Glossary
Dynamic Linking
Dynamic linking is a security process mandated by the EU Revised Payment Services Directive (PSD2) that enhances the security of electronic payment transactions. This process involves linking each transaction to a unique, dynamically-generated authentication code. The purpose of this code is to confirm that the details of the transaction—such as the amount and the payee—have not been altered after the transaction was authorized by the payer.
This requirement is a part of the Strong Customer Authentication (SCA) criteria under PSD2, which aims to reduce fraud and make online payments more secure. Dynamic linking ensures that any attempt to tamper with transaction details after authorization can be detected, as the authentication code would no longer match the altered transaction data. This process is essential for all payment service providers operating within the European Economic Area (EEA) to implement, as it significantly strengthens the integrity and security of the payment process.
By ensuring that each transaction is tightly secured with a unique code that verifies its details, dynamic linking not only protects consumers from potential fraud but also enhances trust in digital payment systems, contributing to a safer and more reliable digital market in Europe.