Confidently Meet Compliance Obligations with Spreedly

At Spreedly, we’re committed to staying ahead of regulatory requirements so our customers can focus on growth and innovation. Whether it is the European Union’s Payment Services Directive 2 (PSD2) or Visa and Mastercard’s card-on-file mandates, Spreedly is developing the technology to support our customers across the most heavily impacted gateways.

Update: See all the posts in this series with our regulations and compliance guide here.

Complying with Payments Regulations and Innovation Time

Regulations from card brands, governments, and enforcement bodies are arriving increasingly often. Any single set of new regulations can completely overwhelm a payments team or merchant developer. This disruptive, required work throws any existing plans into disarray. Suddenly, your team is scrambling not only to understand the new standards but also to meet their requirements before a deadline that you didn’t ask for or agree to arrives.

Payments regulatory work is critical to address, and it impacts most businesses in two primary ways:

1. Innovation velocity - You have important goals for your business, and you can’t afford to put them on hold indefinitely while your team figures out and addresses the next set of requirements.
2. Loss of revenue - New standards that are localized to a region must be addressed if you currently have or want to have business in those regions. Pulling out of or not expanding to the regulated market is simply not an option.

Spreedly is deeply invested in the world of e-commerce payments, and our job is to stay informed on current and upcoming compliance standards -- regardless of the source or governing body. We are here to help you navigate the ever-shifting world of payment standards and implement a solution that is compliant and successful. From PCI to GDPR to PSD2 and beyond, Spreedly can help you understand what is coming and confidently address it.

With this in mind, we are excited to tell you about our latest efforts on two major compliance initiatives: Strong Customer Authentication (SCA) and Stored Credentials.

Spreedly Helps You Address SCA and 3DS2

The EU has mandated compliance in September with Strong Customer Authentication (SCA). 3DS2 is the tool most everyone will use to to comply with SCA, and Spreedly is here to help. If you aren’t quite sure what SCA is or if it has anything to do with you, there is tons more to learn at our recent blog series dedicated to this topic.

3DS2 implementations are quite complex, so Spreedly has added integrated examples of each 3DS2 payment flow to the Spreedly Test gateway. You can get started today by following our guide here to get your payment application ready for 3DS2 integration. Adyen, Redsys, and Credorax are expected to be in our first cohort of available 3DS2 gateways, so contact us if you use one of these gateways and are ready to implement 3DS2 transactions. If you are using a different gateway, reach out and let us know so we can understand more about your requirements.

We'll be publishing our progress on various gateways. Please know that 3DS2 is a very fluid situation and that dates and implementation requirements may change. Our goal is to communicate as frequently as possible.

Spreedly Helps You Support Stored Credentials Regulations

Visa and Mastercard have implemented Stored Credentials frameworks to meet requirements for card-on-file transactions. When storing payment credentials for recurring transactions, a merchant is now required to disclose how the payment method will be used (merchant- or cardholder-initiated transaction and recurring, unscheduled, or installment payment type) and to gain the cardholder’s consent. When transacting, the merchant must then pass along stored credential information to the gateway using a standard set of Spreedly fields that ultimately get routed to the issuer for approval.

Stored credential transactions provide better visibility of transaction risk levels for issuers and result in higher authorization approval rates and completed sales. There are no penalties for non-compliance, but merchants who have adopted a stored credentials solution have already begun to see higher transaction success rates for card-on-file transactions.

How Spreedly Can Help You Get Started with Payments Regulations

Want more details on how Spreedly can help you increase regulatory compliance? Or get more information about the Spreedly 3DS2 test gateway? If you’re a customer, contact your Spreedly success team or account manager for more details.

Spreedly lets you focus on payments innovation by keeping you ahead of payments regulations.

Plus500 relies on Spreedly to stay ahead of new regulatory requirements. Connecting to all of our payment gateways through a single Spreedly integration, we can confidently comply with new regulations without having to build numerous, disparate solutions. Rather than scrambling to understand and meet new standards, our payments team can confidently focus on growth and innovation.

Anna Kreindler, Head of Payments, Plus500