European Union negotiators have reached a provisional agreement on a new framework aimed at reducing online payment fraud and improving consumer protection. The measures will place greater responsibility on banks and payment service providers, while also introducing new obligations for online platforms.
Under the draft rules, payment service providers will be required to reimburse customers when losses occur because appropriate fraud-prevention systems were not in place. Providers will also be obliged to block or investigate transactions that appear suspicious, giving consumers greater protection against unauthorised payments.
Online platforms will face new duties as well. If they fail to remove fraudulent advertisements, they may become liable for the costs incurred by banks when compensating affected customers. The aim is to curb scams that originate through marketplace listings, social media, or digital advertising.
Beyond fraud prevention, the legislation seeks to improve transparency around payment charges, ensure that people living in rural areas can access cash more easily, and streamline information sharing between banks and other payment providers. Another requirement will oblige banks to maintain access to human customer support rather than relying solely on automated systems or chatbots.
The agreement must now be formally approved by both the European Parliament and the Council of the European Union before it is transposed into law.
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