Your card, rights under the Payment Services Directive

The following are some of the terms and conditions that a framework contract under the Payments Services Directive (PSD) is to cover vis-à-vis safeguards and corrective measures.

There is an over-arching protection level applicable to payers - a payment transaction can only be considered to be authorised if the payer has given his consent to execute the transaction. The way such consent is to be given has to be agreed between the payer and payment provider (such as a bank). The payer may withdraw the consent, but only in specific limited circumstances.

It is up to the bank to prove how the transaction was processed. If a payment user denies having authorised an executed payment transaction, the use of a payment instrument recorded by the bank is not sufficient to prove the payer authorised the transaction or that the payer acted fraudulently or negligently.

Regarding safeguards and corrective measures, the PSD specifies that the terms and conditions in respect of a payment service should contain an outline of:

1. The description of steps the payment service user is to take in order to safeguard a payment instrument (such as your debit, credit card and electronic key) and how to notify the payment service provider (your bank) if you become aware of its loss, theft, misappropriation or unauthorised use. Therefore it is wise to be aware of the specific telephone number to call in case you need to notify the bank about any instance mentioned above - whether you are in Malta or abroad. Customer service centres operated by banks may also help in this regard;

2. The conditions under which the bank reserves the right to block a payment instrument - typically for objectively justified reasons related to the security of the payment instrument or suspicion of unauthorised or fraudulent use of the payment instrument;

3. The liability of the consumer. For example, the consumer may be required to bear the losses relating to any unauthorised payment transactions, up to a maximum of €150, resulting from the use of a lost/stolen payment instrument, or if the payer has failed to keep the personalised security features safe, or from the misappropriation of a payment instrument. The payer shall not bear any financial consequences resulting from the use of the lost, stolen or misappropriated payment instrument after notification to his payment provider.

On the other hand, the payer would not be entitled to any refund for losses relating to any unauthorised payment transaction if he incurred such losses by acting fraudulently or by failing to fulfil his obligations with intent or gross negligence.

For more information contact the Malta Financial Services Authority's Consumer Complaints Unit on Freephone 8007 4924 or visit http://mymoneybox.mfsa.com.mt .