Monday , October 18 2021

Payments online are promising


After that, you will no longer need to use a payment card or UPN form or money order, but you will be a PIS service provider after ...

You will no longer need to use a payment card or UPN form or money order, but the PIS service provider, upon prior consent and authentication of the payer, will be able to access his account himself and order a payment. (Photo by Jaka Gasar)

The revised European Payment Services Directive (PSD2), which made it possible to expand innovative services for the benefit of the end user, came into force last January. September 14 is the end of the transition period for the introduction of two new services and the implementation of technical standards, which include, in particular, measures for secure communication and better authentication or authentication of the payment service user (SCA).

More complete authentication of the payer

Thus, the authenticity of the payer must be based on two or more elements that fall into the categories of knowledge, ownership and indivisibility of the attribute with the holder. The payment service provider will need to verify it in accordance with the principles: something that only the user knows (password, PIN), something that only the user has (smartphone or other mobile device) and something that is only consumer (biometric data, such as fingerprint, retina or iris, face).

Exemptions from such certification are low-value payments of up to $ 30, or up to five consecutive smaller payments, or more payments of up to $ 100. Thus, it is up to the payment service provider to decide when re-authentication is required. According to some proposals, the exceptions also apply to multiple payments of the same amount and payments to trusted beneficiaries.

Access to payment ordering services

The new form of payment service, called the payment initiation service (PIS), will also come into effect in mid-September. This will mean that online payment will no longer require the use of a payment card or UPN form or money order, but that the PIS service provider, who may also be an online merchant, will have access to the user's account and order a prepayment consent and authentication of the payer.

Another new feature will be the provision of Account Information Services (AIS). Only banks will no longer monitor customer data, as they will have to share it with third parties if the customer agrees. All individual bank accounts will be in one place.

A person who has accounts opened with different banks can now view them only through the application of the respective bank. It will then be able to merge everything into one application of the selected AIS provider. This will allow you to see all your bank transactions in one place. on

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