PSD2 guideline: The most important information summarized

The new PSD2 directive has been in force since September 2019. Since then, online banking seems to be more cumbersome than before. In this article you will learn the most important changes.

This is what the PSD2 directive stands for

PSD is a new payment service directive. The abbreviation stands for "Payment Services Directive". It applies throughout the European Union and the European Economic Area. The objectives of the directive are:

1. The EU wants to increase competition across Europe.
2. Consumer protection in online banking and online shopping is to be strengthened.
3. The competitive conditions for payment service providers are to be coordinated. This is how the competition should be increased.

Implementation of the PSD2 directive

The implementation of the new payment directive took some time and was carried out in two stages:

• The first stage came into effect on January 13, 2018. The regulation included, among other things, a regulation to lower the no-fault liability limit for credit card misuse.
• The second stage was realized on September 14, 2019. It included a commitment to strong customer authentication and the opening of payment accounts to third parties. The latter are explained in more detail in the regulatory technical standards of the European Commission.
• The directive is also intended to strengthen financial start-ups. These are known as FinTechs. The advantage is that the banks were obliged to set up interfaces through which third-party service providers can access your customers' accounts.

Consequences of the PSD2 directive for the consumer

There have been some changes for consumers when using online banking.

• If you want to check your finances online, you now have to enter an additional TAN number instead of the usual PIN for online banking.
• Only dynamic TAN procedures are allowed. For example, you need a photo tan app for this.
• When shopping online, you do not have to log into your account separately. Instead, the amount can be transferred using a payment initiation service.
• Despite the cumbersome procedure, you should not demonize the innovations, because ultimately they serve your safety. For example, you are now better protected against fraud in card payments.