There has been a lot of talk lately about the PSD2 scheme. What does this new payment law actually mean?
European payment law
PSD2 is an abbreviation for the English term Payment Services Directive 2. Loosely translated, this means Revised Payment Services Directive 2. With these new European regulations, consumers and businesses have more options for payment transactions. Since 14 September 2019, all Dutch banks comply with PSD2.
Payment account access
PSD2 gives parties such as web stores access to your payment account. They can then, for example, directly collect the amount of money from a purchased product. In fact, it is an additional payment method. Think of it as an alternative to iDEAL, PayPal or a credit card.
Of course, all this is not easy. A company will only be able to access your account if you give permission to do so. In addition, the company requires a license from De Nederlandsche Bank or another European regulator.
Account Information
Thanks to PSD2, companies can also request account information from the past eighteen months. Mortgage lenders, for example, map out a home buyer’s financial household. They see, among other things, the balance and purchasing behaviour.
The parties do need a permit for this. Another condition is that the account holder has permission. Consumers give a company one-time or 90-day access to account information.
Pay in two steps
An additional safety aspect has been laid down in PSD2. For a purchase of 31 euros or more, two-step verification is required. For example, if someone orders something from a webshop, simply entering a password is no longer sufficient. The customer usually still has to confirm the order with the banking app on a smartphone, for example via a pin code or finger scan. Learn more about two-step verification here.
Consequences for privacy
Fortunately, consumers do not notice much of the PSD2 scheme. Does a company request access to your checking account or account information? Then think carefully whether you want that. The companies learn all kinds of things about you on the basis of depreciation. For example, they see which political party you are a member of and which stores you buy something from. If you don’t give permission, that won’t change anything. You do not need to take any action.