Syedur Rahman of Rahman Ravelli outlines EBA changes to fraud reporting under PSD2.

The European Banking Authority (EBA) has published an amendment to its 2018 guidelines on fraud reporting under the revised Payment Services Directive (PSD2).

The changes are the direct result of clarifications provided more recently by the European Commission on the application of strong customer authentication (SCA) to certain types of transactions.

The amendment that the EBA has brought in introduces two new data fields for reporting transactions where SCA is not applied for reasons other than an exemption to SCA under the Commission Delegated Regulation (EU) 2018/389. The aim is to make sure that these transactions are reported in a consistent and correct manner across the both the European Union (EU) and the European Economic Area (EEA).

The EBA has also taken the opportunity to make certain editorial changes to the guidelines in an attempt to bring greater clarity to them. It has now published a consolidated version of the updated guidelines.

The amendments will apply to the reporting of payment transactions initiated and executed from 1st July 2020. They have been drafted according to Article 16 of the EBA Regulation and in fulfilment of the EBA mandate under Article 96(6) of Directive (EU) 2015/2366 on payment services in the internal market (PSD2).

PSD2 is itself one of the biggest regulatory challenges that the payments industry faces. Having been introduced to encourage competition and participation in the payments industry and to harmonise consumer protection and payment providers’ rights and obligations its ultimate aim is a safer and more integrated market.