Dáil Éireann Debate, Thursday - 8 September 2022
314. Deputy Carol Nolan asked the Minister for Finance if he will address concerns that small businesses are being penalised for fraudulent activity which they had no knowledge of or responsibility for, with reference to a company (details supplied); and if he will make a statement on the matter. [41939/22]
Amharc ar fhreagra315. Deputy Carol Nolan asked the Minister for Finance the steps that he will take to ensure that small businesses are protected from fraudulent activity (details supplied); and if he will make a statement on the matter. [41940/22]
Amharc ar fhreagraI propose to take Questions Nos. 314 and 315 together.
The issues referred to in the details supplied relate to a disputed charge back transaction between a small enterprise here and a financial service provider.
I am informed by the Central Bank of Ireland that the financial services firm in question is authorised by the Federal Financial Supervisory Authority in Germany (BAFIN) as a payment institution and passports its services into Ireland on a freedom of establishment basis under the revised Payment Services Directive (PSD2). For payment institutions passporting into Ireland on a freedom of establishment basis, the Central Bank of Ireland is the competent authority responsible for the supervision of the conduct requirements set out in Parts 3 and 4 of the Payment Services Regulations which transposes PSD2 into Irish law.
The Central Bank is not in a position to comment on specific cases, however Part 3 of the Payment Services Regulations which transposes PSD2 into Irish law sets out information requirements which payment service providers are subject to including specific information that has to be provided in advance of a payment service being provided.
Regulation 75 of the Payment Services Regulation states that in good time before a payment service user is bound by a framework contract, the payment service provider is required to provide the payment service user on paper or on another durable medium with the information that is required to be contained in a framework contract, such as information relating to the use of the payment service, charges, interest and exchange rates and safeguards and corrective measures. This information is required to be in easily understandable words and in a clear and comprehensible form.
Also under Regulation 65, where in proceedings in relation to these Regulations a dispute arises as to whether or not the information requirements set out in Part 3 of the Payment Services Regulations have been complied with, the burden of proof rests with the payment service provider.
Should an individual not be satisfied with a payment service that is provided to them, they are advised to follow the regulated firm’s compliant handling process.
If they are not satisfied with the response from the regulated entity to that complaint, the person may then submit the matter to the statutory and independent Financial Services and Pensions Ombudsman.
