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    Payment Services Directive
     

    Payment Services Directive

    Strong Consumer Authentication (SCA) is being introduced to protect consumers and companies against fraud.This new step requires all e-commerce credit and debit card transactions, where both the merchant’s card provider and the card’s issuing bank are based in the EEA (European Economic Area), to implement an additional security step for customers at the point of purchase. This is mandatory across EMEA (except the UK) from 31st Dec 2020.

    These changes help to verify you are the card owner before making an online purchase. This method of verification requires multi-factor authentication to help ensure your online purchases are secure and protected.All such transactions must be Authenticated by at least two of three below possible factors (each bank will decide how to implement these):1. Something you have (e.g. the credit card/mobile device)2. Something you know (e.g. a pin number/password)3. Something you are (i.e. a biometric ID such as face scan, thumb print)UK Customers - The FCA (Financial Conduct Authority) in the UK has moved the compliance date to 14th September 2021 giving the UK more time to comply with these regulations.

    Can I continue to purchase online?

    There are some simple steps you can take to ensure that you and your business can still purchase online following this legislation change.

    1. Upgrade your internet browser to the latest version. Solution providers are using the latest online security features to make your online journey as secure as possible and old browsers may not be compatible.
    2. Disable pop-up blockers for the RS Components website.
    3. Do not share cards between individuals. Card providers will hold personal details for all credit and/or debit cards, which you may not have access to.
    4. Contact your card provider to add RS Components Ltd to your trusted beneficiaries list, to make your authentication/checkout experience as seamless as possible.
    5. Communicate these changes to all company credit/debit card users so they are aware how authentication will work for online payments in the future.

    What is 3DS?

    Within the cards payments space there is already a scheme in place to ensure SCA called 3-D Secure (3DS). 3D Secure authentication is an additional security layer for E-commerce transactions. Consumers will recognise this as: Verified by Visa, Mastercard SecureCode or Amex Safekey.

    This is the window that appears at checkout after entering card details which may require you to enter a password or a one-time code sent to your mobile phone. To address some of the challenges customers used to face, a new version of 3DS has been released. This should result in a more seamless customer experience and regular, low-risk transactions being authenticated without the need for passwords to be entered.

    All businesses (regardless of size or industry sector) and banks need to comply with this regulation. It will not be affected by Brexit because the regulation has been incorporated into local country law.

    Will this affect me?

    The PSD2 change may affect you when you purchase online with a credit or debit card and may block purchases if you do not know the security details of the credit and/or debit card you are using to purchase online.

    What will change on the RS website when I'm purchasing online?** **

    Your payment journey will be almost exactly the same as it is today, except for one additional step at checkout. A 3D Secure window may be displayed after you enter your card details which could require you to authenticate the card you are using.

    Each bank in Europe is enhancing their 3D Secure strategy as they upgrade to the new version. Your banks pop up window will be visible, and you will be required to enter your chosen piece of security information. This communication will take place directly between the you and your bank - RS Components will not be privy to the data exchanged.

    In many cases, it is likely that card providers will recognise that your purchase with RS Components is within your regular purchasing behaviour and will therefore not require additional authentication. But if they do, you will need to enter the requested information for the transaction to be approved.

    Who do I contact to help me?

    You need to contact your card provider directly for help or to ask them to whitelist RS Components Ltd to stop this happening with any future online purchases.

    What can I do to stop this affecting me?

    Contact your card provider to add RS Components to your trusted beneficiaries list, to make your authentication/checkout experience as seamless as possible.

    We have a Purchasing Manager account, are we still affected?

    Yes, if within your PurchasingManager™ set up, it includes the use of credit and/or debit cards which you may have shared with your end users to use during their online checkout on the RS website.

    The new directive rules of strong authentication will mean that all card users could be asked questions based on the personal details of the card holder. If the card user does not know the answers to these questions, the card will be declined.

    Are any online payments exempt?

    Card transactions below £30 are considered to be low value and are generally exempt from authentication. However, if you initiate more than five consecutive low-value payments or if the total payments value exceeds £100, SCA will be required. Some card types (one-time use virtual cards), AMEX CPC may also be exempt from authentication. Only your card provider will be able to confirm if your cards are in-scope or out-of-scope of this regulation.

    I can't place my order online, what do I do?

    As the change only affects purchases online, you can contact our customer services team on 0800 088 238 who will be able to support you.

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