About PSD2 Compliance
This article describes FastSpring's compliance with PSD2 requirements for EU orders.
What is PSD2?
The European Union's second Payment Services Directive (PSD2) is an EU-wide initiative to provide increased security for online shopping through a process called Strong Customer Authentication (SCA). Once PSD2 goes into effect, shoppers with European Union credit cards may be asked to confirm their identity before checking out with FastSpring. It is important to keep in mind that only certain transactions are eligible for PSD2.
FastSpring will ensure that only shoppers attempting an eligible transaction will experience SCA, and only when required. For transactions that are not eligible for PSD2, nothing will change in the customer experience. Here are some important considerations about eligible transactions:
- It only applies to customer-initiated transactions. Subscription re-bills are excluded from SCA, meaning only one-time online purchases or initial transactions of a subscription series are eligible.
- Purchases under €30 are exempt. This exemption is for small-dollar-amount purchases unless there are five or more consecutive attempts that sum over €100.
How is FastSpring Preparing for the Strong Customer Authentication Requirement?
As a Merchant of Record, FastSpring is actively working with our network of payment issuers, acquirers, and processors to ensure we implement the required changes in the optimal way. We are developing a solution that limits the disruption to the customer experience and maximizes conversion rates and transaction success rates while meeting the requirements and sharing the benefits of the directive.
What Do I Need To Do as a FastSpring Client?
Part of the beauty of FastSpring is that we take on all the Merchant complexity related to global ecommerce. As such, FastSpring sellers are not required to take any additional action in regards to the SCA or PSD2.