The National Bank explains the new rule for suspending high-risk transactions

According to the statement of the National Bank of Georgia, the changes made to the rule on strong customer authentication and the protection of consumer rights when services are provided by financial organizations are aimed at protecting the user from high-risk transactions and possible financial fraud. According to the agency, the additional protection mechanism does not apply to regular payments and transfers. 1TV+3

The additional protection mechanism will be activated only if the payment service provider, including a commercial bank, microbank, registered payment service provider, or microfinance organization, identifies four circumstances simultaneously: the content of the payment operation is related to high-risk fraud profile activity; unusual features of the user's spending and behavior are identified; the amount of the payment operation exceeds 500 GEL; the user's age exceeds 60 years. 1TV+3

In the above-mentioned case, the payment service provider is obliged to suspend the electronic payment operation for 48 hours and contact the user to provide information about the risks or possible fraud. The user will have the opportunity to make a final decision within 48 hours, and if they wish to execute the operation, they must confirm this to the provider. 1TV+3

According to the National Bank's information, the change was developed taking into account international practice, and a similar mechanism is in effect in the USA, Canada, Brazil, the United Kingdom, and European Union countries. 1TV+3