Pearse Doherty (Donegal, Sinn Fein)
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234. To ask the Minister for Finance further to Parliamentary Question No. 110 of 22 February 2023, if the introduction of provisions to require reimbursement from payment service providers to victims of authorised push payment fraud domestically would contravene the revised Payment Service Directive (2015/2366/EU)(PSD2). [10223/23]

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, particularly authorised push payment fraud where fraudsters use social engineering scams (i.e. phishing) in combination with more sophisticated online attacks. Transparency requirements and rules on single payment transactions and framework contracts are also being reviewed in light of market developments including 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).