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The Payment Services Directive 2 (PSD2) will be enforced from Sep 14 2019. This European directive requires Strong Customer Authentication and is aimed at reducing fraudulent transactions.

What does it mean for you?

From Sep 14 2019, when you're paying for something online using your debit/credit card, your bank may require you to provide additional security information. It will take the form of something you know (eg passcode or PIN), something you have (eg phone) or something you are (eg fingerprint or facial recognition).

This extra security step won't be applied for Cardholder Present or POS transactions (like in a shop or a garage) or for online transactions less than €30.

What should I do?

First of all, check that the following details are correctly held by your bank. If they're not, then login to your bank account and correct them now.

  • Mobile number
  • Email address
  • Address details

Your mobile phone is very important as security passcodes can be sent as part of the security check while you're completing an online transaction.

If the name and/or address details you supply differ from the bank's details, this can trigger a security check, but that doesn't mean you'll be declined providing you pass the extra security check.

Banks may also ask for this security check on a routine basis, like after every "nth" successful transaction, so it's something we're all just going to need to get used to.

PSD2 has been brought in by Europe's regulators to reduce fraud and make the world of online transactions a safer place to be.