PSD2

PSD2 (Payment Service Directive 2) is the new European regulatory framework that governs payment processing and customer security and authentication. PSD2 establishes a European Economic Area (EEA) single market for payments to encourage safer and more innovative payment services. PSD2 mandates Strong Customer Authentication (SCA) for all electronic payments. This requirement affects the way merchants receive payments from customers and how customers are authenticated. PSD2 stipulates that two-factor authentication must be applied for all electronic payments.

Payments taken from outside of Europe do not fall under the PSD2 requirement to

enforce

Strong Authentication. However, as Payer Authentication is a global protocol for authenticating online payments, 3D Secure will still apply regardless of where the payment originated.