In September 2019, Strong Customer Authentication (SCA), a new regulation for authenticating online payments, will be rolled out across Europe, as part of the Second Payment Services Directive (PDS2).
One of the key aims of SCA is to reduce the incidence of payer fraud and increase security, by introducing two-factor authentication on electronic payments.
What kind of transactions are affected?
The regulation comes into force on 14 September 2019, and will affect any businesses offering online access to payment accounts in Europe, or taking electronic payments, where the payment is initiated by the payer.
SCA does not currently apply to GoCardless’ Direct Debit payments service. That’s because payments through GoCardless are initiated by the payee and payment mandates are set up without the payer directly interacting with their bank.
As small and medium-sized businesses wake up to 2019, many will be looking at their financial goals for the year ahead.
Plans for growth can quickly be undermined if businesses can’t collect the money they’re owed. Britain’s small businesses are owed a whopping £6.7 billion in overdue invoices, according to Bacs Payment Schemes, the organisation which handles inter-bank transactions. This has soared from £2.6 billion in 2017, with one in three firms now waiting more than two months beyond agreed payment terms to receive their money.
The effects are real – if businesses were paid on time, 50,000 more UK companies would survive every year, the Federation of Small Businesses calculates.
So, with more companies being left out of pocket for longer periods, here are our 10 tips for prompt payment in 2019.
2018 has been the year of the global payments network for GoCardless. We’re delivering on our mission to build the world’s first network for bank to bank payments, to take the pain out of getting paid for businesses everywhere.
So far this year, we’ve integrated with Direct Debit schemes in Australia, New Zealand, Canada and Denmark, taking the number of countries in our payments network to 30.
2018 has seen us move into a new London HQ, and open up new offices in Paris and Melbourne (with more coming soon).
We’re also proud to have reached some transactional milestones this year, including processing 1 million payments in one day earlier this month, and more than six hundred million pounds worth of payments a month.
As 2018 draws to an end, we’re excited to announce that GoCardless users can now take Pre-Authorised Debit payments in Canada, bringing the total number of countries in our growing global payments network to 30.
This means that our customers can increasingly use GoCardless to take recurring payments from their end users wherever they happen to be around the world. Great news for organisations with global footprints!
Most people know what Direct Debit is, and that it can be used to collect regular, fixed payments like subscriptions or memberships but we often get asked about whether or not Direct Debit can be used for anything else.
In this week’s FAQ Friday, Product Marketing Manager, Paul, discusses whether or not you can use Direct Debit for variable amounts or one-off payments, and how this might help your business.
Did you know that GoCardless integrates with major accounting and billing software in the UK, including Xero, Sage, QuickBooks, KashFlow, Zoho and more?
These integrations allow you to process Direct Debit payments from within your existing accounts on these platforms and bring with it a host of other benefits, which can help your business run more efficiently.
In this week’s FAQ Friday, Partnerships Manager, Myles, talks through 3 ways that integrating GoCardless with your billing software can help your business.
GoCardless (company registration number 07495895) is authorised by the Financial Conduct Authority under the Payment Services Regulations 2009, registration number 597190, for the provision of payment services.