The UK Payments Council, the cohort of financial institutions responsible for overseeing payment services in Britain, has requested that the European Central Bank (ECB) amend recent recommendations for new standards of Internet payment security.
The Payments Council requested a focus on information-sharing practices that could reduce risks in the current payment process, repots Out-Law.com. The Council suggested making it mandatory for all payments service providers to exchange information about encountered security issues with each other.
In response to the ECB standards, The UK Payments Council commented, “We think that the suggested requirements for third-party providers, governance authorities, and payment service providers to inform each other of major security incidents should be a ‘Key Consideration’ rather than a best practice.”
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Integrating communication on major incidents into new standards will help improve responsive techniques as well as preventing the problems from reoccurring.
If such security problems were to arise, it has also been suggested that all of the financial institutions in the UK, such as Lloyds TSB, RBS and HSBC, should not only coordinate a response but they should also split responsibility amongst services.
The UK Payments Council recommended it should be, “mandatory for all parties to coordinate in responding to security incidents, dividing responsibilities between access service, payment service providers and payment account access services,” reports Out-Law.com.
The Council has said that it supports the ECB recommendations, however addressing that there are many potential impacts on merchants and consumers that are both beneficial and risky. They have expressed that regulation and framework is integral for the Internet payment services industry to avoid inherent risk. The Council is aware that legalities and regulation will vary amongst varied services.
The Council stated, “The legal relationship of the parties involved will vary by service, however, clarity as to by and to whom the services are provided is vital to ensure effective regulation.”
The UK Payments Council and ECB have also acknowledged that as the payments industry is still evolving, it will likely to be necessary to revisit recommendations in the future. As the market further matures and develops, more analysis will be required to better improve and understand new payment services.
To read the full article at Out-Law.com click here.
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