ID 115. Payment transactions
(Internal reference 111)
Notification of unauthorised or incorrectly executed payment card transactions
At first sight, the period of 13 months granted to the cardholder to notify his service provider seems at odds with the notion of 'without undue delay' referred to in Articles 56(1)(b) and 58. Moreover, allowing the cardholder to dispute a transaction within a timeframe up to 13 months after the transaction would be unworkable from a scheme management perspective and would require significant systems changes. We understand that this 13 months' period was meant to address the situation of providers sending out yearly statements. In order to avoid any abuse of such provision, we would invite the Commission services to clarify the concept of 'without undue delay'. In this respect, it should be confirmed that a payment service provider may legitimately assume that a cardholder has become aware of an unauthorised transaction as soon as he/she receives his/her statement and, accordingly, has an obligation to notify the unauthorised use without undue delay upon such receipt. In case of monthly statements, the notification should thus occur well before the 13 months' deadline, e.g. within one month of receiving the statement.
The interpretation of 'without undue delay' will depend on the specific circumstances and has to be examined on a case-by-case basis. Existing national and/or case law could be taken into account.
The two conditions are cumulative: the payer must notify without undue delay on becoming aware of the unauthorised transactions and, in any case, within a 13 month period.
The interpretation that the payer should only have one month after the reception of his account's statement is not line with the Directive.