Top 3 Benefits of PSD2 Compliance Solutions That Your Financial Institution Must Reap

The cases of fraudulent payments are increasing day by day, particularly in Europe and North America.

This is why European Union (EU) has designed Payment Services Directive 2 (PSD2) to produce safer payment services.

The implementation of this directive will benefit not just banks but customers and third parties as well.

But do you know whom to approach for getting PSD2 Compliance Solutions?

Well, you can get in touch with professional fraud prevention companies from the comfort of your couch. 

The experts at these fraud prevention companies are great at offering you robust solutions to reduce your fraud payment issues.

Let’s have a look at three significant benefits of implementing PSD2 compliance solutions in your bank or credit union.

But before that, you need to understand what PSD2 exactly is, ok?

What is PSD2?

PSD2 is short for Payment Services Directive 2 that the European Union issues to produce several safe and innovative payment services.

The implementation of PSD2 compliance solutions promises banks and other financial institutions fewer fraudulent transactions and more secured transactions.

It is a type of legislation which has been to force providers of payment services to enhance customer authentication processes and initiate new regulation related to third-party involvement.

In some instances, fraud prevention service providers also figure out the root cause of malicious transactions and suggest a powerful solution to deal with it.

If you are getting tons of fraud payment complaints every day and are confused about resolving it ASAP, you should not delay a second anymore to reach out to fraud prevention service providers. 

Now let’s see the benefits of implementing PSD2 Compliance Solution: 

1 – Improved security 

The most significant benefit of PSD2 based solutions is that they transform the way merchants accept payments from customers. That means now they will have increased potential to crack down on fraudulent charges. 

That’s not all; for some of the transactions at online merchants, the customers will need to confirm their identity through a two-factor ID requirement.

That means if they fail to prove their identity through valid documents, their payment won’t get approved.

It protects customers from having unauthorized access to their credit or debit cards and benefits banking institutions indirectly.

That means now they won’t have to deal with many fraud payment complaints that they would otherwise. 

2 – Increased customer rights 

The implementation of the PSD2 compliance solution will also enhance customers’ rights in a lot of different ways.

First of all, they would be able to experience improved transparency in the terms and conditions and currency conversions.

Secondly, being an accountable banker, you will be able to resolve complaints at a faster pace.

Thirdly, now you will be able to provide customers with the required funds immediately as soon as you come to know about the final amount of the fraudulent transactions. 

The fourth but most important one is that you can’t add additional charges to customers’ bills on certain transactions.

Doing this will work wonders when it comes to strengthening the relationship between the bank and its customers.

Because as they say – a happy customer is a repeat customer. 

3 – Third-party accessibility

The next advantage of the PSD2 compliance solution is that it will reduce your overall workload.

Now the first question that would have crossed your mind is – how, right?

With the PSD2 regulations, third parties like Amazon will also retrieve customers’ data from your banking institution.

Though it will be done only after getting permission from customers, the load on your banking system will reduce.

The primary reason for that is when third parties will have the customer’s bank account details; then, they can make the payment for customers when they buy something online.

Isn’t it an excellent system? 

The last remarks 

If you can relate to my words, customers are the capital that builds your business.

Be it a bank or a small-sized business, offering customers the convenience or facilities they need will instantly increase their engagement with your business setup and boost their loyalty to your brand.

Once you are successful in earning their loyalty, you will soon see a drastic increase in your revenue generation.

Particularly talking about banks, no customer wants to have an account with a bank that reports a higher number of fraudulent payments, right?

So it’s the need of the hour to take the plunge and partner with a leading fraud prevention company that offers a solid PSD2 compliance solution.

Once you have ensured that your payment systems are safe, secure, and sound, it would be easy for many customers to establish a long-lasting relationship with your bank.

Not just that, they may also ask their friends, family, or other loved ones to visit your bank and avail of essential services. 

 

Tags: PSD2 compliance solutions

Category: Business