Title: Allocating liability in the event of fraudulent use of electronic payment instruments and the Belgian mobile payment instrument PingPing

Authors: Reinhard Steennot

Addresses: Financial Law Institute, Ghent University, Universiteitstraat 4, 9000 Ghent, Belgium

Abstract: With unauthorised (fraudulent) payment transactions, the question arises as to whether the payment service user or the payment service provider must bear the financial consequences. This article focuses on the Payment Services Directive, which determines who is liable in the event of an unauthorised payment transaction. First, there is a discussion of the allocation of liability with the use of a |traditional| electronic payment instrument, such as a debit card or a credit card. In this part of the paper, specific attention is paid to the concept of gross negligence and the problems of the burden of proof. In the second part of the article, there is a discussion of the applicability of these rules on the allocation of liability to the new Belgian PingPing payment system.

Keywords: electronic payment instruments; PingPing; fraud; mobile payments; European Union; EU; European Commission; payment services; EC Directives; personal identification number; PIN; credit cards; electronic money; e-money; Belgium; fraudulent transactions; unauthorised transactions; payment service providers; PSPs; electronic payments; e-payments; debit cards; gross negligence; burden of proof; Belgacom; Proton; private law; mobile commerce; m-commerce; e-commerce; electronic commerce; pervasive computing; contracting; contracts; liability allocation; legal aspects.

DOI: 10.1504/IJPL.2011.039365

International Journal of Private Law, 2011 Vol.4 No.2, pp.274 - 289

Published online: 31 Mar 2011 *

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