The Regulatory Technical Standards (RTS) is a set of regulatory requirements designed to make online payment safer and in turn, reduce payment fraud.
In practice, it is a two-part authentication process. Now, when you make an online purchase, in addition to your payment details you will need to provide two additional details to verify that you are who you say you are. This information is classified into three categories:
Something only you know: such as a password, pin, or secret answer.
Something only you own: such as your cell phone, watch, or smart card (card with chip).
Something only you have: such as a fingerprint, voice pattern, or iris scan.
RTS is part of PSD2. One of the objectives of PSD2 is to provide protection to consumers and is applied when a company and its customers’ bank are located within the European Economic Area.
This will go into effect on December 31, 2020. The technological solution that RedSys will provide in Spain will be through the 3D Secure 2.2 protocol.