FAQ

EBA and the European Commission granted no further postponement of the 1 January 2021 deadline because of COVID-19.

For online card transactions support of 3DS is required. Although individual transactions may not require 3DS under certain circumstances (exemptions), all merchants doing business with European cardholders will need to support 3DS transaction flows in order to secure continuity of their business.

A Merchant Initiated Transaction is a transaction submitted by the payee (such as an online store) to the issuer without the involvement of the customer (the cardholder). This is possible, for example, if the merchant is authorised in advance by the cardholder to make the payment at a later time. For example monthly automatic payments of subscriptions.

A soft decline is the response an issuer may give to an authorization request that does not carry authentication data. For a successful transaction, the merchant must re-submit the transaction with SCA.

A legacy transaction is a card payment done the old way, without strong customer authentication (SCA).

These are the authentication protocols used for authenticating online card payments. Currently, three versions are relevant: 3DS1.0, EMV 3-D Secure version 2.1, and EMV 3-D Secure version 2.2 (or EMV 3-D secure 2.1+ but only for Mastercard). The latter version supports SCA exemptions.

Exemptions for Strong Customer Authentication (SCA) are listed in the EBA’s SCA RTS. For the purpose of online card transactions, the most relevant exemptions are LVP (low value payments) and TRA (transaction risk analysis). Unlike out-of-scope transactions, requested exemptions do not guarantee that authentication can be skipped.

The LVP exemption can apply to transactions for amounts up to €30. Further the cumulative amount of LVP exemptions may not exceed €100 and/or the number of consecutive LVP exempted transactions may not exceed 5. If above conditions are fulfilled the issuer may grant a LVP exemption.

The TRA exemption can apply to transactions for up to €500, subject to certain fraud performance requirements for the acquirer or issuer involved in the transaction. EMV 3DS authentication enables the issuer to gather data to evaluate transaction risks. The exemption request will be either granted or denied on a per-transaction basis by the issuer.

Four categories of payments are out of scope:

1. Mail Orders and Telephone Orders (MOTO). A MOTO transaction is not electronically initiated by the cardholder and for this reason out of scope. The merchant or his processor provides within authorization correct data codes that clearly identify the transaction as MOTO.
2. Merchant Initiated Transactions (MIT). Since the cardholder is off session, the cardholder cannot authenticate himself. For this reason these transactions are out of scope. However, SCA is needed for the set-up of the MIT agreement.
3. Non EU/non EEA payments. If an issuer or acquirer resides outside the EEA, SCA is not mandatory.
4. Anonymous prepaid card payments.

Strong Customer Authentication (SCA) gives issuers a number of well-defined options to waive the need to apply two-factor authentication (2FA) where the transaction is seen as low-risk according to objective criteria. In these cases, the issuer will decide on a per-transaction basis if SCA can be waived.

In other cases, SCA does not apply. These transactions are known as out-of-scope.

The PSD2 rules for Strong Customer Authentication require online payments to be approved with secure two-step verification. Only in specific well-defined cases issuers can waive this requirement for individual payments (exemptions). Furthermore, some categories of online card payments are out of scope.

Strong Customer Authentication (SCA) is already mandatory for all electronic payments since 14th of September 2019. For online card payments SCA compliance is enforced as of 1 January 2021. Online card payments without SCA are rejected by card issuers from 2021 onwards unless an individual payment qualifies for exemption.

SCA means Strong Customer Authentication, also referred to as two-step verification or two-factor authentication (2FA). Under PSD2, in principle all electronic payments must be approved by the customer by means of SCA as detailed in the EBA RTS on SCA and CSC. In daily practice, this means that the customer must approve a payment using two secure and independent factors, such as, for example, a personal bank card combined with a secret PIN code. Or, for example, a registered app on a personal smartphone combined with a unique fingerprint.

Participation in Instant Payments is optional. However, most banks in the Netherlands are participating and offer Instant Payments . It is expected that in due time even more banks will follow. Banks in other SEPA countries will also offer or are already offering Instant Payments.

No, (contactless) point of sale terminal transactions continue to work as we are used to.

No, the participating Dutch banks will automatically process payments via mobile devices and internet banking as Instant Payments. If the bank of the payer or the beneficiary does not participate, the payment will be processed the old way: on the same day or the next business day.

If it is considered advantageous, other payment products can also be offered as Instant Payments. Time will tell if this will be the case, and if so, at what rate. There are no plans to phase out the current infrastructure in favour of the Instant Payments infrastructure.

Single payments via mobile devices and internet banking will be first in line to be processed as Instant Payments. Other arrangements have not been made. For now it will mostly concern payments in euros within the Netherlands but as more banks in Europe are participating also the cross border volume will grow.

Instant Payments are payments whereby the payment amount is credited immediately on the account of the beneficiary. Resulting in access to the funds for the beneficiary within seconds, any time of the day (24/7), any day of the year (also on weekends and public holidays). Regardless of where the bank account is held. It concerns payments in euros within the SEPA countries.

It means that an Instant Payment will always be directly credited on the account of the beneficiary, 24 hours a day, every day of the week, even at night, weekends and holidays. Of course the payer must have enough funds in his account to make the transfer.

The payer will notice very quickly whether if a payment is successful or not. There can be various reasons for an unsuccessful payment. For instance, the payer could have insufficient funds or the account of the beneficiary could be closed.

Yes, the bank will apply the IBAN Name Check when entering the account number and the name of the beneficiary. In this respect there is no difference in the way the payment is processed later on.

Safety and reliability meet all the high requirements by supervisors for euro transfers between banks. 

Banks in the Netherlands use the same limits for Instant Payments as they currently use for mobile and internet banking. The infrastructure within the Netherlands has no limit to the amount for outgoing or incoming payments. Instant Payments should be able to support all payment types over time.

For cross border Instant Payments there can be a maximum amount applicable. The standard maximum amount is currently set on EUR 100.000,- but also for cross border payments banks can mutually agree on a higher maximum.

Whenever a payment (including the Instant Payment) is approved and sent, it cannot be recalled.

The payer will notice very quickly if the payment has been successful. How the payer is notified might differ per bank. Banks inform their customers on this topic.

Initial experience shows that  the transaction speed of 5 seconds is easily achievable.

Each bank will determine whether, and if so, what fee(s) they intend to charge for Instant Payments.

The EPC registers which Payment Service Providers in which countries are offering Instant Payments conform the European standard. The list of participants is available on the website of the EPC as ‘Register of Participants’.

More and more banks in Europe are participating in Instant Payments. The European Payments Council (EPC) registers which banks comply to the European standard on Instant Payments. For more information see our page on Europe.

An Instant Payment from the Netherlands complies fully with the European standard. For an Instant Payment in euros to take place, between a Dutch bank and a foreign bank in Europe, both banks have to adhere to the European standard for Instant Payments.
Instant Payments within the Netherlands have the following qualifications:

• The payment takes place within 5 seconds
• Every amount is possible in theory; the bank decides, as they do now, which maximum amount is allowed for different payment types (mobile banking, internet banking)

The European standard applies to an Instant Payment from or to the other countries within Europe: every transfer has a limit of 100.000 euro and takes up to 10 seconds before the money is credited to the account of the beneficiary. But also in Europe banks can mutually agree on a higher maximum or faster processing timelines.

The Dutch Payments Association participates directly and actively in the development and maintenance standards within the European Payments Council (EPC). This also includes Instant Payments.

For payments processed as Instant Payments, there will no longer be a difference between a working and a non-working day. The amount payed will be credited directly and is instantly available for the beneficiary.

The reporting of the banks might change. Banks will inform their clients accordingly.

Each bank decides this for themselves. Banks will inform their clients accordingly.

Instant Payments will be processed on working and s non-working days. This might require some adjustments for your administration, systems or terms of delivery.

Instant Payments offers new opportunities for online and real-time services. To benefit from these new possibilities a redesign of your business processes might be necessary.

Companies should take into account that their customers know that their Instant Payment is instantly credited to your company. This might impact the way you arrange your customer service.

Business clients can contact their own bank for further, business related questions.