BRUSSELS, Nov 27, 2025 – The European Union has reached a major breakthrough on new regulations designed to combat online fraud, protect consumers from hidden fees, and strengthen data privacy requirements for financial transactions. EU member states and the European Parliament finalized the agreement on Thursday, marking a significant step toward improving digital payment safety across the bloc.

New Liability Rules for Banks and Payment Service Providers

Under the new framework, banks and payment service providers (PSPs) will carry greater responsibility for shielding customers from financial fraud. Providers will be required to:

• Implement effective fraud-detection and prevention mechanisms
• Freeze suspicious transactions before funds leave a customer’s account
• Reimburse customers if the provider failed to put proper protections in place

This shift aims to ensure that institutions—not consumers—bear the financial risk when fraud-prevention systems fall short.

Online Platforms to Be Held Accountable for Fraudulent Ads

In a major update, the rules also place obligations on online platforms, including marketplaces and social media sites, to swiftly remove fraudulent advertisements.
If a platform fails to take down scam ads, it may be held liable for the costs banks incur while reimbursing victims.

This adds a new layer of accountability and seeks to curb the rise in scam campaigns spread through digital advertising.

More Transparency and Consumer Rights in Payments

The legislation also introduces measures to improve the customer experience and ensure fair treatment, including:

• Clearer information about payment fees and charges
• Guaranteed access to cash, especially in rural or underserved regions
• Improved data-sharing processes between banks and payment services
• Mandatory access to human customer support, preventing banks from funneling all service requests solely through automated chatbots

These changes are expected to strengthen consumer confidence in digital payments and address long-standing complaints about fee transparency and customer service availability.

Next Steps Before the Rules Take Effect

Although the agreement marks a major milestone, the new regulations must still be formally adopted by both the European Parliament and EU member states before they can be implemented across the bloc.