Brussels (Brussels Morning Newspaper) – European Union member states and the European Parliament reached an agreement on new regulations requiring banks and payment service providers to enhance customer protection against online fraud, hidden fees, and data leaks, according to the Parliament on Thursday.
Negotiators from the parliament and European Council have finalised an agreement on the Payment Services Regulation (PSR) and the Third Payment Services Directive (PSD3). These measures aim to standardise payment services throughout the European Union and enhance safeguards against fraud.
Great news for European consumers as @Europarl_EN and @EUCouncil struck a deal on the Payment Services Regulation and the Third Payment Services Directive.
— Roberta Metsola (@EP_President) November 27, 2025
New rules that will strengthen protection against fraud and make fees more transparent.
Thanks to @EP_Economics Chair…
How will new EU rules strengthen fraud prevention measures?
As reported, the goal of the regulation is to improve fraud prevention throughout the EU and standardise payment services. The new 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 prevention measures.
It covers payment services offered by banks, post offices, and other payment institutions, as well as technical service providers that assist with payment services and, occasionally, online platforms and providers of electronic communications.
Online platforms are also required by the regulations to remove fraudulent advertisements; otherwise, they will be responsible for the expenses incurred by banks to reimburse their customers for related fraud.
The law should ensure better access to cash in rural areas, provide greater clarity on payment fees, and facilitate payment providers’ access to bank information. Additionally, it would compel banks to guarantee access to human customer service rather than relying solely on chatbots.
By addressing authorisation and supervisory powers, the directive aims to guarantee fair competition among payment service providers (PSPs) and enhance cash access, especially in remote areas.
How has the EU Parliament strived to better payment services in europe in recent years?
In relation to payment services, the European Parliament has passed a number of resolutions and measures, most notably PSD3 and the Payment Services Regulation (PSR). The PSD3 and PSR proposals were amended by the Parliament in April 2024, with a focus on fair competition among payment service providers (PSPs) and robust customer protection against fraud and data breaches.
Strong fraud prevention measures, such as required payee name verification and strong customer authentication, are required by the Parliament, and if prevention fails, PSPs will be held accountable for customer losses resulting from fraud.
