PSD2 (Payment Service Directive 2) and Paypal Update

In autumn, something new .. by the online world. PSD2 is supposed to make the world safer, but also makes it more complicated. And if the banks have misunderstood it, it’s even more complex.

For online shops it means that the payment has to be confirmed again with a “second factor” PSD2 and Paypal update. A password, for example, would be the first factor, a confirmation SMS – transmitted in another way – could be the second one.

However, this is only mandatory for some payment procedures and the simple direct debit booking most often used by our system is not one of them.

Direct debit enables a business relationship with irregular payments. The disadvantages of this booking method can be reduced with certain risk checks.

Paypal

Paypal

Not only because of this reason we have reviewed the Paypal interface. With the update (in most cases) new payment methods are available, e.g. credit cards or sometimes even country-specific payment variants. Since Paypal (in the default setting) itself decides what is offered, this cannot be predicted exactly. One can assume that this selection is also risk-controlled.

If not yet enabled, “Paypal-PLUS” should be activated in the Paypal account. Also further options like payment on account are possible.

In order to use these new options in the shop, you only have to enter the trader ID in the administration area (it was not needed until now). Then some texts are automatically adapted and the new options are available. If necessary you could adapt own texts. The entire billing and chargeback logic with the PCG remains the same.

SEPA

There are also some changes in the shop:

The creditor ID must not only be stored in the PCG but also in the shop. You can find this setting under Settings->Status->Contact. If multiple languages are set, several input fields are also available
The bank data query for new customers and the possibility to enter customer profile data (in the shop under “personal data”) now ask for IBAN and BIC. But the most important thing is the signature – there is a form for this purpose, which the customer has to complete, print and send to you. This will certainly also result in additional work when new customers are added to the PCG.
There is a text field, which is also shown in the SEPA form, if you want to add your own information, e. g.”Our driver collects this form”. To be found under “Settings->Login/Profiles”.
The client’s client reference is displayed in the same profile area, if available.