PSD3 and PSR: How Europe’s New Payment Rules Address Fraud
Summary
A Fusion Fireside episode explores how PSD3 and the PSR respond to evolving payment fraud, reshape liability, and strengthen prevention, while raising questions about future regulation of AI-driven payments.
Key points
- PSD2 focused on account takeover and strong customer authentication; PSD3 broadens fraud-prevention requirements to address authorized push payment scams.
- The proposed liability approach aims to better align responsibility with fraud’s origin, including potential liability for social media and telecom providers.
- The discussion identifies AI-driven payments as a future challenge, including how to authenticate agents, detect fraud, and assign liability if an agent is manipulated.
- The article says PSD3 does not address AI-agent risks, which may require attention in a future regulatory cycle.
- The European Banking Authority is expected to issue 15–20 additional technical standards after PSD3 is finalized.
- The discussion suggests Europe’s approach could influence global fraud regulation.
Article Details
- Event Type
- Interview discussing PSD3 and the Payment Services Regulation (PSR), fraud prevention, liability, and future regulatory challenges.
- Impact
- The article describes PSD3 as broadening fraud-prevention requirements beyond strong customer authentication and introducing a more nuanced liability model that may extend responsibility to social media and telecom providers. It says AI-agent authentication, fraud detection, and liability are not addressed by PSD3 and may require future regulation. The European Banking Authority is expected to issue 15–20 additional technical standards.