The Online Payments solution of CCV is constantly evolving and improving to provide users with the best possible experience. It is designed to streamline the payment process, making it convenient and efficient for both customers and businesses. On October 25th 2023, a new version was released which brings important additions to our suite of payment tools, and we are excited to offer it to our users. We believe that this new release will be a valuable addition to the Online Payments solution of CCV.
More information about CCV Online Payments can be found here: https://www.ccv.eu/en/solutions/payment-services/ccv-online-payments/
Bancontact 3DS2
As announced in August 2023, Bancontact 3DS1 is coming to an end and CCV has completed the implementation of Bancontact 3DS2 – an advanced authentication solution designed to enhance the security of your online card transactions. CCV will now start a phased migration plan. In the coming weeks, merchants will gradually be transferred to 3DS2 and CCV will closely monitor all transactions and will make adjustments where necessary.
This move from 3DS1 to 3DS2 is not new. In 2020 CCV has released a whitepaper that explained everything you needed to know about SCA at that time: https://www.ccv.eu/en/about-us/news/trends-ebooks/whitepaper-strong-customer-authentication/. Meanwhile, this migration has been successfully completed for credit cards, and now, the migration has started for Bancontact.
Please be informed that not all Belgian banks are ready with their implementation of 3DS2 yet. While Bancontact and CCV are ready to accept 3DS2 transactions, a fall-back to 3DS1 is available for Bancontact cards that are issued by banks that did not implement 3DS2 yet. The expectation is that all banks will have implemented 3DS2 before the deadline of Q3 2024.
Card recognition
Understanding the nuances of card transactions just got even better with CCV’s Online Payments. We’ve fine-tuned our system to identify various card types, such as VISA and MasterCard, more accurately. This means that we can now ensure the most precise invoicing of transaction fees, considering the varying functionality and transaction costs associated with each card type. This enhancement aims to provide our valued customers with transparency and fairness in our billing process. More information can be found here: https://www.ccv.eu/be-nl/support-faq/ik-begrijp-mijn-factuur-niet-helemaal-wat-betekent/
1. Debit vs Credit:
- Debit Cards: These cards deduct money directly from the cardholder’s bank account with each transaction. They are ideal for daily expenses and ATM withdrawals, typically incurring lower transaction costs.
- Credit Cards: Credit cards allow the cardholder to make purchases on credit, meaning the amount spent is settled later. They are convenient for flexible expense management and often offer rewards programs. Transaction costs for credit cards are generally higher than those for debit cards.
2. Consumer vs. Business:
- Consumer Cards: These cards are intended for personal use and can be either debit or credit cards. They can be used worldwide and usually have lower transaction costs than business cards.
- Business Cards: Business cards are designed for commercial use and may offer additional features such as expense reporting. They can be more expensive due to issuer costs, especially since business cards may not always be subject to the same regulations as consumer cards.
3. Geographic Coverage:
The geographic coverage of a card pertains to where the card is issued versus where it’s used for a transaction.
- Domestic: A transaction is considered “domestic” when it occurs in the same country as where the card was issued. For example, if you have a card issued in the Netherlands and use it for purchases within the Netherlands, it falls under “domestic” transactions. Domestic transactions are typically priced lower than non-domestic transactions.
- Europe Intra-EEA: If the card is issued in a European Economic Area (EEA) country, and the transaction also takes place within the EEA, it is considered a “Europe Intra-EEA” transaction. Within the EEA, interchange fees are regulated by the Interchange Fee Regulation (IFR), which can impact transaction costs. You can find a list of EEA countries here: EEA Countries.
- Europe Non-EEA: If the card is issued in an EEA country but the transaction occurs outside the EEA but within a European country, it is considered a “Europe Non-EEA” transaction. Outside the EEA, interchange fees are usually unregulated, potentially resulting in higher transaction costs.
- Inter Regional EEA: A transaction is deemed “Inter Regional EEA” if the card is issued in an EEA country, and the transaction occurs outside the EEA or vice versa: the card is issued outside the EEA and used within an EEA country. This may involve international transactions and may entail additional costs, such as currency exchange fees.
4. Cost components:
For merchants, three key components influence costs:
- Interchange Fees: These are largely determined by the card schemes.
- Scheme Costs: These are the fees set by the card schemes for processing transactions.
- Acquirer Service Fees: The bank or financial institution working with the merchant charges these fees.