The Institute of Travel Management (ITM) has launched a campaign calling for industry collaboration in establishing consistent guidance for travel buyers on the significant implications of the EU¡¯s new Payment Services Directive (PSD2).
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The ITM's industry affairs committee has established a taskforce to bring together corporate card issuers, TMCs and technology suppliers to provide unified information after buyer members revealed that they are facing a minefield of conflicting advice on which booking types and card products require Strong Customer Authentication (SCA).?
SCA, part of the PSD2 regulations which will come into force in the UK in September 2021 despite Brexit, requires cardholders to confirm their identity using more than one technique, such as PINs, one-time identifiers, biometric identifiers and ID fobs.
ITM¡¯s buyer members have identified several concerns about the implications of SCA in a corporate travel environment, including whether GDS, OBT or other aggregator bookings (including NDC) are in scope when transacted via a company credit card and have received conflicting advice on the subject.
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The SCA verification process also presents challenges for corporate travellers, where bookings are made by a PA or travel booker who may not have access to the identification methods required.?
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¡°Obviously we fully understand the need to tackle credit card fraud, but PSD2 presents unique complexities in the business travel sector and buyers are facing huge discrepancies in the information they are receiving from stakeholders regarding what will be required when the directive is enforced later this year,¡± said Scott Davies, CEO, ITM.
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¡°The need for a holistic approach and consistent messaging is paramount. Hence ITM¡¯s Industry Affairs Committee is taking a central role in uniting TMCs, OBTs and card suppliers to help our members understand the directive, how it will impact them and what steps they need to be taking now to be ready for its enforcement,¡± he said.
The taskforce is running a PSD2 webinar on 9 March for buyers to discuss their requirements.