Payment Services Directive 2

Payment Services Directive 2

As you might be already aware there are changes to legislation around payments and transactions due to come into force across the UK and Europe on 14th September 2019. These changes are covered under the Payment Services Directive 2 (PSD2) and that might result in changes to the way you process all the electronic payment transactions.

This affects all business types and we are just passing this on to you to make all of our partners aware.

What is Payment Services Directive 2 and why does it matter?

Payment Services Directive 2 (PSD2) is a set of regulations relating to online and electronic payments, due to come into force across the UK and Europe on 14 September 2019. It will be adopted by the United Kingdom irrespective of whether, or when, the UK leaves the European Union.

What will PSD2 involve?

  • Strong Customer Authentication (SCA) – two factor customer identification
  • Open APIs from all European Economic Area (EEA) banks to support
    o direct from account payments
    o access to account information
    o confirmation of available funds


Banks must refuse any transactions which are not PSD2 compliant from Saturday 14 September 2019 onwards. Merchants cannot, for example, just accept liability and not undertake SCA.

Where and when does it apply?

  • All payment transactions that start and end with a merchant in the EEA,
  • Both credit and debit cards
  • Any remote electronic payment or account access
  • Face to face payments and e-commerce payments


It does not cover:
• Telephone based transactions (to a call centre)
• Paper initiated transactions (setting up a direct debit)
• Instances where either issuer or merchant is not in EEA
• Direct carrier transactions where amount is under 50 Euro, or total in a month is under 300 Euro (for example where charges are made to a phone account when an app is bought)

This is an EU initiative, and therefore for more details please go to

Rail Delivery Group Travel Agents Team

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