The Council of the European Union has reached a consensus on two significant legislative files: the Payment Services and Electronic Money Services Directive (PSD3) and the Payment Services Regulation (PSR). These initiatives are designed to update and unify payment regulations across the EU.
The Computer & Communications Industry Association (CCIA Europe) praised Member States for their balanced approach to tackling payment fraud under the PSR. The association encouraged the Council to maintain its stance during forthcoming negotiations.
However, CCIA Europe expressed concerns over unresolved issues that could lead to negative outcomes. One major issue is the unconditional refund right for merchant-initiated transactions (MITs), which would require merchants to process all refund claims, potentially leading to abuse and increased costs.
Technical service providers face potential risks due to excessive liability and challenging outsourcing obligations unless adjustments are made in the current wording of these directives. Additionally, there is concern about a one-year deadline for the European Commission's report on digital wallets as part of PSD3 review, which might overlap with existing or future EU rules.
As final discussions among the Council, Parliament, and Commission begin, CCIA Europe urged lawmakers to address these critical unresolved issues.
Leonardo Veneziani, Policy Manager at CCIA Europe, stated: “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.”
He further added: “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.”