EBA launch public PSD2 consultation
The European Banking Authority (EBA) launched a public consultation regarding the revised Payment Services Directive (PSD2) on 2 August 2017. The consultation focuses on the EBA’s draft guidelines on reporting requirements on statistical data on fraud under the PSD2. The consultation closes on 3 November 2017.
Why is the consultation taking place?
According to the EBA, payment fraud data is difficult to obtain in the EU; it is not reliable and not streamlined across the EU and its Member States. This, therefore, prevents payment fraud to be accurately recorded and monitored.
What do the guidelines entail?
The guidelines are addressed to payment service providers and competent authorities. They aim to contribute to the objective of the PSD2 to increase the security of retail payments in the EU. The PSD2 requires payment service providers to “provide statistical data on fraud relating to different means of payment to their competent authorities”.
The guidelines were developed by the EBA in close cooperation with the European Central bank (ECB). They aim to ensure that the fraud reporting requirements under the PSD2 are implemented consistently among Member States. This is also extended to ensure that the data provided by competent authorities to the EBA and ECB is reliable.
What is PSD2 again?
As previously reported on our blog, PSD2 is the legislation that will be applied across the EU and its Member States by 13 January 2018. It is an update from the original directive (PSD) adopted in 2007. The PSD created a single market for payments and the foundation for a Single Euro Payments Area (SEPA). Many new entrants, especially in the tech and fintech area, are outside the scope of the PSD and, therefore, not regulated by the EU. The PSD2 aims to improve security and fraud prevention, but at the same time encourage innovation and competition. In other words, PSD2 paves the way for a Digital Single Market.
The consultation paper can be viewed in its entirety on the EBA website here.