PSD2 (Payment Services Directive)

The Payment Services Directive 2

The Payment Services Directive (PSD2) is a new law within the European Union that was introduced in January 2018. These changes are designed to benefit customers by enhancing transparency, giving you greater control over your data and will further protect your banking and purchases online.

Strong Customer Authentication (SCA)

Strong customer authentication (SCA) is the process that validates the identity of you the user when you log in to access online and mobile banking, and for further services such as making payments or changing your address.

How does SCA work?

Authentication is required using two out of three of the following:olbar.

• Something you know

  i.e. password or PIN

• Something you have

  i.e. mobile application

• Something you are

  i.e. fingerprint or facial recognition

Why is this happening?

The second Payment Services Directive (PSD2) came into effect on the 13th January 2018 which contained 12 mandates. One of these mandates covered strong customer authentication, the Regulatory Technical Standards (RTS) which details how the mandate should be implemented. Accordingly, all account providers, online retailers etc. are required to comply with these Standards.

When is SCA applied?

SCA will be used when you do any of the following actions on your cuOnline account:

• Access your account

• Initiate a payment

• Initiate an action which may imply a risk of payment fraud, such as creating a new payee

Can I opt out of using SCA?

No, the EU directive is mandatory and all cuOnline users will be required to complete SCA.lbar.