What is PSD2?
The abbreviation PSD2 refers to the Payment Services Directive 2, a directive adopted by European Parliament that seeks to improve consumer rights, promote competition in the banking sector and thereby increase the range of services available for customers. Thanks to the legislative amendments, you may use the applications of players other than your bank in managing your accounts and making payments. The directive entered into force on 13 January 2018 but the changes did not take effect overnight but will be implemented gradually.
It is your decision to adopt new services
PSD2 brings changes and new opportunities to consumers, businesses and banks. The changes will take place over time when banks and other service providers introduce new services on the market.
You decide whether or not to use the new services. We at OP will continue to further develop our services and business after the adoption of PSD2, too, and we aim to guarantee superior customer experience for our customers irrespective of the channel involved.
You have PSD2 to thank for these
PSD2 brought a number of changes that improved consumer rights as early as the beginning of 2018.
- A consumer’s liability for card abuse in the case of minor or ordinary negligence decreased from 150 euros to 50 euros.
- Merchants may no longer charge extra fees for Visa or Mastercard payments.
- Banks shall handle customer complaints within a 15-day period. Thus, if your payment service was interrupted or, for example, you were charged incorrectly and make a complaint, you’ll be contacted within 15 days.
PSD2 entered into force in its entirety on 14 September 2019. This means that as of September 2019 some services provided by banks will no longer be tied to a specific bank but customers can, if they wish, check the balance and account transactions not only in their own bank but also in services provided by other players. It is expected that the adoption of PSD2 will create new payment methods independent of the bank alongside the current credit card and the online payment button. In addition to banks, services can in future be provided, for example, by large companies representing other industries or smaller FinTech players.
To guarantee payment security, legislation places emphasis on KYC related to payment and payment confirmation. This strong authentication, as it is called, is always primarily required when using account details and payment services. This also applies to the bank’s own services. This is how legislation ensures that not only the new service providers but also the banks comply with strict security measures and data security practices so that the customer’s identity and assets remain protected as they are now too.
These changes will ease your day-to-day life in 2019
As of mid-September, you’ll have the following options thanks to PSD2:
- You can use the applications of other banks and service providers to manage your accounts and make payments, if you want. For example, you can opt to use the application of one bank for managing your all your bank accounts even if the accounts were in different banks.
- You can rely on strong authentication being applied to you when you use account details and payment services. Thus, your money will be more secure as each online purchase will require a three-step identification process.
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