Online Payments: EU Parliament Committee Sides with Big Banks That Want to Escape Responsibility

Brussels, BELGIUM – Today, the European Parliament’s Economic and Monetary Affairs Committee (ECON) adopted its position on the Payment Services Regulation (PSR), which introduces new rules for providers of payment and electronic money services.

The Computer & Communications Industry Association (CCIA Europe) expresses grave concerns about the Committee’s plan to introduce a broad extension of liability for online fraud, which would come down to responsibility being shifted from banks to online platforms. 

Not only would this liability extension directly conflict with the Digital Services Act, which already mandates online platforms to fight fraud, it is also unjustified and disproportionate. No evidence has ever been presented that creating this new liability would lead to improvements. On the contrary, it creates more confusion and is yet another example of last-minute regulatory overreach.

In fact, it is a blatant attempt by large incumbent banks to escape the responsibility they have towards their own customers by shifting it to innovative players, who are already subject to strict rules and actively combat online fraud.

CCIA regrets the overall lack of improvements to the European Commission’s initial proposal, as well as ECON’s low level of ambition on such an important legislative file. 

Furthermore, online platforms would be far from the only ones affected by this PSR text. Providers of small and innovative e-money balances – used to order a ride, take out a subscription, or make in-app purchases for instance – would also be subject to excessive new rules. 

CCIA Europe calls on Parliament to improve its position ahead of the plenary vote and deliver a framework that truly serves consumers and the wider digital economy. 

The following can be attributed to CCIA Europe’s Senior Policy Manager, Boniface de Champris:

“Today’s vote unfortunately confirms the ECON Committee’s decision to help big banks escape their own responsibility when consumers are defrauded, while using the very payment methods that banks specifically charge them for. Instead, banks want to pass the buck and abandon their responsibility, dumping it on the very innovative players who already lead the fight against online fraud.” 

“The Parliament Committee’s lack of willingness to engage with relevant stakeholders, other than some big banks, is regrettable and explains this inadequate outcome.”