PSD2 and 2FA: what changes for you

PSD2 is the EU’s second Payment Services Directive. Its best-⁠known part is strong customer authentication (SCA). It came into force for online banking in September 2019 and was later extended to online shopping.

What SCA means

• Logging in or paying online requires two factors, for example your password plus a code from an app.
• It’s the same as the two-⁠step authentication you know from Skrill or Neteller.
• Without the second factor, you can’t log in or pay.

What it means for your eWallet

• eWallets like Skrill, Neteller and Payz ask for 2FA at login or for payments.
• If it isn’t set up yet, you’ll be guided through it at your next login.
• Without 2FA it’s much harder to get your money back after a hack.

How to set it up: protect your eWallet and email.

What to do now

Install an authenticator app and switch on two-⁠factor login in every eWallet you use. Keep your phone number up to date in your account, because many providers still send codes by text message. If your provider offers backup codes, store them somewhere safe and offline. Lost or replaced your phone? Contact the provider’s support before you need to log in, so you are not locked out of your money.