BlueSnap’s Compliance With PSD2: How It Works

Written by: Manny Pansa

As a business processing payments online, you’ve probably seen or heard the terms “PSD2” and “3D Secure” being tossed around more than usual lately. But are you clear on how those terms impact you, and what action you need to take? For BlueSnap businesses, the answers to those questions are simpler than they seem. In a nutshell: We’ve got you covered. Keep reading to find out how.

PSD2 Compliance Made Easy

How & Why PSD2 Impacts You

The Payment Service Directive 2 (PSD2) is a new set of regulations pertaining to the European market. It was created to improve the existing EU rules for electronic payments and better integrate payment services across the European Union. Part of that involves increasing the level of protection for consumers when they make electronic payments to businesses located anywhere in the EU.

The new regs also intend to create a “clear and comprehensive set of rules that will apply to existing and new providers of innovative payment services.”

These rules take effect when either a shopper or a merchant is based in the European Economic Area (which includes EU countries and also Iceland, Liechtenstein, and Norway). If you are an EEA merchant or your business sells online to shoppers in this region, your payment process must be PSD2 compliant.

PSD2 Compliance With BlueSnap

If you use BlueSnap for payment processing: No need to worry—BlueSnap is a licensed payment processor.

Keep in mind that shoppers are increasingly using alternatives to credit cards—including ewallets, ACH, and SEPA, all of which are available on our All-in-One Payment Platform. If you’re not already offering these payment options, contact our support team to add them to your account.

If you use BlueSnap for your online marketplace: Because we’re a licensed payment services institution that handles vendor payments for you, our marketplace payment solution also has you covered. We provide compliant marketplace functionality in the same way we do for all online transactions.

What is coming in the future?

In an effort to continually improve the security of eCommerce payments, PSD2 will soon also require EU merchants to implement “Strong Customer Authentication” (SCA), also known as two-factor authentication. An enforcement date for this requirement has not been finalized, but it will likely occur in Q4 2019. Since 3D Secure is already widely used as an authentication technology in the EU and it meets the SCA requirements, it is expected to be an important component of SCA implementation.

When merchants implement 3D Secure as part of their payments workflow, card issuers may verify a cardholder’s identify by having them enter an additional security code during checkout.

BlueSnap merchants can start taking advantage of 3D Secure now, to give their European customers the highest level of protection available. You can read more on our website about how BlueSnap supports 3D Secure.

If you’re already a BlueSnap customer and would like to enable 3D Secure, check out our documentation or contact our Support team to get set up. If you’re not a BlueSnap customer, get in touch today, and we’ll talk about the best way for your business to comply with PSD2.


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