Liability in Case of Fraudulent Use of a Payment Instrument. Putting the Payment Services Directive Into Perspective

This article (pdf) provides an overview of the main provisions of the Payment Services Directive (PSD directive) dealing with the authorisation and the execution of payment transactions, and also the liabilities of payment service providers with respect to the payment service user. The liability of the payment service provider can be divided in two main categories: liability for losses from unauthorised transactions, and the liability for non-execution or defective execution of a payment transaction. The present overview focuses on the first category and discusses the exemption from liability in case of gross negligence and fraudulent use of the payment service user.