PSD2

PSD2 (Payment Services Directive 2) is the European Union's second Payment Services Directive, officially Directive (EU) 2015/2366. It regulates how banks and other payment service providers may process payments in Europe. Member states had to apply the directive from January 2018, and in Estonia it has been transposed into national law. A casino player comes into contact with PSD2 every time they approve a deposit with Smart-ID or pay via Trustly.

What PSD2 changed

The directive has two changes that directly affect casino payments.

• Open banking. With your consent, banks must allow licensed payment initiation and account information service providers to use your account through a secure interface. Trustly, Zimpler and Pay N Play, for example, rely on this.
• Strong customer authentication (SCA). Most online payments must be approved with at least two independent factors, such as a phone and a PIN code. In practice this means two-factor authentication and, for card payments, 3-D Secure approval.

PSD2 also clarified the payer's rights in the case of unauthorised transactions and the liability of payment service providers. Estonian payment institutions are supervised by the Financial Supervision Authority (Finantsinspektsioon). A short overview of the directive is available in the Wikipedia article.

How PSD2 affects casino deposits and withdrawals

The most visible effect is on the deposit. When you pay with a bank account or card, your bank asks you to approve the transaction. This adds a few seconds but makes unauthorised payments much harder. A payment made through the bank interface also gives the casino confirmation that the account belongs to you.

PSD2 does not directly speed up or slow down a withdrawal, because in a withdrawal the casino sends the money, not you. There is still an indirect effect:

• if the deposit was made via open banking, the casino already knows the correct account and the same-method rule is easy to meet;
• some personal data comes from the bank, so the KYC check can be simpler;
• a fast withdrawal requires the payment provider and bank to use the SEPA instant payment, which is not a PSD2 requirement but a separate rule.

PSD2 does not change the casino's own obligations either. Anti-money laundering rules apply regardless of the payment method, so the casino may ask for documents for a larger withdrawal. The guide casino withdrawal time explains the withdrawal stages.

What to keep in mind as a player

• Approve only payments you initiated yourself, and check the amount and recipient before approving.
• If someone asks you to make an unexpected Smart-ID confirmation "to verify your account", refuse and contact your bank.
• If a payment you did not make has been taken from your account, report it to your bank without delay. PSD2 gives the payer the right to claim a refund for an unauthorised transaction, but the conditions depend on the situation.
• Remember that a non-bank e-wallet such as Skrill is also covered by payment services regulation, but its terms differ from a bank's.

Frequently asked questions

Does PSD2 also apply to casinos based outside Europe?

PSD2 regulates European payment service providers, not casinos. If you pay from an Estonian bank, the PSD2 requirements apply to your bank regardless of where the casino is based. Read separately about the casino's licence and taxation, for example are casino winnings taxable in Estonia.

What comes after PSD2?

A new payment services framework is being prepared in the European Union, often called PSD3, together with a separate Payment Services Regulation. Its content and entry into force may still change, so it is worth following official sources.

No payment regulation protects you from gambling too much. If you need help, see the responsible gambling page.