Magnetic stripe payments are now history
Stricter rules for card payments and online payments have been applied as of 14th of September 2019. The new EU directives PSD2 on payment services are implemented to increase security and reduce fraud. The first directive came into force in May 2018 but as of September 2019 you can be given a fine if you don’t meet the new requirements.
There will no longer be possible to handle payments with a magnetic strip. However, some card providers and banks will have a transition period when they approve signature payments if the chip is used. Your customers may also need to enter a PIN more often when they make contactless payments on a payment terminal in a restaurant or bar. Online payments will only be possible when using a more secure solutions like a bank ID or a bank card reader.
The purpose of the new safety requirement is (SCA) Strong Customer Authentication, a secure communication to reduce the risk of fraud in EU. In practical terms the SCA means that the customer must identify him or herself with at least two of the following factors in all digital payment:
- Knowledge, a password or a pin code
- Holding, a card or a phone
- Unique property, biometric such as a fingerprint, etc
OPEN delivers payment solutions that fulfill these requirements and are at the forefront of payments methods and functionality.
Do you want to know more? Please contact us for a meeting!