New security standards for online shopping: Here’s how it impacts you
16.07.2019 Share +
Remember when we told you about the second payment service directive (PSD2) back in March? Probably not. Yeah, we thought so! Legal directives issued by the Financial Regulation Committee of the European Commission, the Governing Body of the European Union, don’t tend to trigger excitement and be particularly memorable. But within the thousands of pages that our lawyers have to read and make sense of, there’re a few YOU, our dear customers, should be aware of.
So, here’s what all this is about. You know that sometimes when you shop online (tickets, food, shoes, whatever), you receive an SMS code that you need to type so that your payment goes through? Yep, we all had this. But the key word here is sometimes.
Effective September 14th, all purchases you make by using your credit card or debit card will trigger that SMS-code. But there’s also one extra step that will truly bring safety to the next level. In addition to the one-time SMS-code you’ll receive on every transaction, you’ll also have to verify your transaction with your biometric ID (fingerprint ID, retina ID, etc). If you don’t have a smart phone or your smart phone is not smart enough to support biometric identification, no worries! You can also use a static password we’ll provide with. What’s a static password? One that stays the same and you use on every transaction.
So, why all this? The short answer is security, security, security. The new security standards, known as SCA (Strong Customer Authentication) want to make sure that, in addition to your credit card number, you also have to provide a piece of information that only you can know. Like the SMS code you receive to your personal phone. Effective September 14th, you'll also have to provide a piece of information that only you possess. Your biometric ID or the static password you’ll get from us is exactly that piece of information.
So, let’s summarize. Right now, when you shop online, you occasionally receive an SMS with a confirmation code to verify your transaction. Effective 14th September, you’ll always receive a confirmation code when you pay online. To verify your transaction, however, you’ll need one more thing: either your biometric ID (for smart phone users) or a static password. The goal is to make online shopping safer and more secure.
When the date starts looming, we’ll remind you. And we’ll also share a few more details. So, stay tuned!