Payment Radar
European Interoperability Hub Launches for Instant Payments, But Merchants Lose Chargeback Protection
European payments groups (Bancomat, Bizum, Wero, Sibs-MB WAY, Vipps MobilePay) have formed the 'European Network for Payments' to operate a common interoperability hub.
Payment RadarOriginal source: Finextra · linked publisher media; native reuse rights require confirmation 
What changed
Five major European payment networks—Bancomat, Bizum, Wero, Sibs-MB WAY, and Vipps MobilePay—have launched the European Network for Payments, a shared interoperability hub. This hub connects existing national payment services through a common technical layer built on European standards, starting with cross-border peer-to-peer transfers before expanding to e-commerce and point-of-sale transactions. Merchants can now accept instant account-to-account payments from consumers across these networks. However, these instant payments are final and irreversible, stripping away the chargeback protection and consumer guarantees that traditional card schemes like Visa and Mastercard provide. This shift removes a critical safety net for businesses, exposing them to higher fraud risk and potential financial loss from undelivered goods or services.
Why a business should care
The elimination of chargeback rights fundamentally alters the risk profile for merchants. Without the ability to reverse transactions, businesses face increased exposure to fraud, non-delivery disputes, and reputational damage. While the hub promises seamless cross-border payments, the trade-off is a loss of consumer protection mechanisms that have long shielded merchants from certain types of disputes. This change demands a reevaluation of payment acceptance strategies, particularly for businesses operating in e-commerce and point-of-sale environments where fraud risk is already elevated.
Who it affects
The impact is direct for merchants across Europe accepting cross-border, e-commerce, and point-of-sale payments. Businesses relying on instant account-to-account transactions will need to adapt their fraud prevention and dispute resolution processes. The rollout begins with peer-to-peer transfers, but the expansion to e-commerce and point-of-sale will broaden the affected audience.
What to consider doing
Pull your current payment processor’s terms of service for instant account-to-account payments and verify whether chargeback protection is explicitly excluded. If the terms confirm irreversible transactions, implement stricter fraud screening tools or adjust pricing to account for higher dispute risks.
Uncertainty and risks
The full scope of fraud exposure remains unclear as the hub expands beyond peer-to-peer transfers. Merchants should watch for official guidance on dispute resolution mechanisms and monitor whether new consumer protection frameworks emerge to offset the loss of chargeback rights. If no such frameworks are introduced, the risk of financial loss from undelivered goods or services will remain elevated.
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