New PSD2 regulations and how N26 keeps your online payments secure
Online payment processes are changing from January 15, 2021. Here’s what you need to know, and what they mean for you.
At N26, security always takes top priority and your bank account comes with a number of advanced features to keep your money safe—all in one intuitive, easy-to-use app. With that in mind, we’d like to let you know that from January 15, 2021, the way to make online card payments is changing due to an EU regulation called PSD2. Here’s what you need to know, and what to expect.
What is PSD2, and why does it matter?
Simply put, the Revised Payment Services Directive (PSD2) is the EU legislation for electronic payment services that aims to make online card payments more secure in Europe. It includes specific security measures that both banks and businesses must follow in order to keep your personal data and your bank account safe, and protected from fraud. And now, as part of the PSD2 regulation, two-factor authentication will be required when making online card payments from January 15, 2021.
Should I expect a lot of changes?
In short, not really. All your card transactions will be processed according to the Revised Payment Services Directive (PSD2), which means that you may be required to confirm your online payments with two-factor authentication.
If you’re an N26 customer, two-factor authentication is likely already a familiar process if you’ve ever made a purchase online with your N26 Mastercard. As a reminder, it goes like this: you pay for something online by entering your card details at the checkout, and when prompted to do so, you open your N26 app to tap the payment confirmation pop-up screen. This verifies your purchase within seconds, and that’s it. Easy!
What else do I need to be aware of?
In addition to the above, it’s important to note that these PSD2 regulations apply to both banks and businesses alike. This means that N26 may have to decline online card payments if a business doesn’t have PSD2-compliant payment systems set up. As a result, you may not be able to complete some online payments if the business doesn’t have the proper level of two-factor authentication in place—such as 3D Secure—as part of the online checkout process. This is to ensure the security of your money, and is an important measure to help prevent online fraud.
Do I need to do anything?
No, nothing is required from your side. We just want to make you aware of these upcoming changes, and recommend you to familiarize yourself with these secure online shopping tips to help keep your N26 bank account secure. To learn even more about how to bank safely online and protect your money further, check out our N26 blog.
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N26 gives you the power to effortlessly manage your money on-the-go in real time, whenever and wherever you are. As a leading mobile bank, N26 stays ahead of the curve with innovative security features such as two-factor authentication, 3D Secure and instant push-notifications already built-in to the N26 app for extra peace of mind—even before new regulations such as PSD2 make this a requirement for other traditional banks. At N26, we’ve got your back.
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