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PSD2 coming into play on September 14, 2019

I received an email from a client who uses the Eviivo Booking Software regarding the PSD2 changes coming this month.

What does the acronym PSD2 stand for?
Payment Service Directive

What is the PSD2 update do?
This is a mandatory legislative framework, driven by the Card Schemes and Financial Authorities.

Where will these changes this take effect?
Across all countries within the wider European Economic Area (EEA)

Why are we seeing these changes? 
It is aimed at making online payments more secure, and will impact the way consumers buy online and how you are able to charge a guest credit card.

Who is it going to affect?
And this is where it got a bit muddy. The Eviivo email reads:

"This legislation applies when both the cardholder’s bank and the accommodation provider's merchant bank are within the EEA. However, travel is global, and ALL online players will need to adapt their systems. As a result PSD2 is very likely to also affect markets outside the EEA."

So I reached out to a handful of Booking Service companies in the US, and Alfred Aday (Thanks Alfred!) with Think Reservations replied:

"Based on documentation from Braintree Payments, PSD2 only applies if *both* the acquiring bank (the financial institution that maintains the merchants bank account) and issuing bank (the financial institution that issues credit cards to consumers) are located within the EEA."

Therefore this PSD2 update would not apply to Innkeepers that have US based bank accounts.

Which brings us full circle, as I shared this information with the Eviivo client who then went back to Eviivo to get confirmation.  

"Yes, this is correct. That email was sent to all properties in error. You should be receiving a follow-up email shortly apologizing for the error and advising the US properties to disregard it."

Edited 09-13-2019, per further communication from eviivo:  

“As a partner to our innkeepers, eviivo feels it’s important to share information with our customers on a global scale.  eviivo sent the email to all their customers globally to share information about the initiative rolling out across parts of Europe.  While these changes don’t directly impact the US market, it may have long term implications given that most online channels are global.  No action is required of our North America customers and if changes are required in the future, we will communicate right away.”

Additional Resources:  PhocusWire


One thought on “PSD2 coming into play on September 14, 2019

  1. Thank you Acorn for keeping us informed about all the stuff that sucks the joy right out of running your own business! Lol. Ugh! Good news is always welcome!

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