EU Sets Stricter Rules for Online Payments. Who Pays for Fraud?

The agreement on Payment Services Regulation (PSR) and Third Payment Services Directive (PSD3) provides a clear answer to who bears responsibility when something goes wrong. And it’s not trivial – we’re talking about millions of transactions daily.

Banks Will Pay if They Fail

The biggest change? If a bank doesn’t implement proper protection mechanisms, it must cover the customer’s loss. Banks will have to verify that the payee’s name matches the account number. If not, they’ll simply refuse the payment.

For unauthorised transactions – when a fraudster changes or initiates a payment – the bank refunds the full amount. This also applies to “impersonation fraud”, when someone pretends to be a bank employee and convinces the customer to approve a payment.

Online Platforms Will Pay Too

An interesting detail: platforms will be liable if they don’t remove fraudulent content. When a bank alerts a platform about fraud and it doesn’t respond, the platform must reimburse the bank that already refunded the customer.

Ads for financial services on large platforms and search engines will have to prove they’re licensed in the relevant country.

What Does This Mean For E-commerce?

Higher protection should increase trust in online shopping. Fewer frauds, clearer rules. But watch out – if you operate a platform with ads or affiliate content, you’ll need to be more vigilant.

The deal still needs formal approval before it comes into force.