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PSD2 (Part 2): Enhanced ID Verification - What You Need to Know
2 years ago by Jack Evangelides

PSD2 (Part 2): Enhanced ID Verification - What You Need to Know

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With a deadline of 2019, compliance with PSD2 from Payment Service Providers (PSPs) is right around the corner. Having to adhere to certain Regulatory Technical Standards (RTS), the traditional customer - merchant relationship is drastically changing. From banks offering their APIs to Third-Party Providers (TPPs) to enhanced security measures in the forms of fingerprint scans or even facial recognition when placing transactions. The overriding goal is to simply eradicate, once and for all, any and all fraudulent activities. PSD2 is innovation at its finest and it has the flexibility and responsiveness to adapt to ever-changing circumstances. Enhanced ID Verification (EIDV) offers an extra and highly necessary layer of security for e-commerce in order to stamp out fraud. Payment regulators understand and prioritise customer safety when making transactions, so how can EIDV provide this desired security? 

Enhanced ID Verification - The Digital Defender, at Your Service

EIDV has the potential to be manipulated in various ways to ensure the utmost security measures, to protect you and your sensitive data from harm's way. Whether you're placing high value transactions or buying a pair of shoes, EIDV can safeguard your data and ensure a smooth trade.

The potential for Enhanced ID Verification is, potentially, unlimited. For example, a relatively new digital identity verification platform envisages newer means of security for e-commerce. The platform - Jumio, attempts to match IDs of individuals with an image of the user, in real-time. Straightforwardly, if you were to make a transaction you would have to verify who you are the correlates with your identity through the means of a 'selfie' (a picture taken by oneself, of oneself).  The selfie nature of Jumio essentially 'scares' off fraudsters, because of their, would be, unwillingness to want to release a photo. Furthermore, Jumio complies with mandates and directives such as: KYC, AML, GDPR and PSD2. This service platform leads the way for other innovative ideas to enhance security and minimise fraudulent activity. 

Here at Cedar Rose, we offer EIDV to discover the validity of an individual, in real-time. We use public records to match data across 'Source A' with stored data from 'Source B', data in the form of ID cards, driving licenses, birth certificates and more. If the information correlates from the sources we can then confirm one's identity, however, if there isn't a match, we can then conclude that there has been an attempt of fraud. Similar to the Jumio platform, Cedar Rose can kick out fraudulent activities and ensure the safety and security of their clients. More specifically, there are two routes in which you can use EIDV.

Firstly, by using a meKYC check that provides access, via API for instant verification data, for both people and businesses. Or, secondly, you can perform a youIDV check that allows you to focus on people alone, also via our robust identity verification API tool.    

PSD2 - The Opportunist

The future of e-commerce is constantly developing and evolving. PSD2 provides opportunities for innovative ideas that can change the traditional format of online transactions, provide in-depth security measures and, conclusively, eliminate fraud. With the future of technologies constantly changing, PSD2 delivers an adaptable directive that parallels and works with new technologies (such as EIDV). The evolution of e-commerce is at our doorstep. Banks will now have to offer their APIs to TPPs and introduce a contingency plan in the case of their APIs failing. The banks would have to then give TPPs an alternative way of accessing their customer`s data, thus, providing them with end-users' login credentials (even though they are not technically the end-user). Excitingly, the deadline for the compliance with PSD2 is estimated to be September 2019. Don't miss out on Cedar Rose's latest articles as we will be bringing you updates on PSD2 developments, see here. 

Sourced Image: Pixabay   

*** The sole purpose of the article above is to generate public discussion, it has no intention to constitute legal advice. ***

  • ID Verification
  • eIDV
  • PSD2
  • KYC
  • Verification
  • Identity
  • API
  • eKYC