Extra authentication to SCA with PSD2 14th September 2019
During the past months we have been preparing for the upcoming PSD2 regulation set by the European Union.
We have received news from the OTAs that they will be ready to implement the extra authentication SCA in accordance with the new regulation PSD2 14th September 2019, the date which was originally set, but currently the implementation date is being reviewed and might be extended to give companies time to adapt.
We have been working with our partners and portals/OTAs to implement within our Vacation Rental Management System (VRMS), the different payment methods available for the Property Managers.
Below you will find a brief summary of how some of the mayor OTAs will handle payments from now on having in mind changes related to update of PSD2 14th September 2019:
Online Payment Option
If the guests decide to pay online, Booking.com will take care of the payment procedures and authenticate the payment and the PM will not have to do anything.
But Property Managers will have to activate the online payment option if they want Booking.com to process the payment.
Booking.com will settle the amount of the booking with the agency via bank transfer.
Direct Payment Option
When a guest decides to pay the property directly the extra authentication may apply.
If the guest is charged during check-in or check-out, the extra authentication will not apply since the client is present.
But if the charge is done remotely (ex. deposits, advanced payments and no-shows) the payment will need to be authenticated.
Booking.com will charge the credit card and afterwards enable a virtual card for the agency to collect.
More information from Booking Partner Hub here or by contacting your account manager to ensure the payments in your account are set up accordingly.
Expedia Collect Option
With this option Expedia collects the full amount at the time of booking. When the booking is received the payment method reflected is the Virtual Credit Card (EVC).
The PMs will charge the value of the reservation to Expedia vía the EVC.
Another option will be receiving the amount via a bank transfer or direct debit once the guest arrives.
The PMs will not have to worry about the guest deposit payment with this option.
Cancellation Fee Management Tool
This tool will take care of any authentication issues resulting from penalties charged to the guest due to cancellations or no-shows.
Expedia will receive the payment and capture the necessary information to authenticate. An Expedia Virtual Card (EVC) will be sent to the Property Manager through a booking notification.
The Virtual Credit Card will only be funded after reconciliation. If Expedia cannot charge due to insufficient funds or it is invalid, they will remove the fee and commission charged for the reservation.
For more information visit Expedia Partner Central
HomeAway has integrated third party tokens that will be sent along with the credit card details for the PM to charge the tourist. Depending on the payment processor compatibility, additional SCA may be required or should this not be available, PMs may fallback to MOTO (mail or telephone order) transactions or bank transfer.
Other portals such as Airbnb and local portals will maintain the same payment procedures
We will keep keep you updated with any new information that might come up.
If you want more information on the PSD2 14th September 2019 changes and how the extra authentication works, you can read our blog article here.