Evolving PSD2 Payment Standards in Magento-Authorize.net Deprecated

The world of eCommerce has been rapidly evolving with a steadily increasing customer base, and with multiple payment options that offer easy flexibility and payments. With a rapid rise in concerns regarding payment information security across the internet, there have been many guidelines that govern online payment processing. Magento has recently announced that it would be deprecating quite a few popular payment processing extensions, in tune with the PSD-2 (Payment Services Directive) standards, and an increased focus on ensuring security compliance.  One of the most popular Magento Payment Processing platforms that have been deprecated is “Authorize.net”, which has been deprecated for Magento 2.3.x versions and would no longer be offered in the upcoming Magento 2.4 version.

 

Online Payment Gateways in Magento

 

Let’s take a look into the PSD2 standards, and also know more about “Authorize.net”, its features and usage in Magento.

The Payment Services Directive (PSD2) Standards

With a focus on improving online security standards and protecting payment data security, the Payment Services Directive (PSD2) Standards had evolved primarily for provisioning the norms for online payment processing in the European countries, particularly with customer authentication. It has been introduced in 2015 and has been enforced for compliance from 2018 onwards.  The European Banking Authority has given merchants a transition time till Dec 31’ 2020 for complete adherence to these guidelines. The standards aim at protecting the payment data of online customers and enforce standards to be followed by merchants for accepting online payments.

The Payment Services Directive (PSD2) Standards primarily allow a third-party to process the customer’s payment from their bank account by interfacing with Application Protocol Interfaces (API’s) in the website.

The standards emphasize Strong Customer Authentication (SCA) that would provide a unique authentication for such transactions in the form of password, phone-verified payments, biometrics, and other unique customer data that can be used to verify a transaction.

With the above guidelines being enforced for online payment processing, Magento has deprecated many popular payment processing extensions such as Authorize.net (Including the Authorize.net Direct Post Extension), along with Worldpay, CyberSource, and eWay. Authorize.net is one of the most popular online payment processing platforms and is a part of Visa. It has been widely used in Magento for complete flexibility and easy integration enabling customers to directly complete the payment within the website itself. Authorize.net is a leading payment gateway and handles about $169 Billion online payments every year in close to a billion individual transactions.

The version has been deprecated for Magento 2.3.x versions, and will not be offered in the upcoming Magento 2.4 version. Store owners are advised to use an alternative payment option post the upgrade or continue with the deprecated version being offered for Magento 2.3.4 by downloading it from the official Marketplace.

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