D-day for PSD2 is now only three paydays away and here’s why that’s a big deal: Potential disruption to bank feeds may leave you with a headache and a backlog of manual work to do.
Many banks still haven’t completed the work to provide compliant direct connections. This means some clients feeds – particularly credit card feeds – won’t work after 14th March.
On 14th March 2020, Xero bank feeds set up with Yodlee (a third-party aggregation service) will cease. It’s because these feeds aren’t compliant with the EU’s second Payments Security Directive (PSD2). PSD2 came into effect on 14th September 2019 but has been subject to a six-month transition period.
Some banks have already delivered new, compliant feeds for business and personal current accounts. But some are still in development and coverage of company credit cards is much patchier.
The risk to accounting practices and their clients is that feeds will break unexpectedly. This will force you to revert to manually importing CSV files into Xero. If you don’t do bookkeeping daily or weekly, it may be some time before you notice the break. The result will be further work entering the missing bank or credit card data.
At Soldo, our Partner Team is working with accounting practices to minimise the risk of disruption. In this case, we’re also creating an opportunity for members of the Partner Programme to delight their clients.
Here are some things you can do to manage the risk:
1) Check out which Xero bank feeds are covered on this Xero help page.
2) Review Xero HQ for a list of clients and their banks, to assess who’s at risk.
3) Join our webinar at 11:00am Tuesday 7th January, 2020. Jake Leath from the Soldo Partner Team will be sharing some best practice on PSD2 preparations.
Sign up to our free webinar – Prepping Your Practice for PSD2 – by clicking the link and filling out the form.