PSD2: What to do to guarantee secure online payments?
A new European Directive (PSD2) on online payments will come into force on 1 January 2021. What steps should you take as an accommodation owner?
What is PSD2 and when does it apply?
PSD2 stands for Payment Service Directive 2 and is a European directive that will come into force for the hospitality sector from 1 January 2021. The aim is to make online payments safer.
PSD2 states that it is no longer sufficient just to ask for a customer's credit card details when you want to make an online payment. (In the absence of the guest). In order to ensure that you can receive your online payments, you will need to make sure that there is an extra "check factor" with European credit card holders from 1 January.
E.g. Code sent to the guest's smartphone, which must be entered to confirm the payment.
What can I do as an accommodation owner to guarantee that I receive online payments?
STEP 1: Choose a payment provider (PSP)
It is advisable to use a payment provider (PSP or Payment Service Provider) if you offer online payments and want guarantees for no-shows. In this way both you and your customer are assured of a secure online payment.
- Are you using Stardekk Software? Then you can link to the following payment providers: https://cubilis.com/en/connectivity-marketplace-2
- If you work (also) with other partners (OTAs, PMS, ...) please ask these third parties for more information about their solutions concerning online payments.
STEP 2: Activate your PAY CONNECT
Do you wish to connect with a payment provider (PSP) and have you made a choice of partner? Time to activate the connection with this PSP!
To activate a PAY Connect (integration with payment provider), please contact email@example.com. We will help you quickly with the activation.
No guarantees in case of no-shows for online payments without a payment provider.
No payment provider? No payment guarantees.
You can also choose to work in the traditional way and have your guests pay on site at the beginning or end of their stay. This way you do not have to work with a payment provider. A disadvantage here, however, is that you have no payment guarantee in the case of no-shows, as from 1 January there is a chance that you will no longer be able to carry out the online transaction, based solely on the customer's credit card details.
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