Single Rulebook Q&A

Question ID: 2018_4045
Legal act : Directive 2015/2366/EU (PSD2)
Topic : Strong customer authentication and common and secure communication (incl. access)
Article: 98
Paragraph:
Subparagraph:
COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 – RTS on strong customer authentication and secure communication
Article/Paragraph : 19
Type of submitter: Other
Subject matter : Transaction Risk Analysis (TRA) exemption – Frequency of recalculation of fraud rate
Question:
Should the fraud rate, in accordance with Article 19 of the RTS, be recalculated every day using the trailing 90 days of data, or should it be recalculated once every 90 days (using the trailing 90 days of data)?
 
If the fraud rate should be recalculated once every 90 days (using the trailing 90 days of data), can the calculation periods be aligned with calendar quarters? (e.g. the fraud rate for use during Q1 2020 (01-Jan-20 to 31-Mar-20) would be based on fraud data for Q4 2019 (01-Oct-19 to 31-Dec-19).
Background on the question:

The RTS state that the fraud rate for use in the TRA exemption should be calculated on a “rolling quarterly basis (90 days)”. It is not clear if this means that the fraud rate should be recalculated every day using the trailing 90 days of data, or should be recalculated once every 90 days (using the trailing 90 days of data).

Date of submission: 28/06/2018
Published as Final Q&A: 07/06/2019
EBA answer:

Article 19(1) of the Commission Delegated Regulation (EU) 2018/389 refers to a calculation on a “rolling quarterly basis (90 days)”.

Article 20(2) of the Delegated Regulation states that payment service providers should cease applying the exemption if the “monitored fraud rate exceeds for two consecutive quarters the reference fraud rate applicable for that payment instrument or type of payment transaction in that exemption threshold range”.

Accordingly, Articles 19(1) and 20(2) of the Delegated Regulation should be read together in a systematic way, such that the calculation on a rolling quarterly basis (90 days) should be interpreted as a calculation once every calendar quarter.

 

Status: Final Q&A
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