EU member states and the European Parliament have reached an agreement on new legislation requiring banks and payment providers to reimburse customers in cases of online fraud—unless they have adequate fraud-prevention measures in place.
Under the new rules, providers must be able to flag and freeze suspicious transactions, while major online platforms will be required to remove fraudulent ads or face liability for consumer losses.
The framework also mandates greater transparency on payment fees, guarantees access to human customer support rather than chatbots, and improves information-sharing between payment providers and banks.
The regulation will now move to formal approval before coming into force.
