Under PSD2, Mews uses an authentication solution called 3D Secure.

 

PSD2 encompasses SCA (Strong Customer Authentication) requirements that officially take effect at the end of 2020. However, some banks enforce SCA sooner. For detailed information on SCA requirements and to understand which payments and countries are affected, please refer to Stripe's information on the SCA deadline.

 

In this article you can learn about:

• How PSD2 works
• Exemptions
  • MOTO payments
  • Card authentication for multiple charges
• Recommendations
  • Check payments that still need verification
  • Check payments that weren't verified in time
  • Check verified payments on open bills

 

How PSD2 works

When the guest's bank does not require 3D Secure, Mews processes payments as usual. If extra verification is necessary, the following steps occur:

1. The property triggers a payment, either automatically or manually.
2. Any payment awaiting guest confirmation shows a Verifying status. Note: You can move Verifying status payments to open bills, but you can only close the bill once Mews verifies the payment.
3. The guest receives a verification email from Mews. If the guest cannot find the email, select the option to resend the email.
4. The guest completes the verification for the payment.
5. The payment processes.
6. The payment status updates to Verified.

Note:

• The verification link in the email expires 24 hours after sending. If the guest does not verify in time, you will need to recreate the payment.
• If a guest fails to verify the payment before the email link expires, the payment status changes from Verifying to Canceled.

 

Exemptions

MOTO payments

Under recent updates to strong customer authentication regulations, you can now process all third-party payments, such as those from online travel agencies, as mail order/ telephone order payments. These types of payments qualify for an exemption from 3D Secure verification, although the cardholder's bank ultimately decides whether to grant the exemption.

1. A guest makes a payment through an online travel agency.
2. Mews' payment providers process the payment and request an exemption from the cardholder's issuing bank.

• • If the bank declines the exemption, your customer must verify their payment as they would have.
  • If the bank approves the exemption, Mews processes the payment without verification. This exemption will also apply to all future payments made with that card.

 

Card authentication for multiple charges

Exemptions designed for the hospitality industry allow guests to authenticate a card once during online check-in or when making a reservation through the Mews Booking Engine. This one-time authentication allows you to process future payments from the guest without further verification.

1. A guest authenticates a payment card during online check-in or while booking through the Mews Booking Engine.
2. During payment processing, you request an exemption from the card's issuing bank, citing the prior authentication.
3. If the bank approves the exemption, Mews processes the payment immediately, bypassing the need for additional verification from the guest.

Note: If the bank declines the exemption for any reason, the guest must verify the payment in the usual manner.

 

Recommendations

To ensure you do not miss any payments that are verified or canceled because the verification email expires before the guest confirms the payment, follow these steps whenever one receptionist hands over to another for a new shift.

 

Check payments that still need verification

1. In Mews Operations, go to the Main menu > Finance > Payment report.
2. Set up the report with the following filters:
   1. Start and End: Input the beginning and end times of the shift that is ending.
   2. Status: Select Verifying.
   3. Options: Select 3D Secure.

The report generates a list of all payments pending verification by the guest where the verification code has not expired. You can wait for the payment to process or contact the guest directly.

 

Check payments that weren't verified in time

1. In Mews Operations, go to the Main menu > Finance > Payment report.
2. Set up the report with the following filters:
   1. Start and End: Input the beginning and end times of the shift that is ending.
   2. Status: Select Canceled.
   3. Options: Select 3D Secure.

The report displays all canceled payments because the guest did not verify the payment before the verification email expired. You should recreate the payment and contact the guest.

 

Check verified payments on open bills

1. In Mews Operations, go to the Main menu > Finance > Accounting ledger.
2. Set up the report with the following filters:
   1. Mode: Select Detailed.
   2. Type: Select Guest ledger.
   3. Group by: Select Customer.
3. Under the General ledger column, find a bill with a balance of "0".
4. Click on the name of the customer.
5. Click Close.
6. Repeat steps 1-5 until you have closed all bills with a balanced amount.

 

You can learn more about PSD2 and 3DS frequently asked questions here.