EU countries approve stronger protections for online payments

On June 18, 2025, European Union countries reached an agreement to implement new rules aimed at improving payment services within the bloc, focusing on enhancing consumer protection and reducing fraud. The rules were crafted to address growing concerns about security in online payments, particularly as digital transactions become more prevalent. Polish Finance Minister Andrzej Domanski expressed the necessity of creating a safe, transparent environment while simultaneously fostering innovation in the financial sector. The agreed measures will require payment providers to actively share information regarding fraud incidents and establish systems for verifying international banking numbers (IBAN) against account names prior to money transfers. This is particularly relevant in combating sophisticated fraud tactics such as “spoofing fraud,” where criminals impersonate legitimate service providers to mislead consumers into making improper transactions. According to Heiner Herkenhoff, head of the German banking association (BdB), collective action among banks, telecom providers, and internet platforms is vital for effectively tackling fraud. Germany's banking sector, however, has expressed concerns over proposals that would place sole liability on banks for losses incurred by customers due to fraud. Herkenhoff warned that this would not adequately resolve the issue; instead, it would shift financial responsibilities and create more opportunities for fraudsters. This debate reflects the tension between the need for accountability and protecting consumers in an evolving digital payment landscape. In addition to combating fraud, the new regulations aim to improve transparency around fees and exchange rates for ATM transactions and payment card schemes. This initiative is designed to empower consumers and businesses, enabling them to make informed choices regarding payment transactions. The rules now need final approval from the European Parliament.