All you need to know about PSD2

Totally up to speed with the new European payment directive

All you need to know about PSD2

Totally up to speed with the new European payment directive

More than ten years ago, the European Parliament launched the first Payment Services Directive (PSD1) to ensure a more uniform payments market within the European Union.

Much has changed since then in terms of technology, but also consumer behaviour. The European Parliament consequently thought it was high time for an update. To prevent misunderstandings about the new EU Payment Services Directive (PSD2), here's what it's all about.

What is PSD2?

Like PSD1, the revised and updated Payment Services Directive (PSD2) creates a legal framework for simpler, faster, and more secure payments in the EU. But what does that mean in practice? 

1. Opening up account information

The most profound change is that banks have to open up account information to recognised third party providers. Companies (not only banks) will therefore be able to carry out payments for you, check the balance on your account and extract your account details.

An example could be third parties like Payconiq asking to connect to your KBC Brussels account. If you agree, Payconiq can access your account information to provide services for you. 

That might raise your eyebrows, but there's no need to worry. Consumers have total control over whether to share account information with other parties. We will never share your data without your approval.

What's more, you can stop access at any time.

KBC Brussels is the first bank in Belgium to give you the option of viewing details and balances of any current accounts you hold at other banks in KBC Brussels Mobile. Find out how easy it is

2. No more surcharges

Thanks to PSD2, surcharges can no longer be applied for certain payment methods. Online shops may no longer charge a little extra if you pay by credit card.

3. More payment security

Today you can pay for things in many new and different ways. Fingerprint and facial recognition technology are just some of the innovations in the world of payments. Until now, there was no EU regulatory framework for it. PSD2 introduces new and stringent rules to make payments safer and more secure.

How will this affect you?

Apart from the benefits given above, little will actually change for you. You still have control and you decide who can access your data

When giving access to your account, we recommend that you always check whether the party requesting access is trustworthy. Stay alert for phishing e-mails. Criminals can possibly use PSD2 for fraudulent purposes.

Why is PSD2 being introduced?

The first payment directive (PSD1) dating back to 2007 already created a legal framework for a uniform payment market in the European Union. It provided new rules for direct debits (such as IBAN and BIC) and payments using debit and credit cards. 

However, due to the introduction of many new technologies and changing consumer behaviour (like online shopping), PSD1 is due for a very much needed update.  

The European Union therefore wants to boost recent innovation and attract more players to the market, without compromising consumer protection and security.

Other questions

Who is affected by the second Payment Services Directive (PSD2)?

PSD2 applies to virtually anyone needing to pay or wanting to receive money, including consumers, businesses, banks and payment institutions. PSD2 regulates, for instance, payments in shops and online purchases.

A third party does not need to be a financial institution to be able to access your account information.

To whom do I give permission to access my account information?

If a third party wants to access your account balance and/or your transactions, you must naturally give your consent first to that party. With your permission, the third party will access your KBC Brussels account information.

If a third party wants to ask KBC Brussels whether a certain amount is available on your account, you have to give permission to KBC Brussels to share this information.

Which services can a third party request access for?

With your consent, a third party may:

  • Retrieve the account balance and/or corresponding transactions
  • Initiate a bank transfer
  • Ask if a certain amount is available on your account

Could a third party retrieve my account information without my consent?

As customer, you decide for yourself whether or not you want to give third parties access to your KBC Brussels current accounts.
If you want to effectively give access, you'll need to sign for this via KBC Brussels's digital channels.
We will then clearly inform you what you're giving permission for. If you wish, you may refuse any request for permission by a third party and cancel the access granted at any time via KBC Brussels's digital channels.

Where do I give permission for access to my account information?

You give permission in the KBC Brussels digital channel that you use to consult your accounts or register transfers.

What happens if I don't consent to a request for payment by a third party?

It's the third party's responsibility to see whether it can propose other payment options. A third party isn't obliged to offer additional payment options.

What measures are being taken to ensure secure and reliable payments?

KBC Brussels ensures that if a third party is permitted access to your account information, it will do so securely and reliably every time.

  • We always check whether the third party is approved by the National Bank of Belgium.
  • For each request to access to your account information, we make sure that the third party involved is one that you've given permission to do so.
  • We also ensure that communications between KBC Brussels and the third party are conducted securely. If you need to sign, we use KBC Brussels's digital channels which are secure and reliable.
  • With any new request for access to your account information, you give your permission as customer by signing. You can also refuse such new requests. Without your consent, a third party will have no access to your account information
  • Should you no longer wish to give access, you can cancel any access granted via KBC Brussels's digital channels.
  • In addition to complying with the PSD2 regulations, KBC Brussels will continually ensure that everything is handled securely. If we notice anything suspicious, access will be denied.

Can a third party use my account information for other purposes after I have given consent?

Your consent as customer doesn't mean that third parties may use your account information for other purposes. The rules on privacy protection continue to apply. The third party may only use your account information for disclosure to you alone. If the third party wants to use your account information for other purposes, they must ask your permission.

I have power of attorney for a KBC account. A power of attorney is personal and non-transferable. Given this, may I give permission for account information to be shared with third parties?

Under your current power of attorney, you – as an agent holding power of attorney – may not share account information with third parties. For you to be able to do so, the principal must grant you specific authorisation. You can find out more about this at your KBC Bank branch.

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