Following the second Payment Services Directive (PSD2), we joined hands with our payments partner, Stripe, to bring in Strong Customer Authentication (SCA) – an extra layer of security for the card payments you make for your Cheqdin subscriptions. The new regulation came into force on the 14th of September 2019 – with all online businesses in the UK expected to be fully compliant by March 2021.


At Cheqdin, our subscription plan payments are processed by our secure payment gateway provider Stripe. When you make a payment using a payment method such as a debit or credit card for your Cheqdin subscription plan, we are required to authenticate the payment. Depending on your bank or card provider, the additional authentication required (to complete your payment) would be via your registered email address, SMS from your registered mobile number or any other method specified by your card issuer. 




What is PSD2?


PSD2 is a new European Economic Area (EEA) regulation that requires a 2-factor authentication from the customer prior to processing a card payment over the internet. Customers will now have to authenticate online card payments using two of the three possible identification traits, which could be:


  1. Something only the customer possesses e.g.) A cell phone or token
  2. Something only the customer knows e.g.) A PIN or password
  3. Something the customer is e.g.) A fingerprint or other biometric element


This strong customer authentication – that goes beyond passwords – has mostly been in use so far to authorise high-risk transactions. With the roll-out of the PSD2 regulation, it will now be a ‘norm’ rather than an ‘exception’ for all businesses accepting card payments online.


Although this means a few extra hoops for the customers to jump at check-out, the additional security step is expected to bring down payment fraud and increase security for online transactions. It also provides the additional benefit of shifting liability to the card issuer (typically the banks) in case of fraudulent transactions.


Our customers can confidently carry out all payments with this added layer of security.