EU to demand banks reimburse fraud victims

The European Union (EU) is to require payment service providers (PSPs) to refund customers who fall victim to payments fraud - including when the PSP has failed to undertake proper due diligence on their customer's payee, ensuring matches on name and unique identifier - under a deal on reform of the bloc's 10-year-old payment services legislation.

By Sara Lewis, in Brussels

The European Union (EU) is to require payment service providers (PSPs) to refund customers who fall victim to payments fraud - including when the PSP has failed to undertake proper due diligence on their customer's payee, ensuring matches on name and unique identifier - under a deal on reform of the bloc's 10-year-old payment services legislation. [1]