The European Council and the European Parliament have reached a provisional agreement to update the bloc’s rules on payment services. The primary aim is to support fraud prevention requirements, expand fee transparency, and expand protections for users across member states. The political deal introduces a new payment services regulation while revising the existing Payment Services Directive (PSD2) to reflect changes in how consumers and businesses handle digital transactions.
A central element of the package is a reinforced anti-fraud framework designed to address increasingly common techniques such as spoofing, in which criminals imitate a customer’s payment service provider (PSP) to convince the user to authorise fraudulent transfers. Representatives from the Council noted that the reforms mark a significant step in tackling fraud and improving consumer safeguards across the EU.
The new rules target fraud and strengthen liability
Under the agreement, PSPs will be required to exchange fraud-related data and verify that an IBAN number corresponds with the intended account holder before a transfer is completed. This verification already applies to instant euro transfers and will now extend more widely. If a PSP fails to apply mandated preventive tools, it will bear liability for resulting losses. The deal also restricts online platforms and search engines from promoting financial services unless the provider is properly authorised within the relevant member state.
The reform package introduces obligations for ATM operators to display all associated fees and the exchange rate before a withdrawal occurs. Firms offering card-payment services to merchants will also need to clearly disclose their charges, giving businesses and consumers greater insight into payment costs.
To support access to cash, particularly in rural areas, retailers will be allowed to provide cash withdrawals without requiring a purchase, subject to chip-and-PIN authentication and capped at EUR 150. Merchants will further need to align their trading names with those shown on customer bank statements to reduce confusion over charges.
The agreement also aims to accommodate emerging payment models by enabling regulated service providers to access account information more efficiently, supporting the development of new digital payment tools. The Council and Parliament will now work on the technical details before the package proceeds to formal adoption.
