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Warning: European Central Bank issues draft recommendations to increase internet payment security. I

The European Central Bank (ECB) has issued for public consultation new standards to increase the security of internet payments in the European Union.

The guidelines, called recommendations, include key considerations and best practices applicable to all payment service providers (PSPs), as defined in the Payment Services Directive, that provide internet payment services, such as:

  • the execution of card payments on the internet, including virtual card payments, as well as the registration of card payment data for use in wallet solutions
  • the execution of credit transfers on the internet, or direct debit electronic mandates initiated in relation to the payer's account, where the payer authorises its PSP over the internet using web-based technology. Owing to the specific nature of card payments, a number of the recommendations are addressed to PSPs offering acquiring and/or issuing services, as well as to governance authorities of card payment schemes.

One of proposals included in the ECB's recommendations is the introduction of a "liability shift" under the Payment Services Directive, under which retailers would accept liability for a fraudulent transaction if the payment provider can show that a payment was properly authorised.

All interested parties are invited to comment on the draft "Recommendations for the security of internet payments" by 20 June 2012.


The "liability shift" is a major change. Retailers need to examine the implications, it could radically change the profitability of your business. You may need to lobby the ECB.

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