The European Council announced a provisional political agreement with the European Parliament to strengthen EU payment services legislation through a new payment services regulation and amendments to the Payment Services Directive (PSD2). The package targets payment fraud, consumer protection, transparency of fees, access to cash, and support for technological innovation in payments. The agreed framework would require payment service providers to share fraud-related information and to verify the payee’s IBAN against the corresponding account name before executing transfers, extending a check already used for euro instant payments. Payment service providers would also face liability where they fail to meet obligations on preventive tools. In addition, major online platforms and search engines would be able to advertise financial services in a member state only where the provider is regulated and authorised in that member state. On transparency, ATM operators would have to display all fees and applicable exchange rates before a transaction, and card payment service providers would need to clearly disclose merchant fees. Measures to improve access to cash include allowing retailers to offer cash withdrawals without a purchase, subject to chip-and-PIN and a maximum limit of EUR 150 or the equivalent in national currency, while merchants would also need to ensure their trading name matches what appears on customers’ bank statements. The Council and the European Parliament will continue technical work on the package ahead of final adoption by the co-legislators.
European Council 2025-11-27
European Council and European Parliament reach provisional agreement on new EU payment services rules to curb fraud and improve fee transparency
The European Council and European Parliament reached a provisional agreement to enhance EU payment services legislation, introducing a new regulation and amending the Payment Services Directive (PSD2). Key measures include mandatory fraud information sharing, IBAN verification, liability for non-compliance, and advertising restrictions for financial services. Additional provisions focus on fee transparency, improved cash access, and merchant obligations.