Consultation period on PSD2 closes
Today marks a pivotal moment in banks’ and payment providers’ PSD2 preparations as the European Banking Authority (EBA) closes its consultation period on fraud reporting responsibilities.
Increased anti-fraud mechanisms under PSD2 mean that banks and payment providers will need to ensure that high-level fraud reporting is undertaken. The new rules will mean that firms will be judged on their ability to control payment fraud and poor performers will be required to implement stronger customer verification measures.
Firms within the payments sector will be required to be PSD2 compliant by 13 January 2018. The EU-driven regulation, which will apply to approximately 95% of card payments made in Europe, is envisaged to improve the security of transactions as well as saving consumers an estimated €700 million per year in surcharge-related costs.
Nigel Edwards, Senior Vice President Insurance & Head of UK at EXL Service, an operations management and analytics company, said: “the new Open Banking regulations offer many benefits to consumers – better choice and lower costs are just some of things we can expect to see as the rules come into force.”
He added, “2018 promises to be a year full of challenges for the financial sector as further regulation in the form of GDPR and MIFDii pose substantial hurdles from an organisational and IT infrastructure perspective. With increasing clarity being given on what is required of firms in the face of these new rules, it is up to leaders in their respective industries to embrace these changes as opportunities to become more competitive digital players”.