What is Open Banking or PSD2?Open Banking (PSD2) is new legislation that started to take effect from 14 September 2019 and changes the way some banks connect with accounting software across the UK and Ireland. Some changes introduced by PSD2 come into force on 14 March 2020. The legislation is called Second Payment Services Directive (PSD2) but is sometimes referred to as Open Banking (PSD2). Open Banking (PSD2) is a new secure way for you to share financial information from your bank with other companies like Sage that offer banking and payment apps.
Why are these changes being made?These changes are part of a European-wide initiative, which is designed to give you more control over your data and encourage competition and innovation across the banking industry. This is good news as these changes make your Sage bank feeds more secure and easier to set up. And it creates a new world of possibilities for us to do more innovative things with banking and payments in the future. How secure is it?Open Banking (PSD2) uses rigorously tested software and security systems. You'll never be asked to give your bank login details or password to anyone other than your own bank or building society. Only apps and websites regulated by the FCA (Financial Services Authority) or European equivalent can use Open Banking (PSD2). You choose when, and for how long you give access to your data. Your bank or building society will pay your money back if fraudulent payments are made. You’re also protected by data protection laws and the Financial Ombudsman Service. What does this mean for Sage bank feeds?Depending on who you bank with and your bank account type, there are two possible scenarios: - Your connection is Open Banking (PSD2) Ready.
- Your bank isn't yet ready for Open Banking (PSD2).
What if my bank is Open Banking (PSD2) Ready?There may be some steps you need to take to refresh your bank feed connection, such as entering your online banking login details before 5 March 2020. To find out what action you need to take, go to www.sage.com/OpenBanking After this to keep your connection as secure as possible, you need to enter your online banking login details every 90 days. What if my bank isn't yet Open Banking (PSD2) Ready?This means your bank hasn’t yet created an Open Banking (PSD2) Ready connection that we’ve been able to connect to. In Ireland, this means your current feed will no longer work and you’ll need to manually import or enter bank statements into your Sage software until your bank connection is ready. In the UK, your Sage Bank feed will continue to work until 5 March 2020. After this your current feed will no longer work and you'll need to manually import or enter bank statements in to your Sage software
We’re pushing hard for all UK banks to adopt new Open Banking (PSD2) connections. If your bank switches before March 2020, we’ll automatically move you over to an Open Banking (PSD2) Ready connection. How do I know if this affects my bank feed?You can keep checking the status of your bank at www.sage.com/OpenBanking What happens in March 2020 if there's no Open Banking (PSD2) Ready connection for my bank?Your current feed will no longer work and you’ll need to manually import or enter bank statements in to your Sage software. We’re pushing all banks to switch to Open Banking (PSD2) Ready connections. We recommend you keep checking the status of your bank at www.sage.com/OpenBanking What happens if I have multiple feeds with different banks?You need to check what action you need to take for each of your banks at www.sage.com/OpenBanking I'm an accountant, can I authorise a bank feed on behalf of my clients?Only the account holder can authorise a bank feed, as you need to enter online banking login details.
Where can I go to get further help?
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