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About PSD2 Compliance

Overview

This article describes FastSpring's compliance with PSD2 requirements for EU orders.

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 ensures that only shoppers attempting an eligible transaction experience SCA, and only when required. For transactions that are not eligible for PSD2, nothing changes 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 actively works with our network of payment issuers, acquirers, and processors to ensure we have achieved the optimal implementation of the required changes. We have developed 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 regarding the SCA or PSD2.

More Information

For more information, please see our blog posts regarding PSD2:

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