Security and trust at the center of the customer relationship
A rigorous framework regulating new payment industry players
Throughout the debates on PSD2, the banking industry has vigorously argued that the same rules on security, responsibility and transparency be applied to TPPs and credit institutions alike in order to maintain the level of customer trust and to protect access to bank details. Therefore, in connection with continuous dialogue with European bodies and working together with European organisations, the banking industry proposes the following measures:
- Special identifiers for TPPs service providers different from those that customers use in their relationships with their banks,
- Mandates given by customers to a TPP service provider and relayed to the bank for acceptance,
- Direct triggering of TPPs’ liability where fraud or a defective transaction is attributable their actions.
After the adoption of a compromise agreement by the European Union Council in December 2014, the banking profession continues to underline the importance of security principles and a fair responsibility framework for all players.
Major adjustments for the cards system
The banking industry takes note of the agreement of 17 December 2014 on the Regulation providing a framework for interchange fees. It establishes caps on the fees charged on card payment transactions.
France already has interchange fees that are among the lowest in Europe. Today’s level of French interchange fees complies with the limits set out by the Regulation. However, the banking profession remains vigilant regarding the complexity of the Regulation implementing terms.
Furthermore, the Regulation requires overly cumbersome adaptations. The entire French fleet of issued cards is going to have to be overhauled and the type of card – either debit or credit – must be defined.
Bank cards are the most frequently used payment instruments in France. Their ease of use relies on an interbank system that allows the universality of payments in complete security, irrespective of the customer’s or the merchant’s bank.
A comprehensive analysis of the cash cycle
The issue of the new €10 banknote in September 2014 necessitated – after the issue of the €5 note in 2013 and prior to the issue of the €20 note in 2015 – the upgrading of ATMs to detect the security features of the new euro banknotes.
This important upgrade is part of the fight against counterfeiting. It is a fundamental part of a more comprehensive study to streamline the cash infrastructure, in particular the development of recycling, while at the same time maintaining a high level of security and resiliency. All French market stakeholders are taking part, joining other European banking communities.
Cybersecurity, an issue of prime importance
The security of payment instruments is a constant concern for French banks, which continually invest in the security of their systems to prevent fraud. However, security is a matter of concern for all: banks, consumers and merchants.
In 2014, in a climate of increasing cybercrime, mobilisation to the cause of cybersecurity is growing. French banks are making every effort to detect and react to attacks on information systems or payment instrument fraud as soon as possible.
In the light of the increasing fraud on credit transfer orders, the FBF and the Central Command of the Judicial Police produced a video to raise awareness among businesses of the caution required in their transactions particularly at international level.