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. Making accounts available

The most profound change is that banks have to make customers' payment accounts (usually current accounts) that can be accessed online – and the information on them – available to recognised third party providers. Companies (not only banks) will therefore be able to arrange payments for you, check the balance on your account and extract account details.

Example: third parties like Payconiq can now ask to connect to your KBC account. If you agree, Payconiq can access your account to provide its services to 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 also ensures that you can view details and balances in KBC Mobile of any current accounts you hold at other banks in KBC Brussels Mobile. Find out how easy it is

2. No more surcharges

PSD2 prohibits payees (merchants, online stores, etc.) from levying surcharges for the use of certain payment methods. For instance, online shops may no longer charge an additional fee if you pay by credit card.

3. More payment security

Today you have many new and different ways to confirm your electronic payment instructions, such as using your fingerprint or face recognition when making payments from a mobile app. However, no European directives existed to cover these techniques. 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?

Today you have many new and different ways to confirm your electronic payment instructions, such as using your fingerprint or face recognition when making payments from a mobile app. However, no European directives existed to cover these techniques. PSD2 introduces new and stringent rules to make payments safer and more secure.

Is third-party information provided by KBC as easily and quickly accessible as its own information through its digital services?

Check back here soon to see how fast and easy we make it to access our and third-party information.
 

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 is the responsibility of the third party to propose other payment options. However, it is under no obligation to offer such additional options. Instead, you consent to this in the KBC Brussels digital channel that you use for viewing your accounts or registering transfers.

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 to see whether the third party is approved by the National Bank of Belgium.
• For each request to gain access to your account information, we make sure that the third party involved has received your 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 secure and reliable digital channels.
• For each new request to access your account information, you – as the customer – give your permission to do so by signing. You can also refuse such new requests. Without your consent, a third party will not be able to access your account information.
• You are free at any time to cancel any access granted by using 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, we will deny access.

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

Giving your consent as a customer does not mean that third parties can use your account information for other purposes. The rules on privacy protection remain in force. Third parties may only use your account information for disclosure to you. If they want to use it 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?

Giving your consent as a customer does not mean that third parties can use your account information for other purposes. The rules on privacy protection remain in force. Third parties may only use your account information for disclosure to you. If they want to use it for other purposes, they must ask your permission.

Is a SEPA credit transfer carried out from a third party's app also treated as an instant credit transfer?

Usually it is. In any case, we will endeavour to process your transfer as fast as possible. Learn more about sending money instantly.

I'm trying to transfer money, but get a message that my daily limit has been exceeded. What should I do?

If that happens, you need to sign your transfer instructions using your debit card and card reader.
If you don't have them to hand, save your transfer in your remittance folder in KBC Brussels Mobile and sign it later. Don't wait too long, because payment instructions remain in your remittance folder for just a limited time.

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