The Confirmation of Funds service is part of open banking and PSD2. PSD2 is the EU's revised Payments Services Directive. It says that banks need to be able to confirm the balance of certain accounts to regulated card-based payment instrument issuers. PSD2 also sets clear rules for these issuers to ensure the security of the account holders.
In certain cases – for example before initiating a payment – third-party providers may want to check an account holder’s funds with KBC. In other words, the third-party provider may ask KBC whether an account has enough funds for a certain purchase. KBC will then respond with a simple yes or no.
The end customers have to give their explicit consent before this service can start. First of all, the licensed third-party provider presents a consent flow to the account holder in the KBC environment. The purpose of this is to get the account holder's consent first. After that, the funds can be confirmed. The third-party provider can use the Confirmation of Funds API in order to plug the relevant data into its application. And the customer experience improves as a result.
Who can use Confirmation of Funds?
The users of the Confirmation of Funds API are developersof:
Regulated, licensed third-party providers
How does this solution work?
Overall, the first step is the registration process of the third-party provider with KBC. This then gives access to the Confirmation of Funds API.
The user is led to the KBC environment. There the user can authorise the third-party provider to use the Confirmation of Funds service. It is important to point out that this consent is permanent.
The third-party provider can then call KBC with a specific amount.
It must be remembered that developers have to gain accreditation as third-party providers from the National Bank of Belgium. They also need to have a valid eIDAS certificate under PSD2, or prove that they have applied for one.
Before using the Confirmation of Funds API, the developer has to deploy the Consent API to gain the end customer’s consent in the KBC environment.