International Payments: Streamlining Payment Security In the EU

Tuesday, June 18th, 2019

The alarming expansion of eCommerce and its popularity in international markets calls for payment security compliance among merchants and other key industry players if we are going to trade safely.

Companies eyeing European markets in a bid to explore global marketplaces must now comply with the several regulatory changes made recently.

The talks that triggered the new laws began with a group of payment experts at the 2019 CNP Expo in San Francisco.

During the Expo, the industry leaders discussed Payment compliance among European countries with respect to the following;

• PSD2 (the second Payment Services Directive)
• (3DS 2.0) (the newly rolled out 3-D Secure authentication), and;
• GDPR (the General Data Protection Regulation)

The second Payment Services Directive (PDS2)

The PSD2 is particularly loved for its dependable customer verification. But the notion that tweaks need to be made for every transaction that occurs in the European Union can be overwhelming.

In an attempt to clear the air, one of CNP’s Vice Presidents explained that “The acquiring and issuing platforms must both be within the EU to be impacted by the second Payment Services Directive (PDS2).”

3-D Secure authentication (3DS 2.0)

Meanwhile, 3DS 2.0, the means through which a merchant and the card issuer exchange info before authorization, is becoming of critical importance.

“Looking at the cross-global payments environment, we predict a 23% increase in sales, 25% increase in international declines and a16 percent rise card-not-present fraud,” says Kevin Crockett, senior director of GCS.

GDPR

Soon, GDPR will be marking a year since its launch and some firms have done their math and feel that they can gamble on the risk of incurring fines for failing to comply, a move which Huff has warned about.
GDPR, like other privacy policies, is in a person’s right to be forgotten because this could leave a loophole for fraud.

“In a fraudster’s mind, they can violate the “right to be forgotten.” Criminals using fraudulent credit cards know retailers link use integrated tech so they can call in as an EU buyer and say, “I’m not willing to disclose my details,” said Ajay Guru, Owner of Savant Intuition.

Wrapping Up

As a merchant, it is vital to adhere to all payment security regulations so that you don’t carry accountability in the event of fraud.

You also want to protect your customers so that they don’t always blame your business for losing their confidential data to cybercriminals.