Canada Payment Services Directive (PSD 2)
The Payment Services Directive (PSD 2) is a directive by the European Union supporting competition in the banking sector.
PSD-2 is part of the Payment Card Industry Data Security Standard (PCI DSS) for financial data security.
To ensure banking activities in the EU proliferate security, the PSD 2 also includes regulations for protecting online payments, enhancing customer data security, and strong customer authentication (eg, multi-factor authentication).
Is Complying with PSD 2 Mandatory?
Yes. All banks and financial institutions in the European Union must comply with the PSD 2 directives.
What are the penalties for not complying with PSD 2?
The penalty for not complying with PSD 2 is a fine of up to EUR 20.000.000 (approx. 23 million USD) or 4% of annual revenue (whichever is greater).