Overview ■
Rob Gill
The rules of change
While Brexit and EU regulations may grab the headlines in the next couple of years, technology will continue to be the game-changer for the corporate card industry
T 06
he UK government finally started the process of the UK leaving the European Union at the end of March. But it’s still going to be EU
legislation that will be shaping much of the corporate card landscape over the next couple of years. The EU’s wide-ranging Directive on
Payment Services (known as PSD2) is due to be implemented in UK law from January 13, 2018, when the Brexit negotiations will be in full swing.
EU REGULATIONS So what will PSD2 mean for the corporate card industry when it takes effect from early next year? Maria Parpou, product director for Barclaycard Commercial Payments, explains: “PSD2 is a broad piece of regulation covering a number of areas, from how complaints are handled to customer authentication through to the opening up of data to a range of new players. There could be
BBT CORPORATE CARDS SUPPLEMENT 2017
numerous implications for the com- mercial card market, including changes that drive more robust security and further innovation.” Security, particularly around online
payment, is one of the main thrusts of PSD2 that will have an impact on how corporate cards are used over the next few years. Airplus International UK managing director Caroline Haywood says: “PSD2 is going to lead a shift in the way corporate cards are used for online payments, as there are signifi- cant increased security requirements – an increase that is likely to make the payment experience less user-friendly but lead to a reduction in digital fraud rates.” There has also been talk about how PSD2 may ban the practice by travel suppliers – particularly some airlines – of levying high surcharges for book- ings made through credit cards, which some carriers have set at up to 3 per cent of the airfare. Karen Penney, vice-
president and GM at American Express Commercial Payments UK, reckons the UK government is currently consulting on whether to completely ban sur- charging in the UK. “Amex believes a ban would be positive, as consumers do not like this practice, as it misleads them about the price of goods and services,” she says. However, a complete ban on
surcharging has been thrown into doubt by the wording of the UK government’s consultation into PSD2, with the Treasury saying that it “does not currently propose to extend the prohibition” of surcharging as part of the implementation of PSD2. Card surcharges are already covered under the Consumer Rights (Payment Surcharges) Regulations, which came into force in 2013 and state that com- panies should only use a surcharge to cover its own costs. But consumer groups say this legislation is not being enforced properly and this has
In association with
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36