{"id":6651,"date":"2025-07-15T02:58:12","date_gmt":"2025-07-15T02:58:12","guid":{"rendered":"https:\/\/buvei.com\/blog\/?p=6651"},"modified":"2025-07-16T08:02:20","modified_gmt":"2025-07-16T08:02:20","slug":"psd2-secure-payments-buvei-virtual-cards","status":"publish","type":"post","link":"https:\/\/buvei.com\/blog\/psd2-secure-payments-buvei-virtual-cards\/","title":{"rendered":"Understanding PSD2: Secure Payments &#038; Virtual Card Advantage"},"content":{"rendered":"<div data-page-id=\"QEG7dU65mov7JaxCT6slq9D7gUd\" data-lark-html-role=\"root\" data-docx-has-block-data=\"false\">\n<h3 class=\"heading-3 ace-line old-record-id-DQBWd357ioH9p3xJ0qIlJi89gcb\">What is PSD2?<\/h3>\n<div class=\"ace-line ace-line old-record-id-Jj17d17IfopeNXxpgW0l6jbSg4f\">The <strong>Second Payment Services Directive (PSD2)<\/strong> is a landmark EU regulation that came into force in 2018, designed to revolutionize the payment landscape across Europe. PSD2 aims to:<\/div>\n<ul class=\"list-bullet1\">\n<li class=\"ace-line ace-line old-record-id-J8xIdkiE6oUyKkx33SslEgXCgPf\" data-list=\"bullet\">\n<div>Promote <strong>open banking<\/strong> by mandating banks to provide access to customer account data to authorized third parties through APIs.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-In26dsqOpo6W3fxHirEl72cwgqe\" data-list=\"bullet\">\n<div>Enhance <strong>payment security<\/strong> with Strong Customer Authentication (<a href=\"https:\/\/buvei.com\/blog\/what-is-sca-strong-customer-authentication\/\">SCA<\/a>).<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-AKJ5d2pM2orN0QxwJ2jltc8ogwd\" data-list=\"bullet\">\n<div>Foster <strong>innovation<\/strong> and competition by allowing fintech companies and payment service providers to operate on a level playing field.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-E05ldpm9XorYgZx9zBNl55CegHb\" data-list=\"bullet\">\n<div>Protect consumers by limiting surcharges and improving transparency.<\/div>\n<\/li>\n<\/ul>\n<h3>\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6653 size-large\" src=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-1024x579.png\" alt=\"\" width=\"1024\" height=\"579\" srcset=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-1024x579.png 1024w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-300x170.png 300w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-768x434.png 768w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-400x226.png 400w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-800x452.png 800w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-832x470.png 832w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1-1248x705.png 1248w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage1.png 1472w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/h3>\n<h3 class=\"heading-3 ace-line old-record-id-EMgLdtQ7koLFlfxQkKRllollgYr\">Key Components of PSD2<\/h3>\n<ol class=\"list-number1\" start=\"1\">\n<li class=\"ace-line ace-line old-record-id-G9SFd4x66opBF3xKVNslXs4IgJe\" data-list=\"number\">\n<div>Open Banking and API Access<\/div>\n<\/li>\n<\/ol>\n<div class=\"ace-line ace-line old-record-id-ItvadjQz9oinghxuHWIl290Agig\">PSD2 requires banks to open their payment infrastructure to <strong>Third-Party Providers (TPPs)<\/strong> such as:<\/div>\n<ul class=\"list-bullet1\">\n<li class=\"ace-line ace-line old-record-id-QnWSdMyrmoNE5xxJf7hlxLG9gge\" data-list=\"bullet\">\n<div><strong>Account Information Service Providers (AISPs):<\/strong> Access customers\u2019 bank account data with consent.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-VnipdCsopo4KVVxoDKZlXPyIgGy\" data-list=\"bullet\">\n<div><strong>Payment Initiation Service Providers (PISPs):<\/strong> Initiate payments on behalf of customers directly from their bank accounts.<\/div>\n<\/li>\n<\/ul>\n<div class=\"ace-line ace-line old-record-id-ArexdYN4to5utyxZJKslBdnSg1g\">This shift enables new financial applications to emerge, offering users consolidated account views, automated payments, and enhanced financial management\u2014all securely and transparently.<\/div>\n<ol class=\"list-number1\" start=\"2\">\n<li class=\"ace-line ace-line old-record-id-SHc3dn0Qnoo4LGxdjcAl22uAglc\" data-list=\"number\">\n<div>Strong Customer Authentication (SCA)<\/div>\n<\/li>\n<\/ol>\n<div class=\"ace-line ace-line old-record-id-OxZ4dmlnQoh3FkxJgh0lYWliglh\">To reduce fraud, PSD2 mandates that most electronic payments undergo <strong>Strong Customer Authentication<\/strong>, requiring at least two of the following:<\/div>\n<ul class=\"list-bullet1\">\n<li class=\"ace-line ace-line old-record-id-EU2Gd4qFQoP1YdxiHvClQ7Svg5f\" data-list=\"bullet\">\n<div>Something the customer <strong>knows<\/strong> (password, <a href=\"https:\/\/buvei.com\/blog\/credit-card-pin-security-guide\/\">PIN<\/a>).<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-YTAidZKNRogOF1xDpmolbGLEgLf\" data-list=\"bullet\">\n<div>Something the customer <strong>has<\/strong> (mobile device, hardware token).<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-DE6LdxU6coffLdxGsBJlWIzug3b\" data-list=\"bullet\">\n<div>Something the customer <strong>is<\/strong> (biometric data such as fingerprint or facial recognition).<\/div>\n<\/li>\n<\/ul>\n<div class=\"ace-line ace-line old-record-id-WQEpdIZN7ooTlvxFTaXlKzlFgOL\">This ensures that online transactions, account logins, and payment method additions are securely validated.<\/div>\n<\/div>\n<div>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6652 size-large\" src=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-1024x579.png\" alt=\"\" width=\"1024\" height=\"579\" srcset=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-1024x579.png 1024w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-300x170.png 300w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-768x434.png 768w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-400x226.png 400w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-800x452.png 800w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-832x470.png 832w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3-1248x705.png 1248w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage3.png 1472w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/h3>\n<\/div>\n<div data-page-id=\"QEG7dU65mov7JaxCT6slq9D7gUd\" data-lark-html-role=\"root\" data-docx-has-block-data=\"false\">\n<ol class=\"list-number1\" start=\"3\">\n<li class=\"ace-line ace-line old-record-id-OSdxdc35eodypyxWky4lTnqLgbk\" data-list=\"number\">\n<div>Ban on Surcharging<\/div>\n<\/li>\n<\/ol>\n<div class=\"ace-line ace-line old-record-id-XugIdQUEYoKKA0xH3TDlj1PLg5b\">Merchants are prohibited from charging additional fees for payments made with credit or debit cards covered under PSD2, ensuring a fairer, more transparent payment experience for consumers.<\/div>\n<h3 class=\"heading-3 ace-line old-record-id-GyDXdXMgjomKvixd0xuls7oTg7y\">Why PSD2 Matters for Virtual Cards and Buvei<\/h3>\n<div class=\"ace-line ace-line old-record-id-F55SdxdBYoas2Cx54a7l9y04gmb\">PSD2 sets a new standard for payment security and transparency, creating opportunities and challenges for payment providers.<\/div>\n<ul class=\"list-bullet1\">\n<li class=\"ace-line ace-line old-record-id-WV87drvP7oiT5Cx7IBMlPDbFgdf\" data-list=\"bullet\">\n<div><strong>Compliance and Security:<\/strong> Buvei\u2019s platform supports dynamic authentication methods and API-driven control flows that align with SCA requirements.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-HUKfdGjbHowZ1bxeFuAl0CoZgqb\" data-list=\"bullet\">\n<div><strong>Programmable Payments:<\/strong> Through Buvei\u2019s<a href=\"https:\/\/buvei.com\/developer\"> API<\/a>, virtual cards can be issued with custom<a href=\"https:\/\/buvei.com\/blog\/payment-authorization-logic-guide\/\"> authorization<\/a> rules that reflect regulatory demands and user profiles.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-KbaodlJDho0V0sxHkxNlffN3gCb\" data-list=\"bullet\">\n<div><strong>Risk Reduction:<\/strong> Virtual cards with merchant locks, spending limits, and real-time revocation capabilities help mitigate fraud risks heightened by open banking.<\/div>\n<\/li>\n<\/ul>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6655 size-large\" src=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-1024x579.png\" alt=\"\" width=\"1024\" height=\"579\" srcset=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-1024x579.png 1024w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-300x170.png 300w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-768x434.png 768w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-400x226.png 400w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-800x452.png 800w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-832x470.png 832w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2-1248x705.png 1248w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/07\/Understanding-PSD2-Secure-Payments-Virtual-Card-Advantage2.png 1472w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/h3>\n<h3 class=\"heading-3 ace-line old-record-id-SEU6do2lnoHxIPxGC04lSwP2ghf\">Looking Ahead: PSD3 and the Future of Payments<\/h3>\n<div class=\"ace-line ace-line old-record-id-MoAqdbnEFos0BHxR9ytlQuVfgze\">PSD2 is not the end of payment regulation evolution. The European Commission is already working on <strong>PSD3<\/strong>, which aims to address new challenges such as:<\/div>\n<ul class=\"list-bullet1\">\n<li class=\"ace-line ace-line old-record-id-RS3ad1Le4oGq6Cx1OQClJwVTg2f\" data-list=\"bullet\">\n<div>Further improving customer authentication processes.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-QK84dDVkuoNRWHx4l0YlGJ20gAe\" data-list=\"bullet\">\n<div>Enhancing consumer protections.<\/div>\n<\/li>\n<li class=\"ace-line ace-line old-record-id-NqJedyqTVo5jB6xjO1ulcVDMgbc\" data-list=\"bullet\">\n<div>Streamlining regulatory requirements for emerging technologies like crypto payments.<\/div>\n<\/li>\n<\/ul>\n<div class=\"ace-line ace-line old-record-id-CSNpdy2eJowGWixzy3dlinqqgSc\">Buvei is committed to staying ahead of these changes, ensuring its platform remains compliant, secure, and cutting-edge.<\/div>\n<h3 class=\"heading-3 ace-line old-record-id-GQABdY8Ueo7019xD6Uxl9pIKgPd\">Conclusion<\/h3>\n<div class=\"ace-line ace-line old-record-id-PDcVdGqPPooefexUyJilR3h6gJe\">PSD2 has fundamentally transformed the European payments landscape by enforcing open banking, mandating strong authentication, and fostering innovation. For companies and developers building payment solutions, understanding and integrating PSD2 requirements is critical.<\/div>\n<div class=\"ace-line ace-line old-record-id-Jt6xdG8XGo9hlMxrpnBlTfNlgzg\">With Buvei\u2019s programmable virtual cards and API-first approach, businesses can confidently meet PSD2 compliance while offering flexible, secure, and scalable payment options.<\/div>\n<div><a href=\"https:\/\/buvei.com\/vcc\">Get started with Buvei virtual cards now<\/a><\/div>\n<div><a href=\"https:\/\/www.buvei.com\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-4750 size-large\" src=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-1024x307.png\" alt=\"\" width=\"1024\" height=\"307\" srcset=\"https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-1024x307.png 1024w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-300x90.png 300w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-768x230.png 768w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-400x120.png 400w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-800x240.png 800w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-832x249.png 832w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2-1248x374.png 1248w, https:\/\/wordpress.buvei.com\/wp-content\/uploads\/2025\/06\/Buvei-2.png 1442w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"What is PSD2? The Second Payment Services Directive (PSD2) is a landmark EU regulation that came into force&hellip;","protected":false},"author":2,"featured_media":6654,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":""},"categories":[7],"tags":[67,225,3151,2392,618],"class_list":{"0":"post-6651","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-affiliate","8":"tag-buvei","9":"tag-payments","10":"tag-psd2","11":"tag-secure","12":"tag-virtual-cards","13":"cs-entry"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/posts\/6651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/comments?post=6651"}],"version-history":[{"count":0,"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/posts\/6651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/media\/6654"}],"wp:attachment":[{"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/media?parent=6651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/categories?post=6651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buvei.com\/blog\/wp-json\/wp\/v2\/tags?post=6651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}