Payment Service Providers (PSPs) across the EU will be subject to minimum security requirements aimed at ensuring that internet payments are more efficient and secure. The new measures are expected to be implemented later this year (1 August 2015), following the publication of its final guidelines on the security of internet payments by the European Banking Authority (EBA) in December 2014.
The EBA’s guidelines are designed to provide a solid legal basis for payment security across all EU Member States while the revised Payment Services Directive (PSD2) is finalised.
What this means for you
Concerned by a rise in fraud losses, including card-not-present fraud, the EBA’s guidelines require PSPs to carry out strong customer identification before proceeding with an online payment. PSPs will also be required to initiate customer awareness programmes to help customers to understand and employ best practices when conducting internet payments.