Credit card fraud: banks ordered to reimburse faster


The Banque de France slaps its fist on the table: banks and other payment service providers do not reimburse customers who are victims of credit card fraud fast enough.

Repayment by banks: practices need to be improved

If you are the victim of credit card fraud, your bank is supposed to reimburse you. And this, within a maximum of one working day (with some exceptions). But in fact, this is far from the case. In October 2020, the consumer defense association UFC Que Choisir sounded the alarm: nearly a third (30%) of victims of fraud are never reimbursed by their bank!

Today, it is the Banque de France and the Prudential Control and Resolution Authority (ACPR), its branch whose missions cover consumer protection in particular, that are interested. While the institution does not publish the statistics obtained through its survey (carried out by questionnaire sent to 25 payment service providers), it nevertheless notes that, in terms of handling these complaints, the practices of institutions need to be improved.

Remote payment: the correct entry of an SMS code is not a pretext to consider the transaction as potentially fraudulent

The ACPR recalls that the legal deadline of one working day for reimbursement may not be respected only if the bank has clues suggesting that the author of the fraud is the client himself, or that he has been grossly negligent. In this case, the burden of proof is on the bank. The institution invites professionals to give more reasons for their refusal decisions.

In addition, the reimbursement must relate not only to the amount of the unauthorized transaction but also to any charges that may be applied, something that not all banks do. Moreover, and this is new, the validation of the operation by an SMS-OTP code, in the absence of a second authentication factor meeting the new reinforced security standards (strong authentication), does not allow the PSP to refuse the reimbursement request on this sole basis.