PSD2 is the EU regulation that introduced Strong Customer Authentication for electronic payments and required banks to open access to accounts via APIs for licensed third parties (PISPs and AISPs). It is the regulatory backbone of open banking in the UK and EU and shapes how authentication exemptions, dispute liability and account access work in scope markets.
Travel payments glossary
PSD2 (Payment Services Directive 2)
EU regulation that introduced strong customer authentication and opened bank accounts to licensed third parties.
Why it matters in travel
PSD2 affects travel-payment design across the UK and EU — when SCA applies, when exemptions can be used, how open-banking payments are presented, and where chargeback liability lands. Compliance is not optional and it changes how payment funnels are built.
For a UK or EU travel business, PSD2 is the regulatory backbone that decides which authentication exemptions are available, which open-banking flows are possible, and which payment data has to be shared with licensed third parties. The implementation choices made under PSD2 affect everything from conversion rate to chargeback liability to fee profile.
The travel businesses that engage with PSD2 proactively turn the regulation into commercial advantage — using open banking for cost savings, using authentication exemptions for conversion, using AISP data for reconciliation. The businesses that meet PSD2 only as a compliance burden miss the upside the regulation built in for businesses willing to use it.
How felloh helps
felloh handles PSD2 SCA, exemptions and open-banking flows inside the booking-level picture so travel businesses can meet the rules without rebuilding their payment stack for each market.
Where this shows up in compliance and protection.
PSD2 (Payment Services Directive 2) touches more than one workflow at felloh. Start with the pages most travel teams reach for next.
- Compliance & Reporting
Prepare ATOL, APC, trust and audit evidence from live booking data — without a separate reporting layer.
Explore - Simplify ATOL & Trustee Reporting
Trust, escrow and protected-funds evidence drawn from the same record as the underlying payment.
Explore - Financial Protection Data
Authentication, settlement and protection evidence held against the booking for audit and regulator queries.
Explore
More on compliance and protection.
Real-world context from the felloh team and customers, written for travel finance and operations.
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Connect the dots.
See how payments, settlement, refunds and reporting evidence connect around every booking.