Community

I think Finextra has jumped the gun on this one.

To quote the FCA letter, it states 

“We *could* also: 

• Remove the £100 contactless limit...”

https://www.fca.org.uk/publication/correspondence/fca-letter-new-approach-support-growth.pdf

"Citing people briefed on the plan, The FT reports that the regulataor [sic] was forced to push down reimbursement levels amid fears that the new rules could put many smaller fintechs out of business."

Let them go.  if they can't keep customers safe, or reimburse them when they fail, they shouldn't be writing the business. Leave it to the bigger fish (or better firms). Or lower their own transaction limits.

A small vocal minority of lobbyists should not be dictating regualtory policy designed to keep customers safe (and incentivise FIs to do more to prevent economic crime for the benefit of society at large) for the sake of a few niche players.

Well done David Geale and the PSR for sticking to the plan.

The need is clear and evidence based. Only when the right incentives are in place will we see PSPs change their behavior and fully assume their duty to customers and society by being more proactive in their efforts to reduce economic crime. 

The cost of fraud to victims, the national and global economy is enormous - and payment service providers are best placed to deploy preventative measures.

If firms can't afford to protect their customers and the associated liability for the business they write, then they either need a better business model and/or processes, or should leave the market to others that do.