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On the 14th of September 2019, a new set of European standards and procedures related to online payments, called Strong Consumer Authentication (SCA), is scheduled to come into force. This is the part of Payment Services Directive 2 (PSD2) which is a new European regulation aiming to standardize and improve the security of electronic payments, including online payments.
3D Secure 2 (3DS2) is a new standard for authenticating online payments, which commonly uses additional SMS and/or email authentication for payments, on top of other security measures. It is the most common technical solution for performing Strong Consumer Authentication.
3DS2 selects payments which need additional authentication, based on a variety of different factors, including, but not limited to: value of the transaction, its type, who initiated the transaction, number of payments made with no authentication previously and many more. In addition, different banks and other financial institutions differ on some technical aspects of 3DS2. What is more, national financial regulators in Europe have agreed to a variety of transition periods starting on 14th September 2019, during which they will not enforce 3DS2 fully.
This unpredictable landscape, makes it very hard to create a single set of rules, describing whether any given payment made in relation to using Smily will be subject to 3DS2 authentication or not. However, it is certain that when making payments, you will be required to undergo 3DS2 authentication much more often than before, which will increase the security of the payments that you make.
Despite the complicated regulatory and technical landscape, at Smily we have made preparations to support 3DS2 authentication within all the payment flows you may encounter. For payments which are charged to your credit card - e.g. when charged for a Smily service fee related to AirBnb bookings - you will receive an email prompting you to authenticate the payment with a link redirecting you to an authentication page.
Other fees such as payment gateway fees or booking platform service fees will be charged seamlessly as always. Please see this manual page, to see how the Smily service is invoiced: How is the service invoiced?
Please note: the authentication page itself will be served by the bank or other financial institution which is processing the payment. These are not issued by Smily.
How will SCA and 3D Secure 2 impact my guests?
For a detailed description of the impact of the new regulations on the payments that your guests make please see: How will SCA and 3D Secure 2 impact my guests?