1. What will PSD2, or the updated Payment System Act, bring?
In 2018, Komerční banka will being providing new services in the area of secured exchange of banking information with third parties based on Act No. 370/2017 Coll., on the Payment System, which entered into force on 13 January 2018. We are thus joining the ranks of Czech and European Banks required under the updated European Payment Service Directive 2 to provide these new services. The new services are intended for so-called third-party apps, which can be used by clients with accounts at Komerční banka who have at least one direct banking channel.
2. What are third parties?
Third parties can be banking or non-banking institutions that have obtained a licence to use API-related services from the Czech National Bank. If these third parties do not identify themselves with such licence to the bank, the bank will not allow them to use the new services on KB client accounts. Typically, third parties will be other banks, e-shops, accounting firms, banking service aggregators etc.
All third parties interested in providing their apps to KB clients and using the KB API will always be checked whether they fulfil security and technical conditions. At the same time, third parties will always identify themselves with a certificate (electronic seal) that will guarantee their identity. Should Komerční banka suspect a third party of fraud, it will immediately block it access to the KB API.
3. What are third-party apps?
These are apps that have access to banking clients’ accounts even though such apps are not banking apps. The bank only provides information from the account of the respective client and sends it (with the client’s consent) to the third party, which then utilises it.
4. What services will Komerční banka provide?
Provision of a client’s account payment information and account payment history
If a KB client requests that data about his/her account be made accessible to a third party and confirms this request in the MojeBanka app, the bank will provided this third party (provided it deems this third party credible) with the requested information via the API, and the third party will then use it in its app. Typically, the third parties (even banks) will be those that aggregate/collect information about all accounts from various banks in one location, e.g., in the online banking of one bank.
If a client has more than one account at KB, we will allow him/her to permit the service for only those accounts he/she chooses. The scope of the information provided from the specified accounts include: transaction history for a certain period, account balance (currently available balance and current balance, including permitted debit), and a list of the client’s accounts. Details about the scope of information provided will be included in the API Catalogue section on the KB website.
Making payments from a KB account via a third-party app
If a KB client requests the activation of the service and confirms the request in the MojeBanka app, the bank will allow him/her to make payments from his/her KB account through third-party apps. The client will always authorise the payment through the KB MůjKlíč app. The client will choose a special limit for payments made through third-party apps.
This service can be utilised by, for example, e-shops, which will allow a client to pay for a purchase from his/her bank account directly from their website.
Provision of information about sufficient funds on a client’s account
If a KB client requests activation of the service and confirms the request in the MojeBanka app, the bank will allow third parties (if the bank considers them credible) to make queries via the KB API about whether the client has sufficient funds on his/her payment account. The third party will make a query about a specific amount, and the bank’s response will either be positive or negative, depending on whether the client has sufficient funds on his/her account. The bank will not provide information about the exact balance under this service.
The third party will typically be an independent issuer of a means of payment, such as a commercial chain that issues to its clients/customers a means of payment tied to the payment account maintained at the bank. This provider will then make a query about the funds on the client’s account maintained at the bank. Should there be sufficient funds on the account, the provider will pay for the purchase on behalf of the client and then claim the funds from the client in a special way, such as by invoicing, collection, etc.
5. Will a fee be charged for the new services?
The new services are free of charge, and account transactions are charged according the KB Fee Schedule as online banking payments. For payments made through third parties, the agreed Individual Fees for the Internet will apply.
6. Will using the new services be secure?
We pay great attention to security! If a KB client requests a service, he/she will have to first allow it via the MojeBanka channel. A client can revoke consent to a service at any time via the MojeBanka app or, should the app not be accessible, at the Contact Centre (Direct Banking Help Line).
To authorise payments made through third-party apps, KB clients will use the new KB MůjKlíč app, which will be installed on their smart phone.
7. What is API?
For third-party apps, Komerční banka will provide information via the API (Application Programming Interface), through which secure communication and online exchange of information will take place. Komerční banka will support the Czech Standard for Open Banking, which it helped created with other banks in the Czech Banking Association. A detailed description of the interface for developer will be provided in the API Catalogue when issued.
8. When will the KB API Catalogue be available?
We are already taking steps leading to the full support of the KB banking API, but neither the API Catalogue nor the test interface is available at this time. We will be providing information about the launch dates of the services and the API Catalogue on the KB website. We expect this to be in the first half of 2018. The portal will contain complete technical documentation that will allow third parties to connect to Komerční banka’s systems, including the test interface.
Komerční banka will support the Czech Standard for Open Banking while observing the Announcment of the Ministry of Finance and the Czech National Bank dated 1 December 2017 for the transitional period under Act No. 370/2017 Coll., on the Payment System, regarding the possibility of indirect submission of payment orders and disclosure of account payment information to third parties. It will allow the use of the new service of indirect payments through third parties and provide (with the client’s consent) these third parties with information about its clients’ payment accounts. Third parties can utilise this services via “screen scraping” (machine reading of data from a screen). For third parties to utilise this new service, they must register on firstname.lastname@example.org. They can also use this e-mail address to submit technical questions concerning the new services.
9. What will KB allow as of 13 January 2018 once the Payment System Act enters into force?
Komerční banka will make it possible to use new indirect payment services through indirect payment service providers (so-called third parties) and provide (with the client’s consent) these third parties with information about its clients’ payment accounts. These services are available to third parties through a procedure known as “screen scraping” (machine reading of data from a screen). Third parties must register at the address email@example.com to make use of these services. They can also use this email address to submit technical questions about the new services.
Announcment of the Ministry of Finance and the Czech National Bank of 1 December 2017 on the transitional period under Act No. 370/2017 Sb.
Exchange rates in API
Under the KB Open Banking API, Komerční banka provides a service for obtaining information about KB Exchange Rates through direct queries about resource exchange rates using the REST API service. This service makes it possible to acquire the below-specified information concerning KB CZ exchange rates.
The resource for obtaining information from the exchange rate table provides:
- Current KB exchange rates – exchange rate information from the respective date or the latest exchange rates issued for the respective date.
- Historical KB exchange rates – information about exchange rates from the specified date, up to three years retrospectively.
- Current KB exchange rates for the selected currency – information for the defined menu from the respective date.
- Historical KB exchange rates for the selected currency – information for the defined menu from the specified date, up to three years retrospectively.
Information provided through API KB are localised only into Czech.
Exchange rates in API.