- Pro
European banks now have more fraud prevention responsibilities
Comments (0) ()When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
Image Credit: Shutterstock
(Image credit: Shutterstock)
- PSPs in the EU will be liable for customer losses if they don’t have sufficient safeguards in place
- Sending PSPs must verify account details, receiving PSPs must freeze suspicious payments
- The EU is also calling for greater fee transparency and access to cash
The European Parliament and Council have reached an agreement on the Payment Services Regulation (PSR) and the Third Payment Services Directive (PSD3), with the aim of both protecting customers against losses and improving access to banking services and cash.
Under the new rules, payment service providers (PSPs) will be liable for customer losses if they fail to implement adequate fraud-prevention measures.
- Amazon Black Friday deals are live: here are our picks!
This includes making mandatory checks to ensure the payee name matches the account identifier; mismatches must lead to rejected payments to prevent losses in the first instance.
You may like-
VoP goes live – and millions of EU businesses aren’t ready
-
SMBs are losing out on billions over fraud fears
-
PayPal glitch triggers chaos as European banks freeze ‘billions’ in transactions
The EU wants banks to boost fraud prevention
PSPs are also required to offer strong customer authentication, while spending limits and blocking tools must be available to users.
On the flip side, recipient PSPs must freeze suspicious transactions to stop funds from being deposited into a dodgy account.
PSPs must also fully refund losses caused by impersonation fraud if the victim customer reports it to the police and informs their bank.
“Today’s deal is a win for the Parliament by establishing a liability provision for online platforms where fraud started,” regulation rapporteur René Repasi noted.
Are you a pro? Subscribe to our newsletterContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.But it’s not all about fraud prevention, because the EU is also calling for greater transparency around fees. For example, all charges, including currency converstions and ATM fees, must be disclosed before payment is taken.
The European Union also wants to improve access to cash in an increasingly digitized world, offering retail stores permission to process cash withdrawals of €100-€150 without requiring a purchase.
Further strengthening competition in this market, the EU is calling for reduced barriers for open banking, while clear user dashboards to manage data access permissions puts more control in customers’ hands.
“This deal is a significant step toward a more open and resilient single market for payments,” directive rapporteur Morten Løkkegaard explained, adding that “cash remains a genuine and convenient payment option.”
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.
Craig HaleWith several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!
You must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
Logout Read more
VoP goes live – and millions of EU businesses aren’t ready
SMBs are losing out on billions over fraud fears
PayPal glitch triggers chaos as European banks freeze ‘billions’ in transactions
EU plans to block Apple, Google, Meta and other US companies from its shared financial data system
Payment resilience: a business priority in a cashless world
Chat Control: EU lawmakers finally agree on the voluntary scanning of your private chats
Latest in Pro
Asahi confirms cyberattack leaked data on 1.5 million customers
Looking for an amazing saving? This exclusive IDrive deal is the biggest cloud storage discount we've seen this Black Friday
Need more space for your photos? This Carbonite cloud storage offer is a steal this Black Friday at 60% off
The next frontier for AI-ready connectivity: efficiency in deployment
New macOS malware chain could cause a major security headache - here's what we know
AWS might now have around 900 data centers - that's twice as many as previously thought
Latest in News
EU clamps down on online fraud and hidden fees affecting online payment platforms
Europe wants to ban social media for under 16s – here's all we know
Sony just launched the ‘world’s largest’ 200MP smartphone sensor – here’s which phones could get it
The Nintendo Switch 2 Pro Controller is now supported on Steam
Scary Chinese sim shows swarm of drones blocking Starlink out over Taiwan
Android-powered desktop PCs are coming – and I think they'll be exciting
LATEST ARTICLES- 1Europe wants to ban social media for under 16s – here's all we know
- 2ChatGPT vs Gemini vs Perplexity: Which AI is your smartest shopper?
- 3The Nintendo Switch 2 Pro Controller is now supported on Steam
- 4Asahi confirms cyberattack leaked data on 1.5 million customers
- 5Sony just launched the ‘world’s largest’ 200MP smartphone sensor – here’s which phones could get it
