As you may have heard there is new EU regulation concerning online payments. This will take effect on 14 September 2019.
For more details please follow this link: click me ->
So what does this mean for you?
1. what do you need to do?
The BRM team has been upgrading our Stripe integration to use the new Stripe Elements toolkit, meaning we will be fully compliant with the new regulations.
The first beta version of this went live, today 8th July 2019, and we will be shortly rolling out automatically to all customers.
2. will anything else change?
It is important to note that the regulations concern enabling more checks, during online transactions to reduce fraud. To make sure the customer is indeed who they say they are. These may or may not be applied according to each bank's own risk algorithms. For example they may send a PIN code to the customer's phone during the check out process.
It is also important to understand that this only concerns payments made with European cards. Cards from other regions will remain un-affected.
You may notice a higher rejection rate amongst European cards as the banks try to fine-tune their algorithms. Remember it is in their interest to accept payments as that is how they make their money.
3. what about back-office payments using Stripe?
We are also upgrading our back-office API which allows you to store cards and charge cards. But it won't look materially different.
HOWEVER - it may not be able to store cards in the same way.
1) it is likely you will not be able to use a mag-stripe reader to enter card details
2) if a card requires further authentication (e.g. asking the user if they are happy) then it may not be possible to save it)
These transactions will be identified as a 'merchant-initiated transaction' and hence treated differently by the banks.
4. what about storing a card and charging it later?
We don't believe this will be affected. But you will still need to get an agreement from the customer (also referred to as a “mandate”), in order to charge their card at a later point. You will need to make sure your Terms (and any other related documents) are updated accordingly to allow you to continue to this.
Finally if you do have any questions / concerns related to this please contact