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Online shopping: rules for paying by credit card are becoming stricter

2020-12-28T14:22:53.516Z


When criminals steal credit card information, it can easily be used to spend a lot of money online. Stricter rules should make this more difficult. They are now gradually arriving in people's everyday lives.


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Paying by credit card over the Internet: The rules are changing

Photo: Christin Klose / dpa

At the beginning of the coming year, consumers will have to get used to stricter security regulations when paying on the Internet.

By mid-March 2021 at the latest, it will no longer be sufficient to simply enter the card data for online payments by credit card, as was often sufficient so far.

Customers then have to prove in another way that they are the legal owner of the payment card - for example by password or by entering a transaction number (TAN).

The new requirements are particularly strict for credit cards, as the numbers and check digits of these cards can be spied out relatively easily, for example when used in restaurants.

The duty of “strong customer authentication”, which is part of the so-called “Payment Service Directive” (PSD2), has actually been in effect since September 14, 2019 for every payment in online banking and when shopping on the Internet.

But because some providers have problems implementing this two-factor authentication, there has already been a delay from the financial supervisory authority Bafin - until the end of 2020.

According to the previous planning, the new rules should take effect on January 1, 2021.

But the Bafin grants another grace period.

A tiered model now applies: From January 15, payments of 250 euros or more must be approved with two independent factors; from February 15, two-factor authentication takes effect from 150 euros.

The rules are to be applied in full from March 15th.

"Dealers are also dependent on the preliminary stages"

"We want to enable those involved to safely start up their newly implemented systems," a Bafin spokesman justified the renewed postponement shortly before Christmas.

Experience has shown that when new IT systems are introduced, there are often start-up difficulties.

According to the Bafin, banks and credit card providers have completed their tasks: "As far as Bafin is aware, the payment service providers have completed their implementation work on the use of strong customer authentication for card payments on the Internet," the spokesman said.

The online trade is still working on closing technical gaps.

"However, retailers are also dependent on the preliminary stages, that is: on their own service providers, the acquirers, but also on the card issuers and their handling of the new procedures," says Ulrich Binnebößel from the HDE trade association.

"Last but not least, the cardholders must have activated their cards and be ready to use two-factor authentication."

Exceptions are possible

In view of the new rules, banks and credit card companies have developed a so-called 3D secure process.

The implementation is slightly different depending on the card-issuing bank: Some customers receive a one-time TAN to approve online payment via SMS to a telephone number stored in advance at the bank.

Other banks can confirm the purchase via a special app by entering a secret number or by taking a photo of a barcode.

Biometric methods such as fingerprints or facial recognition for approving a payment with two factors are also technically possible.

According to the Federal Association of German Banks (BdB), whether the additional approval is necessary for every purchase depends on the decision of the bank from which a customer has his payment card.

For example, if a customer buys more often in the same online shop, a financial institution could forego the need to approve the payment there with two factors every time.

The two-stage process of strong customer authentication could also be dispensed with for payments under 30 euros.

Icon: The mirror

mbö / dpa

Source: spiegel

All tech articles on 2020-12-28

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