Pearse Doherty (Donegal, Sinn Fein)
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110. To ask the Minister for Finance further to Parliamentary Question No. 204 of 16 February 2023, if a requirement for payment service providers to compensate customers where authorised push-payment fraud occurs would require new legislation, to, for example, give the Central Bank powers to require compensation; if such legislation would be possible under PSD2; and if he will make a statement on the matter. [9241/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The revised Payment Service Directive (2015/2366/EU) (PSD2) is a maximum harmonisation directive and insofar as the Directive contains harmonised provisions, Member States shall not maintain or introduce provisions other than those laid down in this Directive.

PSD2 provides the customer with recourse for unauthorised transactions. However, it does not directly provide recourse for the customer in the case of authorised push payment fraud.

The European Commission are currently undertaking a review of PSD2, which is expected to cover a wide variety of areas related to the Directive. As part of the review fraud prevention mechanisms, strong customer authentication rules and their impact on fraud rates are being assessed. Transparency requirements and rules on single payment transactions and framework contracts are also being reviewed in light of market developments (e.g. the rules related to rights and obligations, such as the right of refunds).

Officials from my Department have been engaging with the Commission’s review on areas of Irish interest. The outcome of the review will enable the Commission to decide whether EU coordinated action and/or policy measures are warranted. It is likely that when the review is complete the Commission will bring forward a proposal for a new Directive (PSD3).