European industry experts have dismissed suggestions that uptake of third-party providers (TPPs) will be hampered by a lack of fraud protections compared to transactions by card.
Today, rules put in place by major card schemes such as Visa and Mastercard usually give customers the right to reclaim funds if they fall victim to fraudulent activity.
For example, an online shopper who pays for goods that never arrive can typically demand a chargeback if the transaction was made using a debit or credit card, whereas no similar protection exists for payment by bank transfer. It also means they can recover funds if the retailer goes bust.
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