The European Parliament announced on Thursday that it and EU member states have reached an agreement on new regulations that would compel banks and other payment service providers to better safeguard their clients from online fraud, hidden surcharges, and data breaches.
The proposed regulations would require payment service providers to freeze suspicious transactions and hold them accountable for customers’ losses if they don’t put in place suitable fraud protection measures.
Online platforms are also required by the regulations to delete false advertisements since they would be responsible for the expenses incurred by banks to refund their consumers for connected fraud.
The law should ensure improved access to cash in rural areas, provide greater transparency on payment fees, and facilitate payment providers’ access to bank information.
Additionally, it would compel banks to guarantee access to human customer service rather of relying just on chatbots.
Before the regulations take effect, they must be formally adopted by the Parliament and member states.
