Using PayPal Pro UK for CC payments - No 3DS secure support in Shopify to meet the EU's PSD2 regs?

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Excursionist
35 0 10

I am using PayPal Website Payments Pro UK to accept card payments with the Shopify checkout.

 

The other week I received an email from PayPal telling me that come September 2019 I will need to have a checkout process that meets the new European PSD2 (The Payment Services Directive 2.0) standards of payment authentication when accepting card payments from my customers. Essentially the email linked over to the following page of the PayPal UK website:

 

https://www.paypal.com/uk/webapps/mpp/psd2

 

Yet there's no mention of 'Shopify' on that PayPal link above and equally so no mention of 'PSD2" anywhere on the Shopify website, or on here really (as far I can search anyway). For something so crucial, does anyone know what is happening at Shopify to prepares for the authentication requirements of the EU's new PSD2 directive (such as 3D secure support on the actual Shopify checkout etc.)?

 

Thanks in advance for any possible reassurance that you folks may bring to the table with this.

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Community Manager
Community Manager
2268 147 307

Hi @TeeKay,

 

Nick here from Shopify. 

 

Really great question and thanks for bringing this to our attention. I have not heard about this update from PayPal myself even as of yet. With situations with updates like this, the Shopify team normally work with the payment gateways to include the updates and make the transition process as seamless as possible from both parties. September 2019 is still a while away so I wouldn't expect any mention of this for another few months at least, but I will still investigate this internally to find out more. Should there be any updates at all on this which I can share with you, I will. 

 

Thanks again for reaching out about it though. 

 

All the best, Nick

Nick | Social Care @ Shopify
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Excursionist
35 0 10
Thanks Nick

Slightly worrying that you hadn’t heard of this PayPal and PSD2 email about needing to comply. Nonetheless hopefully you do hear something of a positive nature regarding this very shortly, when which if you can post any such useful info here then it would be highly valued indeed.

Have a good day ahead Nick.
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Excursionist
26 0 13

 

I am also concerned. While September might be a while away implementation is a lot closer.

 

"While becoming compulsory in September 2019, payment service providers like card issuers will start implementing come April 2019."

 

https://https://www.paypal.com/uk/webapps/mpp/psd2

 

An update would be appreciated.

 

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Excursionist
26 0 13

To judge from the response that I have just received from support, they see this more as an opportunity for businesses to switch to Shopify payments because they certainly have no intention of being ready in April for this, they keep talking about September 2019, yet I just made a few telephone calls and there is no question that this is going to start impacting way before then. Not for the first time Shopify showing their US centric approach. Woo commerce looking more likely each day that passes.

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Excursionist
35 0 10

That's the first thing that crossed my mind when I got the email from PayPal i.e. Shopify may try and use this to transfer people onto to Shopify Payments. The trouble is that my products/industry is not supported my Stripe (Shopify payments) hence I cannot transfer to them even if I wanted to, I do not have that luxury.

 

I hope they (Shopify) get something sorted for this sooner rather than later...

 

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Excursionist
35 0 10

Hello Nitsa,

 

Did you find out anything more regarding Shopify and this upcoming PSD 2.0 regulation?

 

There's not really a lot of info on it at all from the eCommerce crowd, it seems to only really be covered in detail with banking websites and banking blogs.

 

Are you using PayPal PayFlow Pro (PayPal Payments Pro) whereby you have your customers enter their card details directly into the Shopify checkout?

 

Or are you solely using PayPal Express? Because if you are only using PayPal Express (i.e. whereby customers who want to pay by card use the PayPal 'guest' checkout' feature) then you don't need to worry about anything as PayPal will implement all the necessary authentication requirements within their 'Express' (offsite) payment gateway.

 

I'm currently using PayPal PayFlow Pro (PayPal Payments Pro) hence this upcoming PSD2 regulation is a substantial concern.

 

Many Thanks

 

 

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Excursionist
26 0 13

Hi Tee Kay,

Yes I am also with PayPal Payments Pro which is why I have had concerns. I had a call last week from PayPal business development asking me where I was with this and I told them the situation. They asked me to contact Cardinal Commerce who are handling 3DS on their behalf but they confirmed to me that Shopify is not compatible with them. In fact, Shopify is the only e-commerce site that is not. I know the reason for this well as it came up in another context some time ago. Basically, Shopify have their shopping cart/checkout "locked down" and do not allow any third party scripts to run on it. They will say this is for security reasons. This is not a view shared by other e-commerce providers.

 

Whatever.

 

I do know that that Visa and MasterCard will start implementing this from April for European issued cards. I have had conversations with Shopify support and their vagueness about it is enough to make me realise I have to take steps to switch away from Shopify. As always they are US centric in their approach to things, if this had been a US requirement, 3DS would have been in place yesterday. My best guess is that this is not going to happen, or if it does it will be too late for me as I have no intention of being caught with my pants down and so I will be moving.

I don't doubt that after this little exchange I will have another email inviting me to switch to Shopify payments rather than an email confirming that they will shortly have 3DS in place.

This might not have been of much comfort to you but it's where we are at at the moment.

Cheers

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Excursionist
35 0 10

Hi Nitsa,

 

I just emailed Cardinal Commerce about a couple of hours ago after feeling frustrated with lack of info on the WorldWideWeb, but from what you have just said it will most likely be a rather pointless email and of course a rather fruitless response from Cardinal.

 

I know that Shopify Payments (Stripe) has managed to implement 3DS recently, as you can read this here in the grey coloured box:

 

https://help.shopify.com/en/manual/payments/third-party-providers/3d-secure-checkout

 

So it seems as we both originally thought, Shopify will use this 3DS 2.0 regulation to get the last few people over onto Shopify Payments (Stripe).

 

I can't use Shopify Payments (Stripe), as mentioned previously; they do not support the type of product in which I retail (health industry), so that's simply not an option for me. If I could I would happily use Shopify Payments as it would save me a ton in the transaction fee charges from Shopify and I could accept ApplePay too. But it's not an option/luxury that I have frustratingly.

 

Can I ask; are you ok to use Shopify Payments (Stripe)? Or like myself are you also unable to use Shopify Payments (Stripe)? Or do you choose not to for alternative reasons to myself?

 

Thanks again

 

 

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Excursionist
26 0 13
Hi Tee Kay,

I can use Stripe but 80% of my customers use their own PayPal accounts to
pay rather than a debit/credit card, it's convenient for them and it's an
even higher percentage for European customers. Removing that convenience
can only hurt my sales.

That is not the only reason I am moving however. The blog function on
Shopify is like something from the middle ages. The monthly cost of plug
ins to run anything other than a basic site is extortionate. I know an app
developer who has what is essentially the same app on WordPress and
Shopify. The cost is $12 monthly on WordPress and $39 on Shopify.

There are more reasons but at the end of the day my business and Shopify
are no longer the best fit.

Good luck with whatever you decide.


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