• Payment service users to be better protected from fraud and misuse of their data
• All fees and charges for payment services should be transparent
• Level playing field between banks and non-bank payment service providers
• Provisions to ensure a better access to cash, especially in remote or rural areas

MEPs’ changes to the Payment services regulation were adopted with 39 votes to 1 and 3 abstentions. The regulation should provide more harmonisation in the EU for payment and electronic money services. It applies to banks, post office giro institutions and payment institutions.

Security of transfers

MEPs agreed that the unique identifier (a combination of letters, numbers or symbols specified by a PSP or a user, such as IBAN) should be verified free of charge for credit transfers. Moreover, PSPs should ensure strong customer authentication based on the use of two or more elements categorised as knowledge, possession or inherence and on a risk assessment.

Where a PSP fails to have in place the appropriate fraud preventing mechanisms it will be responsible for covering customer’s losses resulting from fraud. Technical service and IT solution providers could also be held responsible for damages (up to the transaction amount) caused by a failure, within the remit of their contract. Finally, online platforms would be liable if they were informed about fraudulent content on their platform and did not remove it.

The new text expands the right to refund to cases of “spoofing” where fraudsters pretend to be from a customer’s bank. MEPs extended that right to cases where fraudsters pretend to be from other types of organisation.

MEPs also called for Member States to invest substantial means in education on payment-related fraud, through a media campaign or lessons at schools.

Security of data

When provision of payment services entail the processing of personal data, MEPs want it to carried out only with the permission of the customer. Customers should be also able, through a dedicated dashboard, to opt-out from data sharing with third parties in a general way for all present and future data access permission requests and to withdraw access to their data.

Transparent charges

Customers should be informed about all charges prior to the initiation of the payment transaction, in a clear, transparent and accessible format. They should get, for example, information about currency conversions charges or any fixed fees for cash withdrawal.

The Payment services directive was adopted with 37 votes to 1 and 6 abstentions. The new directive should provide a level playing field for all PSPs, secure and efficient digital payments and better access to cash, especially in remote areas.

Better access to cash

In order to make assure better access to cash, especially in remote or rural areas, retail stores providing cash independently from a purchase (up to EUR 100) should be exempt from the rules. Similarly, ATMs that enable cash withdrawals but do not service payment accounts should be subject to a lighter registration process....

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