Unauthorised payment transaction
A payment the payer did not consent to; in the EU and UK the payer's provider must generally refund it promptly.
In the EU under PSD2 and in the UK under the Payment Services Regulations, a payment transaction is authorised only if the payer has given consent in the agreed form, and one made without that consent is unauthorised. The payer's provider must generally refund an unauthorised transaction promptly once notified, unless it has reasonable grounds to suspect fraud, and the payer bears limited or no loss except where they acted fraudulently or with intent or gross negligence. For agents, the key question is whether a payment made within, or outside, a mandate counts as consented to.
Agent Minute explains this term on 13 October 2026.
Related terms
Gross negligenceA serious failure of care by a payer that can shift losses from unauthorised payments onto them.MandateA checkable statement of what an agent may do for a principal: which action, how much, with whom and until when.Strong customer authenticationAuthentication using two or more independent elements from knowledge, possession and inherence.Unauthorized electronic fund transferUnder US Regulation E, a transfer started by someone without actual authority, from which the consumer gets no benefit.