/p>\n

    What does that mean exactly?<\/p>\n

     <\/p>\n

    What exactly changes in the payment process?<\/h2>\n

    Up until now, anyone booking a holiday online could pay using just their credit card and security number. Or you could pay on a platform like PayPal by entering a password. Now you\u2019ll need a second security factor to complete your payment.<\/p>\n

    Buyers now need two of these three factors to pay:<\/p>\n