European Council agrees negotiating mandate for new EU payment services rules to curb fraud and increase fee transparency

EU member states’ representatives in Coreper approved the European Council’s negotiating mandate on proposals to modernise EU payment services, setting out the Council’s position for talks with the European Parliament on a new payment services regulation and amendments to the Payment Services Directive (PSD2). The package aims to reduce payment fraud, strengthen consumer protection and fee transparency, and support innovation in payment services. The mandate supports a comprehensive anti-fraud framework to address newer scams such as spoofing, including requirements for payment service providers to share fraud-related information and to enable checks of an IBAN against the corresponding account name before funds are transferred. It also brings electronic communications service providers, including internet carriers and messaging platforms, into the fraud-prevention scope, clarifies that consumers should not be left at a disadvantage due to fraud, and stresses close alignment with EU data protection law. On transparency, ATM transactions would have to display all fees and exchange rates before execution, and additional provisions would increase visibility of payment card scheme fees and rules. For innovation, payment initiation and account information service providers would receive improved access to necessary bank account information, alongside safeguards. With the mandate agreed, the Council presidency can start negotiations with the European Parliament on a final text; once agreed by the co-legislators, the measures would be adopted as a new regulation and amendments to PSD2.