PSD2, or the Payment Services Directive 2, is an EU regulation designed to improve security, transparency, and competitiveness in the world of European payments and banking.

Under PSD2, financial institutions must allow customers to grant trusted third parties access to their account data for payments and accessing financial products and services. Payment providers must ensure that cardholders are who they say they are. Brokerages must be transparent about exchange rates. Finally, businesses must remove credit card charges.

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