GLOSSARY

PSD2 (Payment Services Directive 2)

Understanding the PSD2 regulation

The Payment Services Directive 2 (PSD2) is a key regulation within the European Union that governs “Open Banking”. It aims to liberalise the market by allowing third-party providers (TPPs) to offer payment services, fostering competition and innovation in the financial sector.¹

Consumer protection at the forefront

PSD2 builds on the first Payment Services Directive, reflecting advances in technology and the rise of new players in the market. It sets out regulations for online and mobile payments, enforces stricter security requirements and enhances consumer protection by limiting liability for unauthorised payments and ensuring the right to reimbursement for direct debits.²

PSD2: Good to know for SMEs

PSD2 is crucial for SMEs as it promotes competition and innovation in financial services, offering access to more affordable and diverse payment solutions. By allowing third-party providers (TPPs) into the market, SMEs benefit from improved payment processing, faster transactions, and increased transparency.

Additionally, PSD2’s strengthened security measures and enhanced consumer protection reduce the risk of fraud, making online and mobile banking safer. This also includes protection against attacks such as phishing, enabling SMEs to operate more efficiently and provide their customers with higher-quality services.

Sources:
¹ European Commission: Payment services: revised rules to improve consumer protection and competition in electronic payments
² InfoGuard – Swiss Cyber Security: PSD2 – what you should know about it and why it is a guarantee of security in “Open Banking”

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ACH

ACH, or Automated Clearing House, is a local payment route in the United States that facilitates electronic money transfers between banks. It requires a local bank account or the use of local payment providers. ACH payments enable financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard. It’s commonly used for direct deposits, bill payments and other bank-to-bank transfers within the United States.

ACH payment

ACH payments are processed through the local ACH network in the United States, requiring a local bank account or the use of local payment providers. This method allows financial institutions to transfer funds electronically, bypassing traditional card networks like Visa and Mastercard.

BIC (Bank Identifier Code)

The Bank Identifier Code (BIC) is an internationally valid bank sort code defined by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). Since the BIC code is issued by SWIFT, it is often also referred to as the SWIFT code.

Credit card

A credit card is a payment card that enables users to make purchases or withdraw cash using borrowed funds, rather than money from their own bank account. Unlike a debit card, which instantly deducts the transaction amount from a linked account, a credit card allows users to borrow up to a set limit and repay it later, usually with interest.

Debit card

A debit card is a payment card that enables users to make purchases or withdraw cash directly from their bank account, such as a checking or savings account. Unlike a credit card, which relies on borrowed funds, a debit card immediately deducts money from the user’s account when a transaction is made.

MT103

An MT103 is a standardised payment message issued by the bank within the SWIFT network, serving as an official confirmation of a completed transfer. It includes all relevant payment details, such as the date, amount, currency, and information about the sender and recipient. The MT103 document thus provides a reliable basis for transactions requiring payment confirmation, such as deliveries or services.

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amnis offers a comprehensive platform for international banking, offering a range of tools in one place. Transfer money abroad, exchange currencies 24/7 and collect international money transfer with your own IBAN accounts supporting 20+ currencies. Founded in 2014 in Zurich, amnis is a regulated payment institution under the supervision of the Banking Supervision Section in Liechtenstein (FMA) within the EEA.

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