Brussels, BELGIUM – Today, the Council of the European Union adopted its general approach on two key legislative files – the Payment Services and Electronic Money Services Directive (PSD3) and the Payment Services Regulation (PSR) – aimed at modernising and harmonising payment rules across the EU.
The Computer & Communications Industry Association (CCIA Europe) commends Member States for their balanced stance on combating payment fraud under the PSR. CCIA Europe urges the Council to stand firm on its position during the upcoming negotiations.
At the same time, the Association warns that several unresolved issues could backfire.
A key concern is the disproportionate unconditional refund right for merchant-initiated transactions (MITs), which would mandate merchants to automatically proceed with all refund claims, even when the claims are abusive. The Council left these provisions unchanged, risking the incentivisation of abuse and increased costs for merchants.
Similarly, technical service providers (TSPs) – the companies that support the infrastructure behind electronic payments – remain exposed to excessive liability risks and burdensome outsourcing obligations unless the current wording is improved.
Another issue is the one-year deadline for the European Commission to report on digital wallets, as part of the PSD3 review, which risks duplicating existing or upcoming EU rules.
As this legislation moves into final negotiations between the Council, Parliament, and Commission, CCIA Europe urges co-legislators to fix these unresolved critical issues.
The following can be attributed to CCIA Europe’s Policy Manager, Leonardo Veneziani:
“The EU Council’s balanced and effective approach to combating payment fraud under the PSR is a positive step. Member States will have to stand firm during negotiations with Parliament, in particular to avoid the introduction of a flawed liability regime.”
“Moreover, several key issues still need to be resolved, as the new EU framework for payment rules otherwise might undermine innovation – negatively impacting merchants, payment providers, and consumers alike.”
