--- title: "EBA Q&A 2018_4399 — Q&A — Electronic chip transactions authenticated with a hand [Final Q&A]" shortTitle: "EBA Q&A 2018_4399 — Q&A — Electronic chip transactions authenticated with a hand [Final Q&A]" answer_id: EBA_QA_2018_4399 status: "Final Q&A" type: qa instrument_type: qa authority: EBA binding: false binding_character: non_binding legal_status: in_force regulation: "PSD2" psd2_level3: true mica_level2: false legal_basis: "Article 96(6) PSD2" date: 24 July 2020 source_link: https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4399 lifecycle: "Final Q&A" text_version: "EBA Q&A register, 24 July 2020" source_url: "https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4399" check_status: matched verified: true last_checked: 2026-10-26 checked_against: "the EBA publication" source: prepared_by: "EBA" published_by: "EBA" published_in: "EBA Single Rulebook Q&A tool" evidence: prepared_by: "Answer prepared by the EBA." locator: "EBA Q&A register entry 2018_4399, field 'Answer prepared by'" document_type: "qa_answer" legal_nature: "not_legislation" addressees: "not stated in the document" dates: published_on: "2020-07-24" question_submitted_on: "2018-12-03" locators: published_on: "EBA Q&A register entry 2018_4399, field 'Final publishing date'" question_submitted_on: "EBA Q&A register entry 2018_4399, field 'Submission date'" lifecycle_label: "Final Q&A" --- **Answer by the EBA, published in its Q&A tool · not legislation · published 24 Jul 2020 [Final Q&A]** *Final Q&A · EBA Q&A register, 24 July 2020 · Checked against the EBA publication on 26 Oct 2026 · [Official source](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4399)* | | | |---|---| | **Full title** | EBA Q&A 2018_4399 — Q&A — Electronic chip transactions authenticated with a hand \[Final Q&A\] | | **Prepared by** | EBA | | **Published by** | EBA, in the EBA Single Rulebook Q&A tool | | **Reference** | EBA_QA_2018_4399 | | **Document type** | Q&A | | **Legal nature** | Not legislation | | **Addressees** | Not stated in the document | | **Dates** | Published 24 July 2020; question submitted 3 December 2018 | | **Legal basis** | Article 96(6) PSD2 | | **Related instruments** | None recorded | | **Text on this page** | Word for word — the full text of the EBA publication | **Electronic chip transactions authenticated with a hand signature** ### Question As a Payment Service Provider (PSP) acquirer, how should we report the German chip + signature transactions in the “EBA fraud report under PSD2” given the fact this kind of transactions are non-Strong Customer Authentication (SCA) and do not fall under any allowed exemption? ### Background Even after the 14/09/2019, acquirer PSPs will still acquire non-SCA transactions made with German chip cards, authenticated by the cardholder signing the terminal voucher. This is due to the fact that German issuers are still migrating from Chip+signature to Chip+PIN, but the migration will still be in progress after 14/09/2019. The German laws consider electronic chip transactions authenticated with a hand signature as paper-based, non-electronic, in opposition to the definition of an electronic transaction according to the RTS/PSD2. Therefore German PSP’s will report their transactions to EBA as paper-based non-electronic. Please clarify whether acquirers based in another EEA country than Germany should align on the German law or on the RTS/PSD2 to classify these chip & signature transactions. In the case of PSP are requested to follow the RTS/PSD2, we will face the issue of not being able to classify these non-SCA transactions in any category of the “EBA fraud report under PSD2” as they do not match any allowed exemptions. More information about the German law on http://dip.bundestag.de/btd/18/125/1812568.pdf Die Koalitionsfraktionen der CDU/CSU und SPD betonten, dass mit der Zweiten Zahlungsdiensterichtlinie für bestimmte Vorgänge im Zahlungsverkehr eine starke Kundenauthentifizierung vorgeschrieben werde. Diese gelte etwa dann, wenn der Zahler einen elektronischen Zahlungsvorgang auslöse, d. h. die Zustimmung zum Zahlungsvorgang elektronisch erfolge. Nicht von dieser Vorschrift erfasst würden Zahlungsvorgänge, die schriftlich oder telefonisch ausgelöst würden, zum Beispiel mit Unterschrift ausgelöste Kreditkartenzahlungen am Point of SaleTerminal. *** ### Answer Q&A 2018\_4031 clarified that card-based payment transactions are subject to the requirement in Article 97(1)(b) of Directive 2015/2366 (PSD2) to apply strong customer authentication (SCA). In addition, Q&A 2018\_4108 clarified that card-based electronic payment transactions that require the signature of the payer at the point of sale for authorisation or authentication fall under the scope of Article 97(1)(b) PSD2. Therefore, card-based electronic payment transactions where a signature of the payer at the point of sale is used are subject to SCA according to Article 97(1)(b) PSD2. In accordance with Guidelines 2.11, 7.11 and 7.12 of the EBA Guidelines on fraud reporting under PSD2 (EBA/GL/2018/05) as amended by the EBA Guidelines EBA/GL/2020/01, card payments should be reported both by the payer’s payment service provider (PSP) (the issuer), and by the payee’s PSP acquiring the payment transaction (the acquirer) as follows: from the issuer’s perspective, under the Data Breakdown C in Annex 2 of the Guidelines; and from the acquirer’s perspective, under the Data Breakdown D in Annex 2 of the Guidelines. From the acquirer’s perspective, card-based electronic payment transactions to which SCA is applied should be reported in accordance with Data Breakdown D in Annex 2 of the Guidelines, under the category 4.2.1.2 (“Of which authenticated via strong customer authentication), or, as applicable, 4.2.2.2 (“Of which Authenticated via strong customer authentication”). *** **Source:** [EBA original document](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2018_4399) ## Related Level 1 articles - [Article 96 — Incident reporting](../../../articles/96.md)