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Open Banking and PSD2

What is Open Banking and PSD2?

Open Banking and the second Payments Services Directive 2 (PSD2) are separate legislation changes that have been introduced in phases from 2018.

From 14 September 2019 the way your accounting software connects to your bank account transactions data, through bank feeds, may change depending on whether they are using services like Yodlee or are already using compatible feeds.

The UK regulator the FCA, has provided a six month adjustment period, which means that UK banks can continue to allow customers to use Yodlee bank feeds from 14 September until 14 March 2020.

What are the benefits of Open Banking?

  • Open Banking drives competition within the bank industry to give you more choice and more control of your data.
  • These new connections give you faster access to bank and payment information.
  • You will gain significantly better security when conducting transactions online or connecting to your bank data through accounting software.

How will my Bank Feeds change?

There are three scenarios that depend on the bank you connect with and if their connection is ready for the changes.

Scenario 1

Your connection is Open Banking (PSD2) ready and you can continue as normal

Scenario 2

Your connection is not yet ready for Open Banking (PSD2) but your feed will continue to work until at least March 2020

Scenario 3

Your connection is not yet ready for Open Banking (PSD2) and your feed will stop working on 14 September 2019

How can you check if your bank is compatible with Open Banking?

Each of the three main bookkeeping applications we support have produced methods for their customers to check bank feed compatibility with Open Banking. Please see these methods below:

If you are a Sage user your can use this helpful tool to check if your bank is compatible with Open Banking:

  Sage Open Banking (PSD2) Checker

Further information about Open Banking from Sage:

If you are a Xero user they have compiled a list showing if your bank is compatible with Open Banking and what if any action is required

  Xero Open Banking Status

Further information about Open Banking from Xero:

QuickBooks is swapping Standard feeds with new Direct feeds which are compatible with Open Banking. When these new feeds go live, you will see a banner on the Banking page and if you are the Master Admin you will get an email from Quickbooks explaining the steps that you need to take.

Further information about Open Banking from QuickBooks:

Do you sell online?

PSD2 could also effect your payment services

PSD2 not only affects the way bank data is pulled into your bookkeeping software, it also enforces Strong Customer Authentication (SCA) for merchants selling online.

If you accept payments online we recommend you review the payment gateway services you using to see if the code your are using to integrate with these services is kept up to date and complies with PSD2.

Here is some information about PSD2 from some of the most popular payment gateway providers:

Cloud Bookkeeping software we support

Xero Accounting Silver Partner
Sage Accounting Club
Intuit Quickbooks Platinum Partner

We are certified in

Xero Advisor Certified
Sage Certified Expert in Accounting
Intuit Quickbooks Certified ProAdvisor Online
Intuit Quickbooks Certified ProAdvisor Online
Intuit Quickbooks Making Tax Digital ready