The time has come on March 15th. Then it is no longer sufficient for credit card payments on the Internet, even in Germany, to just enter the card number, the expiry date and the check digit. Because from this point on, strong customer authentication is required, according to European Consumer Center (ECC).
Other EU countries implemented this additional security for customers much earlier than Germany.
Strong customer authentication? What’s this?
In the case of credit card payments, this is proof that you are the actual cardholder and that you are authorized to make payments on the Internet with this card. This is regulated in the European PSD2, the payment services directive.
The PSD2 guideline does not only apply to online credit card payments, but also to transfers on the Internet or the use of payment services such as PayPal. The aim of the guideline is to increase payment security, to strengthen consumer protection, promote innovation and increase competition.
In the future, two out of three factors will be necessary to be able to pay online. The three factors are credit card information, confirmation of knowledge of a password, and inherence, meaning that the user proves something that is specific to the buyer, such as a fingerprint.
When paying by credit card, you can ask for the data as usual and then send a transaction number (TAN) to the mobile phone, which must be entered during the payment process.
Attention: Not all credit cards are activated for this payment method from the start. If in doubt, ask your bank or credit card company.
No rule without exception: When is double authentication not required?
For sums under 30 euros, you can pay up to five times in a row on the Internet without having to authenticate yourself twice. But only as long as the total amount does not exceed 150 euros. Even if the customer informs the bank that a retailer is trustworthy, double authentication can be omitted.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
