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Know Your…Core Banking Logic

Balazs Szebelledy

Article 73 of PSD2 Directive says that if the payer’s payment service provider has NO reasonable grounds for suspecting fraud, then in the case of an unauthorised payment transaction, the payer’s payment service provider shall refund the payer the amount of the unauthorised payment transaction immediately, and in any event no later than by the end of the following business day, after noting or being notified of the transaction.

There are - at least - two challenges in calculating the refunded amount

  1. Have an automatized process not only for the judgement but also for the calculation itself
  2. And what is worse: Know your core banking system, especially its calculation logic in details to be able to define what was calculated and why. Otherwise you won’t be able to restore the debited payment account to the state in which it would have been had the unauthorised payment transaction not taken place.

If you had a detailed and constantly updated documentation then you are in the 1% who won’t need to worry. If you are in the remaining 99% then you need somebody who has experience in solving this issue.

In case of further inquiry just drop me a private message! hashtag

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(source: LinkedIn)