PSD2 is the second Payment Services Directive and it’s breaking down the banks’ monopoly on their user’s data. Through the directive, the European Commission aims to improve innovation, reinforce consumer protection and improve the security of internet payments and account access within the EU and EEA. Banks will no longer be competing against banks, but against everyone offering financial services. For example, it will allow ‘merchants’, e.g. Amazon, to retrieve data from your bank (with your permission). That means when you buy something they can make a payment for you, without having to redirect you to another service (such as PayPal).
This summer, as part of PSD2, QuickBooks will be replacing their standard bank feeds with the new Open Banking direct feeds, providing a smoother experience, enhanced security and a more stable connection. Most QuickBooks customers will need to update their bank feeds. It’s a speedy, simple process and they will give you step-by-step instructions in time for the switch in September. The good news is, the upgraded feeds will be more stable and accurate than the current system. You’ll just need to re-authorise the connection every 3 months.
Find out about Open Banking, the improved security and why it’s good news, in a new blog post from QuickBooks that you can find here.
If you need any help with your accounting software, please get in touch with us and we’ll be happy to be of assistance.