Economic Affairs Committee mitigates for new online payment rules

Friday 21 February 2014 06:34 CET | News

Rules governing online payments by electronic transfer need an EU-wide update in order to upgrade security, reduce processing fees and widen consumer choice, according to the Economic and Monetary Affairs Committee MEPs endorsing draft legislation.

The new rules are also aimed at providing online payment service users with a uniform set of rights, of which they would have to be informed.

Under the new rules, payment service users would have to be told what information, such as a unique identifier, must be provided in order to complete the payment. All charges, execution times, contact information and where applicable exchange rates, would have to be clearly stated.

Unauthorised payments would have to be refunded within  maximum  24 hours of their being noticed. Clients could be obliged to bear the losses resulting from the use of a lost or stolen payment card or device up to a maximum of EUR 50.

Institutions providing payment services would have to be authorised by a member state, after meeting the security requirements laid down in the legislation and would have to be insured. Member states would have to establish a public register of such institutions.

When it comes to cost control, payment service providers would be required to disclose the actual cost of processing payments on request. Payers and payees would be required to pay the charges levied by their respective service providers. Member states would have to ensure that the charges imposed on the payee do not exceed the service charges, to be laid down in forthcoming EU rules, for using a specific payment device or means of execution.

In addition, as a result of the new rules, a payer using an online account would have the right to use payment software or devices provided by an authorised third party and have his payments executed on his behalf by this provider.

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Keywords: online payments, European Union, electronic transfer, online security
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce