PSD2 & Strong Customer Authentication

What is PSD2 and SCA?

On the 14th September 2019, new requirements for authenticating online payments will be introduced within Europe as part of the Second Payment Services Directive (PSD2).

PSD2 is set to bring major changes that will impact online payments, including subscription-based services that trigger automated charges to your saved cards. Included in these changes is Strong Customer Authentication (SCA), which is designed to reduce fraud and make online payments more secure.

To handle payments once SCA comes into effect, we have built additional authentication into our checkout flow. However, from the 14th September onwards, your bank may choose to decline any automated charges unless you re-authenticate your saved card using this new process.

3D Secure 2 is the newest and most secure way of processing online transactions. It will become the main method for authenticating card payments and meeting the new SCA requirements, as outlined above. This new version provides a much better user experience and will help to reduce some of the friction that authentication usually adds into the checkout flow.

What does this mean for me?

You may notice that our attempts to charge your saved cards will fail. If this is the case, it can be easily resolved by heading over to the Plans & Billing section within the app, where you will see a notification regarding unpaid invoices. From there, you can manually complete payment and update your saved card details (if needed).