What Do You as a Client Need to Know about the PSD2 Directive?

What is the PSD2 Directive?

The amended Payment Services, Services for Issuing Electronic Money and Payment Systems Act (ZPlaSSIED), which entered into force on 22 February 2018, also brought with it the European Payment Services Directive or PSD2.

The two main objectives of the PSD2 are the increased security of payments and the protection of consumers.

What is Defined by the PSD2 Directive?

The PSD2 Directive updates and amends the existing regulations on payment services, expands the scope of payment services and its providers, improves the exchange of information, and introduces stricter security requirements for electronic payments.

 

The PSD2 Directive aims to:  

  • improve the efficiency of the European payment market;
  • ensure the increased security of payments and the protection of consumers;    
  • harmonise operating conditions for all payment service providers;
  • encourage price competitiveness through the innovation of different providers.
What Does the PSD2 Entails for Customers?

The PSD2 Directive will have the most significant impact on retail banking, payment transactions and consumer loans, as well as the digital banking field. As the Directive introduces stricter security requirements, especially for electronic payments, it also provides increased safety and protection for consumers against abuse and various kinds of fraud.  

The PSD2 Directive introduces strong authentication or verification of the client’s authenticity when they access their account online, create electronic payment transactions or perform activities through a remote channel. As stricter safety requirements are introduced, more secure payments are ensured for consumers.

What else is Good to Know?

The PSD2 Directive is bringing an important novelty, i.e. third party payment service providers who may enter the payment market in addition to banks and savings banks. In accordance with the Directive and by following the same rules, third party payment service providers will be able to offer the following services:

  • Account Information Services (AIS) - with the user’s consent, this service enables
    banks and third-party payment service providers access to the user’s account
    balance (the user may access their balance on accounts opened with other banks
    or providers through only one online bank);
  • Payment Initiation Service (PIS) - with the user’s consent, this service enables third party providers (e.g. online stores) access to open accounts of the users at various banks and the payment of purchases using these accounts;
  • Funds Check Service (FCS) - with the user’s consent, this service enables a bank to confirm the available balance on the user’s account to a third-party provider, which is required for the execution of an online payment transaction.
What are Third-Party Payment Service Providers?

Third-party payment service providers are registered payment service providers that have acquired the appropriate permit from the competent body to provide new payment services (account information service or payment initiation service).

These providers may only access the user’s account if they acquire the prior explicit consent of the user regarding the use of data. New players on the market may emerge among new, third-party payment service providers, which will act as an intermediary between the owner of the account and the payment service provider that manages the account, e.g. insurance companies, telecommunication and various financial-technological companies that provide a safe, fast and carefree experience in the world of financial transactions.

What Does PSD2 Mean for the Clients of UniCredit Bank?

PSD2 brings certain changes regarding the use of electronic banking, with the aim of ensuring the increased security of electronic payments and protection against potential abuse and frauds.

Changes regarding singing orders in the Online Bank
 

 
  • Physical token

An additional authentication code must now be entered when signing orders with a physical token.

 

  • Mobile token
    • With QUICK SIGN, you can sign an order in the Online Bank via a push notification that you receive in the  Mobile Bank GO!. There you can review and confirm the order. 
    • With the MOBILE TOKEN signature, you can sign the order in the Online Bank by copying the sum of the order and the IBAN number generated by the Online Bank.

 

Detection of Modified Mobile Devices in the Mobile Bank

If you have unofficial software installed on your mobile phone, a warning regarding the risk posed by such software will be displayed in the Mobile Bank.

Changes regarding signing orders in BusinessNet
 

 
  • Physical token

An additional authentication code must now be entered when signing orders with a physical token.

 

  • Mobile token
    • With QUICK SIGN, you can sign an order in BusinessNet via a push message that you receive in the  Mobile Bank PRO!. There you can review and confirm the order. 
    •  
    • With a MOBILE TOKEN signature, you can sign the order in BusinessNet by copying the sum of the order and the IBAN number generated by BusinessNet.

 

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