Authentication methods

By default, and in accordance with PSD2 regulations, all payments must be confirmed by the customer using Strong Customer Authentication (SCA). However, depending on the customer profile and contract terms, different processing options and exceptions may apply.

Currently, LHV Connect supports the following payment confirmation models:

Direct Processing

Payments are submitted in XML format (pain.001.001.09) and processed immediately, without additional user action or confirmation.

• No SCA is required.

• This option is typically available to licensed Service Providers, such as those authorised by the Estonian Financial Supervision and Resolution Authority (FI) or the UK Financial Conduct Authority (FCA), including entities from the EU and EEA.

• Separate daily and monthly limits for payment initiated via LHV Connect apply.

• This is the only supported method for initiating payments from Virtual IBANs or Indirect Scheme Participant accounts.

• Activation requires signing an additional contract appendix, and agreed security measures must be in place.

Pending Payments

Payments are submitted in XML format (pain.001.001.09) but are not processed immediately.

• This model is commonly used by companies not holding a PSP license.

• All submitted payments appear in the Customer Portal → Awaiting approval section.

• Payments must be manually approved via Customer Portal, in line with standard SCA requirements.

• Only after confirmation in Customer Portal will the payment be executed and debited from the account.

• Regular Customer Portal daily/monthly limits and confirmation rules apply.