At the beginning of January 2021, the compliance with the regulation related to the Payment Service Directive (PSD2) became mandatory, even though despite being in force since late 2019.
After the adaptation period given by the European Commission, it is now imperative that hotels implement the required measures that directly affect the sector.
designation still raises some doubts that we will try to clarify during the article, so that hoteliers can act consciously and accordingly.
PSD2 is changing the universe of online payments, and it aims to ensure customer protection by reinforcing transaction security and requiring strong authentication, as well as simplifying the payment of online reservations once they become payment transactions with an intermediary duly authorized by regulators.
With the entry into force of this regulation, hotels must guarantee online billing securely through Online Payment Gateways / Virtual TPA.
A Virtual TPA is a tool that allows online payments, management and greater control of fraud, automatic verification of invalid cards and it guarantees an immediate and secure transaction.
Thus, hotels that choose for online payments must hire a Virtual TPA service that will also allow automation in the process of online transactions and bigger convenience and security in the operation.
Please note that if the hotel does not operate with online payments, that is, the only payment method available is face-to-face payment, this rule does not apply. But the fact is that this is an increasingly marginal reality: in practical terms PSD2 is applied in the case of non-refundable reservations, no-show or cancellations in which the hotel will have to make a non-face-to-face charge.
In these cases, it will then be necessary to use platforms capable of operating, based on the rules of this directive, the appropriate charges.
The PSD2 focuses, essentially, on the security of online transactions. For this reason, the online platforms used for these same transactions must protect and tokenize the customer's card data (i.e. encrypt the credit card numbers by a series of random numbers providing increased security of the data in the transaction).
Prior to the implementation of PSD2, e-GDS for several years has offered to his clients the possibility of integration with a series of online payment platforms.
As this is an automation and security process is not at all new to e-GDS. The automation in the payment process is defined by the hotel, which can immediately use the system to validate the truthfulness and veracity of the card data, partially or full charge the amount of the reservation, or even define when it will be done; the customer knows that they are using his data in their own secure environment, ensuring greater confidence in the transaction.
If, until then, the adherence to these certified payment methods was already significant, in face of this regulation it becomes an immediate necessity that will bring to everyone (hotels and clients) greater security and reservation income.