7 Steps
to getting PSD2 ready

What do I have to do to be PSD2 ready?

What do I have to do to be PSD2 ready?

1. Analyse your business

As the PSD2 Strong Customer Authentication regulations are quite complex, a critical first step is to ensure you have analysed your business to identify key things such as:

    • What are all the ways your customers can pay currently?
    • Where are your customers located?
    • How are your payments being handled today?

You’ll need this information to help you identify any changes you may need to make.

2. Contact your Payment Service Provider (PSP)
Once you’ve a good grasp of how you’re handling payments today you will need to work with your PSP or Payment Gateway and identify what solutions you may need to use to authenticate your payments. 3D Secure  is the new industry standard for card payment authentication.
As well as authentication solutions you will also need to work with your PSP to ensure that your out of scope transactions, such as Merchant Initiated and MOTO transactions, are correctly identified. 

3. Get your message right
Extra security is not a bad thing. Use it to your advantage. Explain to your customers that you have gone the extra mile to make sure their transaction is safe and guaranteed. Trust matters.

4. Be mindful of User Experience (UX)
User experience is a critical component of payment processing. Added friction can cause customer disengagement, drop in conversion and can directly affect your sales. 
PSD2 provides for a number of exemption criteria, such as for low value transactions, where authentication can be bypassed once certain conditions are met. Smart usage of exemptions can help minimize friction and enhance the customer experience.

5. Analyse your performance on any changes made
SCA regulations will have a dramatic effect on the European payment landscape. The industry will adapt and new ways of payment and authentication will emerge. Analyse your own site to see what effect the changes have made. Use your analysis to help you adapt and stay ahead of the curve.

6. Keep Informed
PSD2 is an opportunity. The payments market has opened up significantly in the last 10 years. Very exciting technology continues to emerge. Be ahead of the game and open to new methods of payments. New technologies may pivot your business into new lucrative directions which were previously unavailable to you.  

7. Shop Around
PSD2 is making payments more competitive, transparent and exciting. Providers are spending vast sums improving the customer experience, prices are dropping and more payment methods are being presented to the market.
In a lot of cases User Experience is the key battleground. Now is the time to investigate all that’s on offer.

Get it done as soon as possible
September 14th remains the legal date for when the regulation is adopted. However, regulators, such as the Central Bank of Ireland have confirmed that they will be putting in place roadmaps to full compliance with key milestones in place.

The best approach is to continue working hard to get the right tools and solutions in place to prepare yourself for these regulations and use this added time to ensure you’ve the best user experience possible for your customers.