PSD2 - Strong Customer Authentication (SCA)

The European Union (Payment Services) Regulations 2018 (PSD2) were transposed into Irish law on 13 January 2018 and are applicable to Credit Unions when providing electronic payment services, for example credit transfers, standing orders, direct debits and debit cards.

Introduction

The European Union (Payment Services) Regulations 2018 (PSD2) were transposed into Irish law on 13 January 2018 and are applicable to Credit Unions when providing electronic payment services, for example credit transfers, standing orders, direct debits and debit cards.

Credit Unions (along with other financial institutions) are deemed to be Payment Service Providers (PSPs) and PSD2 places a number of obligations on PSPs like us when we provide payment services.

What is SCA?

SCA is a new European regulatory requirement which is shortly to take effect under PSD2 and is something which we must comply with as a Credit Union.

Its main objective is to reduce fraud and make online payments more secure. Therefore, under SCA, when accessing your account, you will have to authenticate yourself to the required legal standard before completing any transactions online. For example, SCA requires customer authentication based on the use of 2 or more elements below;

One of the above elements is known as single factor authentication. Two of the above elements is known as dual factor authentication.

Sligo Credit Union will use the following dual factor authentication:

  • Pin - Knowledge - something I know
  • Mobile device - Possession - something I have

FAQs

SCA came into effect from the 14th of September 2019.

SCA will be used when you carry out any of the following actions using your online account (the below are examples only and this list is not exhaustive):

  • Accessing your account using PCS, Tablet Mobile, Apps
  • Initiating a payment online
  • Setting up a new payee
  • When accessing accounts at least every 90 days
  • Accessing online account data more than 90 days old
    • Online transactions
    • Statement history
    • Transaction log

In summary, there are a few small exemptions to SCA. Broadly stated examples are:

  • Online payments under €30
  • Payments to existing trusted beneficiaries (i.e. payees’ setup on your account prior to the 14th of September 2019)
  • Credit transfers to self where accounts are held within the same Credit Union
  • Recurring transactions such as Standing Orders or Direct Debits

SCA is a mandatory legal obligation and all online users will be required to complete SCA to the legal standard we require.

To ensure a smooth transition to SCA, check that we have up to date Identification, Proof of Address and Mobile Number for you.

There will be a new version of the mobile app to cater for the changes and you will be prompted to update your app.

Once you are happy that we have your most recent details and accurate Mobile Number, there is nothing for you to do.

For further information please see our Framework Contract and Website Security Terms which govern these types of transactions

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