What is PSD2?

What you need to know

Rules and regulations can be confusing, so we created this article to help you understand, in simple terms, how the Second Payment Services Directive (PSD2) might affect your day-to-day business. 

The European Union’s revised Payment Services Directive has already come into force, which now means that cardholders will occasionally be prompted for their PIN – even for low-value contactless purchases. This ‘strong customer authentication’ (SCA) is a requirement of PSD2, with the aim to prevent fraud.

How this affects your daily business using Zettle

Accepting payments with your Zettle card reader

Occasionally, a customer might be prompted to verify a contactless transaction – even with lower value purchases. Simply follow the instructions in the Zettle app or on the card reader display.

Good to know: if a contactless transaction for a low value still gets declined, try initiating the payment again, using chip and PIN instead. As always, make sure that you have the latest version of the app installed.


Accepting payments with Zettle E-commerce

You don’t need to do anything if you’re using Zettle E-commerce – we've got you covered with up-to-date authentication methods like 3D Secure.

PSD2 in 60 seconds:

  • PSD2 has been in effect from 14th September 2019
  • Certain transactions may need a two-factor authentication - like your customer entering their PIN for contactless payments, or verifying online transactions using 3D Secure.

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