Paypal Pro PSD2

To comply with the PSD2 requirements coming Dec. 31, 2020, PayPal Pro merchants located in the EU will need to comply with a new European Union directive requiring Strong Customer Authentication (SCA).

What is PSD2?

PSD2 stands for Payment Services Directive 2. PSD2 is a new EU directive regulating payment services in the European Economic Area. This directive requires that we put in place, new measures that impact how you access your account and pay with PayPal.

One such measure is the introduction of two-factor authentication for electronic payments, known as 'Strong Customer Authentication' (SCA).  For electronic payments in Europe, this extra security is being implemented to help keep online card purchases more secure and prevent fraud.

You can read more about this at:
https://www.paypal.com/uk/webapps/mpp/psd2

How will PSD2 affect U.S. businesses?

Although the PSD2 is only being enforced in the European Economic Area (EEA), it will have an effect on U.S. businesses. Essentially, the Strong Customer Authentication (SCA) mandate applies to all merchants doing business in the EEA. So, if your business meets the following criteria, you may need to implement SCA-compliant transactions:

- U.S. entity only but receive EU customers and traffic

If your business receives a significant amount of traffic from Europe, setting up an EU entity could be a good idea.

- U.S. business expanding into the EU

Businesses expanding into Europe will need to comply with PSD2 and SCA, so making the transition as soon as possible will be beneficial.

- U.S. headquarters but entities in the EU

Any U.S. businesses with entities in the EU will need to ensure that their European entities are PSD2-compliant and SCA-ready. Otherwise, you run the risk of declining authorization rates and even declined payments.

What do VPCart merchants using PayPal Pro need to do?

A) Register your PayPal Pro Merchant Account with CardinalCommerce (PayPal’s Preferred customer authentication partner)

In order to activate the Strong Customer Authentication requirement of PSD2 you must register your PayPal Pro merchant account with CardinalCommerce here. It’s a free service for PayPal merchants.

To register, please go here:
https://paypal3dsregistration.cardinalcommerce.com/UI/Registration.aspx

Note: If you use multiple PayPal Pro merchant accounts you must register each one individually.

B) Obtain your Cardinal Credentials

CardinalCommerce provides your credentials via email when you register with them as below:

Api Key identifier:
Merchant SSO OrgUnitId:
API Key:

You will use these credentials later in your VPCart administration.

C) Check your VPCart version and populate Cardinal credentials into VPCart Paypal Pro CardinalCommerce

Firstly, check your VPCart version.

If you are using VPCart 9.0.0.1.2019.09.14.01 and onwards (the latest), the VPCart Paypal Pro for CardinalCommerce is already built-in by default.

To enable VPCart Paypal Pro for CardinalCommerce:

- Log into your VPCart control panel, then go to:  Modules > Payment Solutions



- Click Configure PayPal Solutions



- Locate section “PayPal Payments Pro” and click button “Configure”.



- Click Save button to go to next settings page.



- Click Edit button under the row CardinalCommerce Account Information.



- Enter the following fields with your CardinalCommerce credentials and click Save button:

Activate CardinalCommerce? Yes
Api Key identifier: xxxxxxxxxxxx
Merchant SSO OrgUnitId: xxxxxxxxxxxx
API Key: xxxxxxxxxxxx



After that, you are ready to use the Paypal Pro that is supporting PSD2.

If you are using V9 versions below VPCart 9.0.0.1.2019.09.14.01, then you will need to download and install the “PayPal Pro SCA Patch 9.00” module. You can download the patch at:

https://www.vpcart.com/sales/addons900.asp

After downloaded, please refer to the readme inside the module for installation.

If you are using V8, V7, V650, V6, V5.5, and any lower versions of VPCart, then unfortunately you will need to upgrade your VPCart to our latest version. You can upgrade your VPCart by going to:

https://www.vpcart.com/sales/upgrade.asp