What is PSD2?
The second payment services directive or PSD2 is a European Law which came into effect on the 14th September 2019. It will make it more secure for you to make electronic payments when shopping online or using online banking services.
PSD2 aims to make payments safer, increase consumer protection and continue to foster innovation and competition while maintaining a level playing field for all parties.
While some elements of the PSD2 legislation have applied from 13th January 2018, the full rollout from September 2019 will result in changes to how you use digital payment channels and shop online by introducing added security rules referred to as Strong Customer Authentication (SCA)
What is Strong Customer Authentication (SCA)?
Strong Customer Authentication is the process that validates the identity of you the user when you login to access online and mobile banking and for further services such as making payments or changing your address.
From September 2019, you will be asked for additional security credentials. We will be sending you notifications to ask you to confirm that you have authorised payments, logged in or wish to make changes to your accounts. We will also implement additional fraud prevention measures.
How does SCA work?
From 14th September 2019 when accessing your account online or approving certain actions, you will be required to authenticate yourself using two out of three of the following:
- Something only you know e.g password or pin
- Something you have e.g mobile application
- Something you are e.g fingerprint or facial recognition
When does this come into effect?
SCA comes into effect on the 14th September 2019
Why is this happening?
The second payment services directive (PSD2) came into effect on the 13th January 2018 which contained 12 mandates. One of these mandates covered Strong Customer Authentification, the Regulatory Technical Standards (RTS) which are effective from the 14th September 2019, details how the mandate is to be implemented. Accordingly, all account providers, online retailers etc. are required to comply with these standards.
When is SCA applied?
SCA will be used when you do any of the following actions on your Credit Union online account (CU247)
- Access your account
- Initiate payment
- Initiate an action which may imply a risk of fraud, such as creating a new payee
Can I opt out of using SCA?
No, the EU directive is mandotory and all CU247 users will be required to complete SCA.
What do I need to do?
To make the change easier, check your mobile phone number and personal details are up to date on your CU247 profile or you can call into your local branch in Scariff or Killaloe.