EBA Q&A 2019_5043 — Q&A — Direct debts fraud reporting [Final Q&A]

Direct debts fraud reporting

Question

In relation to the direct debits fraud, please clarify the reporting criteria for direct debit fraud.

Background

According to GL 6.2 of the EBA Guidelines on fraud reporting under PSD2 addressed to payment services providers (PSPs), PSPs “should report all fraudulent payment transactions from the time fraud has been detected, such as through a customer complaint or other means, regardless of whether or not the case related to the fraudulent payment transaction has been closed by the time the data are reported.”

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Answer

In accordance with Guidelines 2.11 and 7.10 of the EBA Guidelines on fraud reporting under PSD2 (EBA/GL/2018/05) as amended by the EBA Guidelines EBA/GL/2020/01, the payee’s payment service provider (PSP) should report payment transactions and fraudulent payment transactions executed using direct debits in accordance with the Data Breakdown B in Annex 2 of the Guidelines.

In line with Guideline 6.2, PSPs “should report all fraudulent payment transactions from the time fraud has been detected”. In the context of direct debits, as clarified in paragraph 20 of section 3.2 of the EBA Final Report on the Guidelines on fraud reporting, refunds under eight weeks should not be automatically reported, as they do not always indicate fraud cases; such transactions should be reported only if they were subject to fraud and the reporting PSP was aware that this was the case, without implying any legal obligation to ask the payment service user whether this was the case.

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Source: EBA original document