Bank of France fraud reimbursement and gross negligence doctrine, Digi Mart USA News (France): Strengthened strong authentication has reduced online card payment fraud, but scams have shifted toward direct manipulation of victims. According to data from the ACPR, 38% of the amount of contested transactions remained borne by customers in 2024.
A ruling by the Court of Justice of the European Union dated October 15, 2026 recalls that a bank cannot refuse immediate refunds of an unauthorized transaction solely on the grounds of a customer’s gross negligence. Fraud once relied mainly on stealing card numbers to make online purchases.
Since 2021, strong authentication has been generalized for online card payments, and the fraud rate on this type of payment fell by nearly 40%.
Fraudsters have adapted by manipulating victims into validating or carrying out fraudulent debits themselves. This type of fraud has surged in recent years, with amounts stolen nearly doubling since 2021.
These manipulation-based frauds complicate the assessment of victims’ liability and their right to be reimbursed.
In May 2023, the Bank of France published recommendations to clarify reimbursement rights under European payment rules. For transactions with strong authentication, banks were asked to look for elements justifying authorization or demonstrating gross negligence by the user; if such elements existed, the victim could lose the right to immediate refund.
According to ACPR figures for 2024, the reimbursement rate for unauthorized transactions was 62% by amount, a rate described as declining over the previous two years. MoneyVox asked the Bank of France for the 2025 reimbursement rate but did not receive it.
The CJEU, asked by a Polish court to interpret the directive, stated that customer gross negligence does not exempt a payment service provider from immediate reimbursement of an unauthorized payment. The bank must refund first and may then seek recovery from the customer if it can prove intentional or grossly negligent breach of obligations.
Asked whether it would update its guidance following the ruling, the Bank of France told MoneyVox it did not wish to comment on the CJEU decision at this stage.
