Ryft is fully compliant with the European Union's Revised Payment Services Directive (PSD2). This directive aims to enhance consumer protection, promote innovation, and improve the security of electronic payments within the EU.
PSD2 is defined as:
A new European law that has introduced major changes that significantly impact marketplaces operating in Europe.
Moreover:
Any platform acting as an intermediary for both buyers and sellers, without itself selling that product or service, can no longer receive payments that are owed by buyers to sellers (these payments cannot land in the marketplace/ intermediaries bank account).
Not only does Ryft provide a compliant payment platform for businesses, but integrating Ryft's payment-as-a-service solution with your eCommerce marketplace removes the need to become a licensed, regulated payment service provider, ensuring that eCommerce marketplace owners does not have to manage the flow of funds between buyers and sellers.
The Buyer's funds are not paid directly into the Seller's bank account as Ryft acts as the intermediary. Instead, Ryft holds the funds in a secure account until the transaction is completed, ensuring compliance with PSD2 regulations.
At no point in time does Ryft own the Seller's funds. Ryft is simply acting as an intermediary to facilitate the payment process.