Stardekk helps you on your way with PSD2 (secure online payment)

What is PSD2 and when will it be applied?

PSD2 stands for Payment Service Directive 2 and is a European directive that will enter into force on September 14th, 2019. Its goal is to make online payments more secure and simple. PSD2 states that double authentication (known as SCA or Strong Customer Authentication) is now required to authorise a transaction online. It is therefore no longer sufficient to request a customer's credit card details in order to guarantee an online reservation.

What is SCA?

A SCA or Strong Customer Authentication is a double or 2-factor authentication. From 14th September, to approve an online payment, you need to assure a SCA is in place. At least two of the three factors below are required in order to complete the transaction.

This means that credit card information is no longer sufficient to complete the transaction. You need at least two authentication factors to be compliant with PDS2.

What does this mean for my current way of working and how can I prepare myself?

In order to be able to answer all your questions better, we split the answers per product.

Integrate Stardekk PAY CONNECT

Online transactions via the Cubilis Booking Engine may be refused by the bank if no additional authentication check is performed. Credit card details are no longer sufficient. It is recommended to use Stardekk Pay Connect (integration of a Payment Service Provider or PSP). This way, you and your customer are assured of a secure payment. The complete list of connected PSP integrations can be found under “payment” in the Cubilis Marketplace: https://cubilis.com/en/connectivity-marketplace-2. If you want to activate Stardekk Pay Connect, you can always contact support@stardekk.com.

What about delayed payments – prepayments before checking in, cancellation and no-show fees or non-refundable reservations?

If SCA was not carried out when the card details were recorded and SCA’s registration was not passed on the PSP, you may not be able to process the payment at a later date. The best way to collect deposits, cancellation fees and no-shows is to add Stardekk PAY CONNECT to the booking module.

Reservations via hotel booking sites (OTAs)

The working method may differ per OTA. The payment process will vary depending on the way they work. We advise you to contact the OTA in question to check how they handle PSD2. Virtual credit cards will be treated the same way, they will remain available in your extranet & can also – if you approve – be sent to the linked PMS system.

Will my PMS still receive credit card details?

Yes, these will be forwarded as before. When paying with these cards, SCA will apply.

Direct reservations via email, phone & walk-ins

The telephone and email sales (MOTO of Mail Order and Telephone Order) is one of the exceptions. Payments may continue to be made in the same manner and are not subject to PSD2. No SCA is required for this type of payment. To receive the payment, the credit card reader must be configured to transaction type MO-TO and you can process the payment without difficulty. Even in case of personal sales, nothing changes because the customer is physically present.

Can I use a card reader to charge cards that I have obtained through an online booking?

When the card has been obtained electronically (via the internet) and if the transaction is within the scope of PSD2, double authentication is required to complete the transaction. This means that if you only have the card number, you will NOT be able to manually charge a card using a card reader, as you will not have double authentication of the customer.

What about delayed payments - prepayment for check-in, cancellation and no-show fees?

If SCA was not carried out when the card data was recorded and SCA’s registration was not passed on to the PSP, you may not be able to process the payment at a later date if the card is not present. To ensure that you can collect the payment, we recommend that you encourage guests to pay at the time of booking. This includes the collection of any advance payments to cover the cost of advance payments, cancellation fees, and no-shows and can easily be achieved by adding a PSP to the Booking Module.

Direct restaurant reservations via email, telephone & walk-ins

The telephone and email sales (MOTO of Mail Order and Telephone Order) is one of the exceptions. Payments may continue to be made in the same manner and are not subject to PSD2. No SCA is required for this type of payment. To receive the payment, the credit card reader must be configured to transaction type MO-TO and you can process the payment without difficulty. Even in case of personal sales, nothing changes because the customer is physically present.

What about reservations via the booking engine?

Stardekk now offers the possibility to activate Stardekk Pay Connect on your booking engine. This way you can ask the guest for an advance as a guarantee, during the booking process. This advance can then be deducted from the final bill.

*Note: This function is currently under development and will be activated quickly. We will keep you informed.

Direct reservations via email and telephone

The telephone and email sales (MOTO of Mail Order and Telephone Order) is one of the exceptions. Payments may continue to be made in the same manner and are not subject to PSD2. No SCA is required for this type of payment. To receive the payment, the credit card reader must be configured to transaction type MO-TO and you can process the payment without difficulty. Even in case of personal sales, nothing changes because the customer is physically present.

What about Non-Refundable (NRF) reservations?

The correct method is to use a Payment Service Provider (PSP) that checks the double authentication of the customer. Charging a card with a card reader without double authentication and without the customer being present remains a transaction that can be refused. The full list of connected PSP integrations can be found under “payment” in the Cubilis Marketplace: https://cubilis.com/en/connectivity-marketplace-2. If you want to connect with a PSP, you can always contact support@stardekk.com.

Can I use a card reader to charge cards that I have obtained through an online booking?

When the card has been obtained electronically (via the internet) and if the transaction is within the scope of PSD2, double authentication is required to complete the transaction. This means that if you only have the card number, you will NOT be able to manually charge a card using a card reader, as you will not have double authentication of the customer.

What about delayed payments - prepayment for check-in, cancellation and no-show fees?

If SCA was not carried out when the card data was recorded and SCA’s registration was not passed on to the PSP, you may not be able to process the payment at a later date if the card is not present. To ensure that you can collect the payment, we recommend that you encourage guests to pay at the time of booking. This includes the collection of any advance payments to cover the cost of advance payments, cancellation fees, and no-shows and can easily be achieved by adding a PSP to the Booking Module.

New! Emailinglist booking confirmation: request payment via email

Connect Bookingplanner, Channel Manager and Restobooker with Emailinglist*. This allows you to automatically send a payment invitation to your guest via the EMailinglist system. The guest will receive an e-mail with a link to the payment platform of your choice. As soon as the payment has been received, the booking is confirmed and the confirmation is automatically sent to you.

*Note: This new feature is currently under development and will be activated quickly. We will keep you informed.  

Also read: The official PSD2 guideline can be consulted here.