FRANCE Law and Practice Contributed by: Hubert de Vauplane and Hugo Bordet, Morgan Lewis & Bockius LLP
Regarding the loss or theft of a payment instru - ment, Article L. 133-19 of the French Monetary and Financial Code sets out the respective responsibilities of the payer and the payment service provider. If the loss is attributable to the payer, the payer bears full responsibility. How - ever, if the loss is reported in a timely manner, the payer’s liability is limited to EUR50 for transac - tions executed before the report. The payment service provider assumes full responsibility if the loss is not attributable to the payer.
In the case of an erroneous beneficiary desig - nation by the payer, the payment service pro - vider is not required to immediately refund the payer. However, the provider is obligated to make reasonable efforts to recover the funds. Lastly, if the payer disputes a payment, the pay - ment service provider is required, under Article L. 133-23 of the French Monetary and Financial Code, to prove that the payment transaction was authenticated, accurately recorded, entered in the accounts, and not affected by a technical breakdown or some other deficiency of the ser - vice provided by the payment service provider.
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