# EUR-Lex - 52013PC0266 - EN

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# 52013PC0266

**Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL On the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features /* COM/2013/0266 final - 2013/0139 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

1.1.        Grounds for and objectives
of the proposal

The continued development of the single market
in the area of financial services is of primary importance for Europe’s growth and competitiveness. However obstacles to a fully integrated internal
market for financial services remain. Recent initiatives at EU level have
sought to help the single market to develop its full
potential by ending market fragmentation and
eliminating barriers and obstacles to the movement of services, while also strengthening
citizens' confidence in their internal market and ensuring that its benefits
are passed on to consumers.

The Single Market Act
(SMA) I, adopted by the Commission in April 2011, outlined twelve levers to boost growth and strengthen citizens' confidence in
the single market. In the field of retail financial services, SMA I stated that particular regard
should be given "to the transparency of bank fees and better protection of
borrowers in the mortgage market". The Commission also announced "an
initiative concerning access to a basic payment account for all citizens at a
reasonable cost, wherever they live in the EU" in order to enable all
citizens to participate actively in the single market.

The SMA II, adopted on 3 October 2012,
identified a legislative initiative on bank accounts in the EU as one of the
twelve priority actions to generate real effects on the ground and make
citizens and businesses confident to use the single market to their advantage.[1] Its aim is to "give all EU
citizens access to a basic payment account, ensure bank account fees are
transparent and comparable, and make switching bank accounts easier".[2] Furthermore, the Commission
announced proposals in the area of transparency and comparability of bank fees and
bank account switching as part of the Commission's Work Programme for 2013.[3]

Previous initiatives in the field of retail
banking have not only improved the ability of payment service providers to
operate cross border, but have brought substantial benefits to many European consumers,
in particular through cheaper transactions, faster payments and more
transparent conditions and prices. The Payment Services Directive (2007/64/EC)
provides certain transparency obligations with respect to the fees charged by
payment service providers. This initiative has contributed to substantially shortening
the time required to execute transactions and increase the consistency of the
information provided to consumers in relation to their payment services. The
recent Regulation on the Single Euro Payment Area (SEPA) has created a coherent
framework for carrying out secure and fast payment transactions within the
Eurozone, simplifying the provision of payment services and facilitating customer
mobility.

While measures to complete the single
market for financial services should generate growth and enhance business
opportunities for providers of financial services, their impact on consumers is
also of vital importance. At present, the opacity of payment
account fees make it difficult for consumers to make informed choices. Even
where fees are comparable, the process for switching from one payment account
to another is often lengthy and complex. As a result, consumers still show a
very high degree of inertia with respect to payment accounts. A survey on
retail financial services conducted in 2012[4]
showed that a large share of consumers tends to remain attached to their
payment providers. Only 16% of the respondents who already held a financial
product had opened a new payment account in the previous five years. Further,
only 3% of the respondents declared having opened a payment account
cross-border. Consumers were dissuaded from purchasing retail financial
products cross-border by unclear information (21%), lack of clarity of the
rights available to the consumer (18%) or the process being too complicated
(15%). Consumer inertia makes it more difficult for financial service providers
to attract new clients and may make the entering of new markets less attractive,
in particular in a cross-border context. In turn, this raises prices and lowers
the quality of services provided to the consumers.

The impact of EU measures aimed at ensuring
a sound and robust framework to fully develop the benefits of the internal
market for financial services is reduced by the fact that a large portion of
the EU population is still unbanked. The World Bank estimated that about 58
million EU consumers do not have a payment account[5] and approximately 25 million of
them would like to open one. Moreover, surveys and consultations undertaken by
the Commission and complaints from consumers demonstrate that many citizens
have faced difficulties in opening a payment account due to their lack of a
permanent address in the Member State where the payment service provider is
located. This situation also affects a large number of EU consumers living in
another Member State (12.3 million people in 2010). All these factors
negatively impact upon consumers' ability to obtain payment accounts,
especially cross-border. As noted in the recently adopted package on social
investment, payment accounts are a vital tool for people to participate in the
economy and society[6].

Moreover, the fact that a large number of
consumers do not currently participate in the internal market for financial
services has negative consequences for both payment service providers and
consumers. On the one hand, providers are less incentivised to offer their
services in the Union and to enter new markets, which stifles the competitive
process and in turn leads to less favourable conditions for consumers. On the
other hand, unbanked consumers are excluded from the benefits of the internal
market. The economy is steadily moving towards an increase of cashless
transactions. This trend affects companies and consumers. It also affects public
administrations, which have realised the advantages of non-cash transactions.[7] Furthermore, the lack of access
to a payment account prevents consumers from fully benefiting from the internal
market, for example, by hindering the purchase of goods cross-border or online.

As payment accounts are the financial
services product most likely to be purchased cross-border, identifying adequate solutions to the
problems outlined above is vital. The consequences of inaction are potentially serious,
including the inhibited development of a fully-functioning internal market with
significant impacts upon payment service providers, consumers, and the wider
economy. Furthermore, the financial crisis has brought to light the importance
of effective measures to restore a high level of consumer confidence towards
financial institutions.

In light of this, and with a view to
enhancing the integration of the EU payment account market, this proposal aims
to improve the transparency and comparability of fee information relating to
payment accounts, facilitate switching between payment accounts, eliminate
discrimination based on residency with respect to payment accounts and provide
access to a payment account with basic features within the EU. It will
contribute to easier market entry, increased economies of scale and therefore
increased competition in the banking and payment industries, both within and
across Member States. Taking steps to simplify the comparison of services and
fees offered by payment services providers and facilitate the process of
switching between payment accounts will, in turn, improve prices and services
for consumers. This proposal will also guarantee access to basic payment
services to all EU consumers and prohibit discrimination based on residency
against consumers who intend to open a payment account abroad, to the benefit
of both payment service providers and consumers.

1.2.        Existing provisions in the
area of the proposal

Transparency and comparability of payment
account fees

The Payment Service Directive (2007/64/EC)
provides certain transparency obligations with respect to the fees charged by
payment service providers but it does not provide a framework to define the
manner of presentation of such information, nor does it contain any provisions
concerning the comparability of fees.

In 2010 the European Commission invited the
European Banking Industry Committee (EBIC), representing the banking industry
at EU level, to develop, through self-regulation, a framework ensuring
increased transparency on payment account fees. In May 2011 EBIC presented the
European Commission with its proposal, which proved unsatisfactory. In
particular, this self-regulatory attempt failed to establish a consistent
terminology within a reasonable time-frame.

Payment account switching

In 2008, EBIC adopted the Common Principles
for Bank Account Switching which define the process to facilitate payment
account switching within a Member State. Implementation of the Common
Principles was meant to be completed by the end of 2009. However, as of 2012,
the enforcement of these guidelines remained unsatisfactory.

In particular, not all payment services
providers have followed the principles established by the EBIC and the
application of these principles has been often patchy and not homogeneous. This
led to several difficulties for consumers trying to switch accounts. Many consumers
faced problems with the misdirection of their payment orders, which may
sometimes even lead to fines. Also, the duration of the switching process in
certain countries exceeds substantially the 15 days prescribed by the Common
Principles. Moreover, consumers are often not provided with clear information as
regards the availability of the switching mechanism and its basic features.

Access to a payment account with basic
features

On 18 July 2011 the Commission issued a
Recommendation on access to a basic payment account.[8] The Recommendation invited
Member States to put in place the measures necessary to ensure that payment
accounts with basic features are offered to consumers within 6 months of its
publication. As a follow-up, on 22 August 2012 the Commission services issued a
Report on "National Measures and practices as regards access to basic
payment accounts"[9]
to evaluate the extent to which Member States are complying with the
Recommendation and concluded that only a few Member
States appear to comply with its main principles.

In particular, to date eleven Member States have no measure in force
concerning the right to open an account, features of such an account and
associated charges. Only a few Member States appear to be close to complying
with the principles of the Recommendation. In the remaining Member States, some
rules or systems are in place or about to be put in place, although with widely
differing standards and degrees of implementation. In some countries the
measures in place do not amount to legislative initiatives but are limited to
self-regulatory actions, only impacting those banks which voluntarily chose to adhere
to the principles in question. Their effectiveness is thus limited and the
application inconsistent. In other Member States, only generic and general
provisions with respect to access are in force whilst structured measures in
this respect are still lacking.

1.3.        Consistency with the EU’s
other policies and objectives of the Union

The proposal is consistent with the
policies and objectives pursued by the Union. The
measures envisaged will foster the development of the internal market and enable all consumers in all Member States to
enjoy the full benefits deriving from it. By enhancing competition between
payment service providers and facilitating consumers’ participation in the
single market, the proposal will also increase the volume of transactions
within the Union and will contribute to the attainment of the wider objectives
of economic growth.

This proposal complements the measures
adopted by the Commission with the Payment Service Directive. The Payment
Service Directive provides harmonised rules on fee transparency, with the aim
of reducing the cost of payment systems for payment service providers. The
present proposal, on the other hand, directly targets the harmonisation of fee terminology
and presentation, and establishes quality standards for information tools to
facilitate comparison between payment accounts. Further, it provides a
procedure for the effective switching of payment accounts as well as
guaranteeing access to basic payment services.

The proposal is consistent with the Union’s policy in the fight
against money laundering and terrorism financing. Consumers will still need to
be able to satisfy identity requirements before opening an account, as required
by the Third Anti-Money Laundering Directive[10].
However, it will no longer be possible to refuse the opening of a payment
account by alleging anti-money laundering concerns based on the mere fact that
the consumer is not a resident of the Member State where he or she wants to
open an account.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

2.1.        Consultation of interested
parties

Consultation methods, main sectors
targeted and general profile of respondents

The Commission services launched a public
consultation on 20 March 2012. The objective of the consultation was to collect
stakeholders’ views on the transparency of payment
account fees, switching between payment accounts and on
access to basic payment accounts in order to assess the need for action at European Union level and
identify what measures, if any, should be taken. The European Commission
received 124 responses from stakeholders in 19 Member States and one EEA member
as well as from representative bodies at EU and international level.

Summary of responses and how they have
been taken into account

Regarding transparency of payment accounts
fees, a majority of respondents in all categories of stakeholder reported that
problems were encountered in the retail banking sector with respect to the
manner of presentation and the comparability of such fees. Unanimous support
emerged among consumers for EU level action aimed at ensuring a level playing
field in these areas. However, more diverging positions were expressed by Members States and the industry on the possible means to tackle these issues. Some Member
States supported EU action or considered this possibility, while others
considered that further measures should be conducted at national level
initially. The majority of stakeholders from the financial services industry
did not see the need for legislation at EU level and expressed the view that,
if EU action were to be pursued, it should be flexible and take account of
efforts made at national level.

With regard to switching, consumers and
representatives of civil society argued that banks do not always offer
switching services and even where such services are provided, they do not fully
comply with the provisions of the Common Principles. The financial services
industry, on the other hand, considered that most providers offer a switching
service in line with the Common Principles. The views of public authorities
tended to fall between these. There were mixed views as to whether the Common
Principles should be made compulsory. Several Member States as well as the
financial services industry believed that the Common Principles should remain
voluntary. Respondents from other Member States were more open to making the
Common Principles compulsory, as this would guarantee a more effective
enforcement of the provisions. Consumers and representatives of civil society
strongly believed that the Common Principles should be made binding.
Stakeholders were also split as to whether any initiative should cover
cross-border switching. Consumers mostly appeared in favour of cross-border
switching, while most respondents from the industry opposed this option. As for
Member States, while several respondents were not supportive of a cross-border
dimension, others took the view that this option would favour the achievement
of the single market.

With respect to access, the consultation provided mixed results. On the
one hand, the financial services industry, as well as some Member States,
argued that there were no major obstacles to consumers accessing a basic
account as the financial services industry either adheres to a national provision
on access or the EU Recommendation. They therefore concluded that no action
should be taken in this area. The financial services industry further
emphasised that if any measure were to be taken, it should be at national level
to accommodate the different legal and regulatory landscapes across the EU. On
the other hand, consumers, representatives of civil society and some other Member
States took the view that the current situation is unsatisfactory and that
major difficulties exist in accessing basic account services. They would,
therefore, strongly support an initiative that ensures access to a basic
account. Consequently, they argued in favour of legislative measures at EU
level, albeit with some flexibility for national circumstances.

Commission services also met with Member States, payment service providers, industry representatives, and consumer
representatives, throughout the process.

2.2.        Impact Assessment

In line with its "Better
Regulation" policy, the Commission prepared an impact assessment of policy
alternatives. Policy options related to the scope of the new provisions, the
level of standardisation, the setting up and functioning of measures on
transparency and comparability of fees, switching between payment accounts, improved
access to basic payment services and how to ensure their effective application
for consumers.

A number of studies and surveys supported
the impact assessment. This included: the Eurobarometer Survey; a study on
"Quantification of economic impacts of EU action to improve fee
transparency, comparability and mobility in the internal market for bank
personal current accounts"; a study on "Bank fees transparency and
comparability and bank mobility"; and a survey of consumers' switching experiences
with reference to the Common Principles on Bank Account Switching.

The impact assessment identified a series
of problems concerning the transparency and comparability of payment account
fees. Fee information provided to consumers is overly complex. Diversity in pricing
models adds to the complexity of choosing an appropriate product. This leads to
information asymmetries and impairs a consumer’s ability to understand what
fees represent, hindering consumer choice and, ultimately, competition.
Moreover, wide price variations have been observed for payment accounts,
calling into question the degree of price competition in the market. Price
variations also feed the perception that payment accounts are not fairly
priced, denting consumer confidence and trust in the sector.

Based on these findings and following an
analysis of the available options, the Commission concluded that the
recommended set of policy measures should consist of the introduction of a
standard list of fees charged for services offered on payment accounts; measures
aimed at ensuring the independence of websites comparing fees for services
offered on payment accounts at Member state level and mandating the creation of
such websites where they do not already exist; and requiring payment service
providers to provide ex-post information at least annually on the fees incurred
by consumers on their payment accounts.

The impact assessment also demonstrated
that payment account mobility in the EU is still limited. This is partly caused
by insufficient and often inconsistent information on the switching process,
and a lack of assistance by the staff of payment service providers. Switching
is frequently perceived by customers to be costly or time-consuming; it is also
often unclear how long the process will take and what would happen to direct
debits/credits in the ‘transitional period’ (i.e. the period when the new
account is opened but not all recurring payments have been transferred to it).
Finally, the deadlines set in the Common Principles are often not respected.

The impact assessment also highlighted that
there is no common framework in place to facilitate cross-border switching or
comparability of payment account fees. Although there is significant potential
demand, consumers may be deterred by the complexity of the process in practice.
In a fully functioning internal market, comparable information on payment
account prices across the EU would broaden consumer choice and facilitate
domestic and cross-border switching.

In light of the above issues, and following
a thorough assessment of the available options, the Commission concluded that
in order to improve the functioning of the switching process, measures to give
binding legal force to the provisions of the Common Principles on account
switching are necessary. Moreover, such measures should broaden the scope of
the Common Principles by extending them to cross-border switching. This will
help consumers receive clear and comprehensible information by payment account
providers and therefore identify the payment account most suitable for their
needs. Moreover if consumers, based on such information, decide to move to
another account, a switching service will be at their disposal.

With respect to access, the impact assessment concluded that it is
necessary to ensure the right of access to a payment account with basic
features for every EU consumer by means of binding European legislation. 58 million EU consumers do not have a payment account. Several
factors were identified as the main drivers for this, including the lack of a consistent
regulatory framework across the EU, refusal based on nationality or lack of
residence, the high price of the account as well as consumers' lack of
financial education and awareness and low confidence in the financial system.

The impact assessment considered a range of
policy options and sub-options.[11]
It concluded that the most appropriate policy measure to address the issue
identified is to impose a legal obligation on Member States to ensure the right
of access to a payment account with basic features for every consumer. The
features of basic payment accounts should be enlarged from those contained in
the Recommendation to include internet banking and online purchasing. The new measures will improve the availability, accessibility, and
affordability of basic payment services. This, in turn, is expected to
substantially reduce consumer detriment, enhance financial and social inclusion
and consumer confidence, encourage cross-border mobility and promote the full
participation of the greatest possible number of consumers in the internal
market.

The impact assessment was first submitted
to the Impact Assessment Board on 27 July 2012. The Board asked for
resubmission with additional information on the problem definition, on
subsidiarity aspects, and a critical review of the proportionality and EU value
added of the presented options involving binding measures. The Board also asked
for the presentation of the options and their expected impacts to be improved
and for the report to more consistently refer to the views of different
stakeholder groups throughout. The impact assessment was resubmitted on 29
October 2012. On 28 November the Board stated it could
not issue a positive opinion and proposed some further amendments concerning mostly
the issue of cross-border switching. In response, the Commission services made
additional changes to the text, including reinforcing the interlinks between
the problem areas, clarifying the trans-national dimension of the problem, and
providing further detail on stakeholder views as well as additional insight
with respect to the issue of cross-border switching.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

3.1.        Legal basis

The proposal is based on Article 114 of the
Treaty on the Functioning of the European Union. As explained above, by setting
up an EU level framework in the fields covered by the proposal, it aims to
remove the remaining barriers to the free movement of payment services and, more broadly, to the free movement of goods, persons, services
and capital for which a fully integrated and developed single
market for payment services is vital. The proposal also prevents any further
fragmentation of the single market which could occur if Member States were to
take diverging and inconsistent regulatory actions in this field.

3.2.        Subsidiarity principle

According to the principle of
subsidiarity, EU action may only be taken if the envisaged aims cannot be
achieved by Member States alone. EU intervention is
needed to improve the proper functioning of the
internal market and avoid the distortion of competition in the field of retail
banking.

Different regulatory frameworks, or the
lack thereof, raise barriers to entry across borders. An EU initiative will
better address factors that prevent the pursuit of business or raise the cost
of doing business in another Member State relative to the costs faced by
domestic providers. Credit institutions that seek to operate across borders not
only need to meet differing requirements but are also prevented from making
full use of economies of scale in developing processes and in operations in
areas such as back office activities.

Low customer
mobility in general and inefficient switching mechanisms in particular, create
obstacles to market entrants gaining new clients. Inaction or action from
Member States alone is likely to result in different sets of rules, leading to
uncompetitive markets and unequal levels of consumer protection in the EU. However,
common criteria established at EU level for the functioning of the retail banking
sector will provide consumers with the necessary information required to make
informed choices. This, in turn, will contribute to the strengthening of
competition and to the efficient allocation of resources within the EU
financial retail market to the benefit of businesses and consumers.

Moreover, an
EU-level playing field will allow consumers to participate in e-commerce and
the digital market, and thereby take advantage of more attractive products and
services in other Member States. As regards transparency of bank fees and
switching of accounts, self-regulatory initiatives have been tested but have
proven unsatisfactory and ineffective. Finally, for access to payment accounts
with basic features in particular, implementation of the 2011 Recommendation on
access to a basic payment account has been insufficient. Rules on access
therefore remain patchy throughout the EU and is unlikely to change in the near
future, especially given the global financial turmoil and the retrenchment of national
markets.

3.3.        Proportionality principle

The actions entailed by EU level
intervention are limited to those necessary to achieve the stated objectives.
The elements of the package are complementary and provide the right balance
between effectiveness in ensuring a fully functioning internal market for
retail financial services with a high level of consumer protection and due
regard to efficiency.

With respect to the transparency and
comparability of payment account fees the proposal takes a flexible approach,
for example, by mandating standardised terminology at a national level and only
standardising terminology at an EU level where it is possible to do so. In
relation to switching, the time allowed for the switching of payment accounts
cross border is doubled (this provision will be subject to review after 5
years). For access, whilst this initiative establishes a right of access to a
payment account with basic features, it leaves considerable flexibility to
Member States to determine how this is implemented.

For discrimination in relation to place of
residence, the proposal includes a general provision building on the approach
followed in Article 20 of Directive 2006/123 for non-financial services. A more
specific obligation is only established for payment accounts with basic
features.

Only binding legislation will ensure a
level playing field throughout the EU, minimising costs and maximising the
scope for economies of scale for account providers seeking to operate
cross-border. Although adopting binding legislation imposes an implementation
burden for stakeholders in terms of time and money, this burden will be similar
to that incurred under a Recommendation or self-regulation, if properly
applied.

3.4.        Choice of instrument

Proposed instrument: Directive.

The attempts to address the issues of
comparability of payment account fees and account switching through
self-regulatory measures were largely unsuccessful. The implementation of the
Common Principles for payment account switching in the Member States was mostly
evidenced to be unsatisfactory. This may, to a large degree, be the result of
the lack of monitoring and enforcement measures within a self-regulatory
approach. The efforts made to develop, together with the industry, a self-regulatory
initiative to increase the comparability of payment account fees did not lead
to a successful outcome either. Self-regulation would not, therefore, be an
effective solution.

Compliance with the Commission's
Recommendation on access to a basic payment account was also largely inadequate.
Only three Member States broadly complied with it and more than half the Member
States had no framework in place at all to promote the right of access. As with
comparability and transparency and switching, a non-binding measure proved to
be unsuccessful.

The introduction of a
binding measure is the most effective and efficient way of achieving the set
objectives. Only a binding legislative instrument can guarantee that the policy
options are introduced in all 27 Member States and that the rules are
enforceable. A Directive allows for consideration of national specificities in
the payment account market. This would help to ensure a level playing field for
both consumers and businesses throughout the EU.

4.           BUDGETARY IMPLICATION

This proposal has no implication for the
budget of the EU or those of EU agencies.

5.           OPTIONAL ELEMENTS

5.1.        Review/revision/sunset
clause

The proposal includes a review clause.

5.2.        European Economic Area

The proposed act concerns the internal
market and should therefore extend to the European Economic Area.

5.3.        Detailed explanation of
the proposal

The following short summary aims at
facilitating the decision making process by outlining the main substance of the
Directive.

Article 1 (subject
matter and scope) defines the scope of the Directive.

Article 2
(definitions) contains the definitions of the terms used in the Directive.

Article 3 (List of
the most representative payment services subject to a fee at national level and
standardised terminology) requires Member States to establish a list of the
most representative payment services subject to a fee at national level and standardised
terminology for these services.

Article 4 (Fee
information document and glossary) requires Member States to establish the
obligation for payment service providers to provide consumers with the list of
the most representative payment services subject to a fee at national level
from Article 3 and their corresponding fees. This information should be
provided in a standard format. The provision also requires Member States to
establish the obligation for payment service providers to make available a
glossary of at least the services contained in the list.

Article 5 (Statement
of fees) requires Member States to establish the obligation for payment service
providers to provide customers with information on all fees incurred at least
annually. This information should be provided in a standard format.

Article 6 (Contractual
and commercial information) requires payment service providers to use the standardised
terminology from Article 3 in their contractual and commercial information,
where relevant.

Article 7 (Comparison
websites) establishes an obligation on Member States to ensure that consumers
have access to at least one website comparing payment account fees. Member
States shall establish an accreditation scheme for private operators.

Article 8 (Packaged
offers) requires Member States to establish the obligation on payment service
providers, when offering a payment account together with another financial
service or product as part of a package, to provide the customer with the
necessary information on the separate components.

Article 9 (Provision
of the switching service) requires Member States to establish a general
obligation for payment service providers to make a switching service available
to any consumer who holds an account with a payment service provider located in
the Union.

Article 10 (The
switching service) establishes the specific roles and obligations for the
receiving and transferring payment service providers in the context of the
switching service.

Article 11 (Fees
connected with the switching service) establishes principles to guarantee that
the charges related to the switching services, if any, are appropriate and in
line with the costs incurred.

Article 12 (Financial
loss for consumers) establishes the obligation for payment service providers to
refund charges incurred by consumers due to their mistake or delay during the
switching service. It also aims to prevent consumers from financial loss, as a
result of misdirected credit transfers or direct debits by third parties.

Article 13 (Information
about the switching service) establishes the obligation for payment service
providers to make information available to consumers about the switching
service.

Articles 14 (Non-discrimination) requires
Member States to ensure that consumers are not discriminated against on the
basis of their nationality or residence when applying for a payment account or
in their use of a payment account.

Article 15 (Right of access to a payment
account with basic features) establishes a right of access to a basic payment
account for consumers in any Member State. It also establishes an obligation on
Member States to designate at least one payment service provider to offer a
basic payment account.

Article 16 (Characteristics of a payment
account with basic features) specifies the list of payment services that a
payment account with basic features should include.

Article 17 (Associated fees) requires Member
States to ensure that the services indicated in Article 16 are offered by
payment service providers free of charge or for a reasonable fee.

Article 18 (Framework contracts and
termination) recalls that Directive 2007/64/EC is
applicable to payment accounts with basic features. However it provides for a
limited list of grounds that may justify the termination of the framework
contract of a payment account with basic features by the payment service
provider.

Article 19 (General information on payment
accounts with basic features) requires Member States to ensure that measures
are in place to raise awareness of basic payment accounts.

Article 20 (Competent
authorities) regulates the procedures for designating the national authorities responsible
for the application of provisions in the Directive.

Article 21 (Alternative
dispute resolution) requires Member States to establish specific requirements
for the settlement of disputes between consumers and payment service providers.

Articles 22
(Administrative measures and sanctions) requires Member States to establish
rules on sanctions for breaches of the national provisions adopted to implement
this Directive.

Articles 23
(Delegated acts) and 24 (Exercise of the delegation) empower the Commission to
adopt delegated acts and sets out how this power should be used.

Article 25 (Implementing
acts) empowers the Commission to adopt implementing acts and sets out how this
power should be used.

Articles 26 (Evaluation)
and 27 (Review clause) sets out the mechanisms for assessing the effective
application of the provisions in the Directive and, if needed, propose changes
to it.

Article 28 (Transposition)
provides the obligation for Member States to adopt the legislative measures
necessary to implement the present Directive.

Article 29 (Entry
into force) states the date upon which the Directive enters into force.

Article 30 (Addressees)
states that this Directive is addressed to Member States.

2013/0139 (COD)

Proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

On the comparability of fees related to
payment accounts,
payment account switching
and access to payment accounts with basic features

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 114 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the opinion of the European
Economic and Social Committee[12],

Having regard to the opinion of the
Committee of the Regions[13],

After consulting the European Data
Protection Supervisor[14],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)       In accordance with Article
26(2) TFEU the internal market is to comprise an area without internal
frontiers in which the free movement of goods, persons, services and capital is
ensured. Fragmentation of the internal market is detrimental to
competitiveness, growth and job creation within the Union. Eliminating direct
and indirect obstacles to the proper functioning of the internal market is
essential for its completion. EU action with respect to the internal market in
the retail financial services sector has already substantially contributed to
developing cross-border activity of payment service providers, improving
consumer choice and increasing the quality and transparency of the offers.

(2)       In this respect, Directive
2007/64/EC of the European Parliament and of the Council of 13 November 2007 on
payment services in the internal market amending Directives 97/7/EC,
2002/65/EC, 2005/60/EC, and 2006/48/EC and repealing Directive 97/5/EC
("Payment Services Directive") has established basic transparency
requirements for fees charged by payment service providers in relation to
services offered on payment accounts. This has substantially facilitated the
activity of payment service providers, creating uniform rules with respect to
the provision of payment services and the information to be provided, reduced the
administrative burden and generated cost savings for payment service providers.

(3)       However, more can be done
to improve and develop the single market for retail banking. In particular, the
lack of transparency and comparability of fees as well as the difficulties in
switching payment accounts still pose barriers to the deployment of a fully integrated
market.

(4)       The current conditions of
the Single Market may deter payments services providers from exercising their
freedom to establish or to provide services within the Union because of the
difficulty in attracting customers when entering a new market. Entering new
markets often entails large investments. Such investments are only justified if
the provider foresees sufficient opportunities and a corresponding demand from
consumers. The low level of mobility of consumers with respect to retail financial
services is to a large extent due to the lack of transparency and comparability
as regards the fees and services on offer, as well as difficulties in relation
to the switching of payment accounts. These factors also stifle demand. This is
particularly true in the cross-border context.

(5)       Moreover, significant
barriers to the completion of the single market in the area of payment accounts
may be created by the fragmentation of existing national regulatory frameworks.
Existing provisions at national level with respect to payment accounts, and
particularly with respect to the comparability of fees and payment account
switching diverge. For switching, the lack of uniform binding measures at EU
level has led to divergent practices and measures at national level. These
differences are even more marked in the area of comparability of fees, where no
measures, even of a self-regulatory nature, exist at EU level. Should these
differences become more significant in the future, as banks tend to tailor
their practices to national markets, this would raise the cost of operating
cross-border relative to the costs faced by domestic providers and therefore make
the pursuit of business cross-border less attractive. Cross-border activity in
the internal market is hampered by obstacles to consumers opening a payment
account abroad. Existing restrictive eligibility criteria may prevent European
citizens from moving freely within the Union. Providing all consumers with access
to a payment account will permit their participation in the internal market and
allow them to obtain the benefits of the single market.

(6)       Moreover, since some
prospective customers do not open accounts, either because they are denied them
or because they are not offered adequate products the potential demand for
payment account services in the EU is currently not fully exploited. Wider
consumer participation in the internal market would further incentivise payment
service providers to enter new markets. Also, creating the conditions to allow
all consumers to access a payment account is a necessary means to foster their
participation in the internal market and to allow them to reap the benefits the
Single Market has brought about.

(7)       Transparency and comparability
of fees have been addressed in a self-regulatory initiative, initiated by the
banking industry. However, no final agreement was found on these guidelines. As
regards switching, the common principles established in 2008 by the European
Banking Industry Committee provide a model mechanism for switching between bank
accounts offered by payment service providers located in the same Member State. However, given their non-binding nature, these principles have been applied
in an inconsistent manner throughout the EU and with ineffective results.
Moreover, the Common Principles only address bank account switching at national
level and do not address cross-border switching. Finally, as regards access to
a basic payment account, the Commission Recommendation 2011/442/EU of 18 July
2011 invited Member States to take the necessary measures to ensure its
application at the latest six months after its publication. To date, only few
Member States comply with the main principles of the Recommendation.

(8)       It
is vital, therefore, to establish a uniform set of rules to tackle the issue of
low customer mobility and in particular to improve
comparison of payment account services and fees and to incentivise payment
account switching as well as avoid that consumers who intend to purchase a
payment account cross-border are discriminated on the basis of residency. Moreover,
it is essential to adopt adequate measures to foster
customers’ participation in the payment accounts market.
These measures will incentivize entry for payment
service providers in the internal market and ensure a level playing field, thereby
strengthening competition and the efficient allocation
of resources within the EU financial retail market to the benefit of businesses
and consumers. Also, transparent fee information and switching possibilities
combined with the right of access to basic account services will allow EU
citizens to move and shop around more easily within the Union and therefore benefit
from a fully functioning internal
market in the area of retail financial services and contribute to its further
development.

(9)       This Directive applies to
payment accounts held by consumers. Consequently, accounts held by businesses,
even small or micro enterprises, unless held in a personal capacity, are
outside its scope. Furthermore, this Directive does not cover savings accounts,
which may have more limited payments functions.

(10)     The definitions contained
in the Directive are aligned with those contained in other Union legislation,
and in particular those of Directive 2007/64/EC and those of Regulation (EU) No
260/2012 of the European Parliament and of the Council of 14 March 2012
establishing technical and business requirements for credit transfers and
direct debits in euro and amending Regulation (EC) No 924/2009[15].

(11)     It is vital for consumers
to be able to understand fees so that they can compare offers from different payment
service providers and make informed decisions as to which account is most suitable
for their needs. Comparison between fees cannot be achieved where payment
service providers use different terminology for the same payment services and
provide information in different formats. Standardised terminology, coupled
with targeted fee information for the most representative payment services in a
consistent format, can help consumers to both understand and compare fees.

(12)     Consumers would benefit most
from information that is concise and easy to compare between different payment
service providers. The tools made available to consumers to compare payment
account offers would not have a positive impact if the time invested in going
through lengthy lists of fees for different offers outweighed the benefit of
choosing the offer that represents the best value. Accordingly, fee terminology
should only be standardised for the most representative terms and definitions
within Member States in order to avoid the risk of excessive information.

(13)     The fee terminology should
be determined by national competent authorities, allowing for consideration of
the specificities of local markets. To be considered representative, services
should be subject to a fee at a minimum of one payment service provider in
Member States. In addition, where possible, fee terminology should be
standardised at EU level, thus allowing for comparison across the Union. The European Banking Authority (EBA) should establish guidelines to assist Member
States to determine the most representative payment services subject to a fee
at national level.

(14)     Once national competent
authorities have determined a provisional list of the most representative
services subject to a fee at national level together with terms and
definitions, the Commission should review them to identify, by means of
delegated acts, the services that are common to the majority of Member States
and propose standardised EU level terms and definitions for them.

(15)     In order to help consumers
compare payment account fees throughout the single market easily, payment
service providers should provide consumers with a list of fees charged for the
services listed in the standardised terminology. This would also contribute
towards establishing a level playing field between credit institutions
competing in the payment account market. The fee information document should
only contain information on the most representative payment services in each Member State, using the terms and definitions established at EU level where relevant. In
order to help consumers understand the fees they have to pay for their payment
account, a glossary providing explanations for at least the fees and services contained
in the list should be made available to them. The
glossary should serve as a useful tool to encourage a better understanding of
the meaning of fees, contributing towards empowering consumers to choose from a
wider choice of payment account offers. An obligation
should also be introduced for payment service providers to inform consumers, at
least annually, of all the fees charged on their account. Ex-post information should be provided in a dedicated summary. It
should provide a complete overview of the fees incurred to enable a consumer to
understand what fee expenditures relate to, and to assess the need to either
modify consumption patterns or move to another provider. This benefit would be
maximised by the ex-post fee information covering the same services as the
ex-ante information.

(16)     To meet the needs of consumers,
it is necessary to ensure that fee information on payment accounts is accurate,
clear and comparable. This Directive should therefore lay down common presentation
requirements for the fee information document and the statement of fees, in
order to ensure that they are understandable and comparable for consumers. The
same format, order of items and headings should be followed for every fee
information document and statement of fees in each Member State, allowing
consumers to compare the two documents, thereby maximising understanding and use
of the information. The fee information document and statement of fees should
be clearly distinguishable from other communications. They should be identified
by a common symbol.

(17)     In order to ensure the
consistent use of applicable EU level terminology across the Union, Member
States should establish an obligation for payment service providers to use the
applicable EU level terminology together with the remaining national standardised
terminology identified in the provisional list when communicating with
consumers, including in the fee information document and the statement of fees.
Except for in the fee information document and statement of fees, payment
service providers may use brand names to denote services.

(18)     Comparison
websites are an effective means for consumers to assess the merits of different
payment account offers in a single space. They can provide the right balance
between the need for information to be clear and concise, yet complete and
comprehensive, by enabling users to obtain more detailed information where this
is of interest to them. They can also reduce search costs as consumers will not
need to collect information separately from payment service providers.

(19)     In
order to obtain impartial information on bank fees, consumers should be able to
access comparison websites which are operationally independent from payment
service providers. Member States should therefore ensure that at least one such
website is available to consumers in their respective territories. Such
comparison websites may be operated by competent authorities, other public
authorities and/or accredited private operators. Member
States should establish a voluntary accreditation
scheme allowing private operators of comparison websites to apply for
accreditation in accordance with specified quality criteria. A comparison
website operated by a competent authority or other public authority should be
established where a privately operated website has not been accredited. Such
websites should also comply with the quality criteria.

(20)     It is current practice for
payment service providers to offer a payment account in a package with other
financial products or services. This practice can be a means for payment
service providers to diversify their offer and to compete against each other,
and in the end it can be beneficial for consumers. However the Commission study
on tying practices in the financial sector conducted in 2009 as well as
relevant consultations and consumer complaints have showed that payment service
providers may offer bank accounts packaged with products not requested by
consumers and which are not essential for payment accounts, such as household
insurance. Moreover, it has been observed that these practices may reduce
transparency and comparability of prices, limit purchasing options for
consumers and negatively impact upon their mobility. Therefore, Member States
should ensure that when payment service providers offer packaged payment
accounts consumers are provided with information on the applicable fees for the
payment account and for each other financial service included in the package
separately. These obligations should not apply to services which are naturally
connected to the use of the payment account, such as withdrawals, wire
transfers or payment cards. As a result, these services should be excluded from
the scope of this provision.

(21)     Consumers are only
incentivised to switch accounts if the process does not entail an excessive
administrative and financial burden. The procedure for switching payment
accounts to another payment service provider should be clear and quick. The
fees, if any, charged by payment service providers in relation to the switching
service should be in line with the actual cost incurred by payment service
providers. In order to have positive impact on competition, switching should
also be facilitated at cross-border level. Given that switching cross-border
could be more complex than the switching at national level and may require
payment service providers to adapt and refine their internal procedures, longer
deadlines for the cross-border switch should be foreseen. The need to maintain
different deadlines should be evaluated in the context of the review of the
proposed Directive.

(22)     The switching process
should be as straightforward as possible for the consumer. Accordingly Member
States should ensure that the receiving payment service provider is responsible
for initiating and managing the process on behalf of the consumer.

(23)     Consumers should be allowed
to ask the receiving payment service provider to perform the switch of all or
part of the recurring payments, as well as transferring the remaining balance,
ideally within a single meeting with the receiving payment service provider. To
this end, consumers should be able to sign one authorisation giving consent to
the mentioned tasks. Before giving the authorisation the consumer should be
informed of all the steps of the procedure necessary to complete the switch.

(24)     The co-operation of the
transferring payment service provider is necessary for the switch to be
successful. The receiving payment service provider should be provided by the
transferring payment service provider with all the information it considers
necessary to reinstate the recurrent payments on the new payment account.
However, such information should not exceed what is necessary to carry out the
switch and the receiving payment service provider should not ask for
superfluous information.

(25)     Consumers should not be
subject to penalties or any other financial detriment caused by the
misdirection of incoming credit transfers or direct debits. This is
particularly important for certain categories of payer and payee, such as utilities
companies, which use electronic means (e.g. databases) to store information on
consumers' account details and perform numerous periodical transactions
involving large numbers of consumers.

(26)     Member States should
guarantee that consumers who intend to open a payment account are not
discriminated against on the basis of their nationality or place of residence.
While it is important for payment service providers to ensure that their
customers are not using the financial system for illegal purposes such as fraud,
money laundering or terrorism financing, they should not impose barriers to
consumers who want to benefit from the advantages of the single market by
purchasing payment accounts cross-border.

(27)     Consumers who are legally
resident in the Union and who do not hold a payment account in a certain Member
State should be in a position to open and use a payment account with basic
features in that Member State. In order to ensure the widest possible access to
such accounts, consumers should
have access to them irrespective
of their financial circumstances, such as unemployment or personal bankruptcy,
and of their place of residence. Moreover, the right to access a payment account with basic features in any
Member State should be granted in conformity with the requirements set out in
Directive 2005/60/EC of the European Parliament and of the Council of 26
October 2005 on the prevention of the use of the financial system for the
purpose of money laundering and terrorist financing[16], in particular with regard to
customer due diligence procedures.

(28)     Member States should ensure
that at least one payment service provider offers a payment account with basic
features to consumers. Access should not be overly difficult and should not entail
excessive costs for consumers. In this respect, Member States should consider
factors such as the location of the designated payment service providers in
their territory. In order to minimise the risk for consumers to become
financially excluded, Member States should improve financial education,
including at school, and combat over-indebtedness. Furthermore, Member States
should promote initiatives of payment service providers in order to facilitate
the combination of providing payment accounts with basic features and financial
education.

(29)     To exercise their right to
access a basic payment account, consumers should not already hold a payment
account in the same territory. When it is not possible to use electronic
systems to establish whether or not a consumer already holds a payment account,
payment service providers should accept a declaration by consumers as a reliable means of verifying that they do not already hold a payment account.

(30)     Consumers should be
guaranteed access to a range of basic payment services, for which a minimum
number of operations shall be determined by Member States in a way that should
take into account both the needs of the consumers and the commercial practices
in the Member State concerned. Beyond this list of minimum services, banks may
apply their regular fees. Services linked to basic payment accounts should
include the facility to deposit and withdraw money. Consumers should be able to
undertake essential payment transactions such as receiving income or benefits,
paying bills or taxes and purchasing goods and services, including via direct
debit, credit transfer and the use of a payment card. Such services should
allow the purchase of goods and services online and should give consumers the
opportunity to initiate payment orders via the payment service provider’s
online banking facility, where available. However, a payment account with basic
features should not be restricted to online usage as this would create an
obstacle for consumers without internet access. Consumers should not be given access
to an overdraft facility with a payment account with basic features. However, Member
States may allow payment services providers to offer buffering facilities for
very small amounts in relation to payment accounts with basic features.

(31)     In order to ensure that
basic payment accounts are available to the widest possible range of consumers,
they should be offered free of charge or for a reasonable fee. Furthermore, any
additional charges to the consumer for non-compliance with the terms laid down
in the contract should be reasonable. Member States should establish what
constitutes a reasonable charge according to national circumstances. In order
to ensure consistency and efficiency in the implementation of the principle of
a reasonable charge, the EBA should be tasked with issuing guidelines as
regards the general criteria identified in this Directive.

(32)     The payment service provider should refuse to open or should terminate a contract for a payment account
with basic features only in specific circumstances, such as non-compliance with
the legislation on money laundering and terrorist financing or on the
prevention and investigation of crimes. Even in these cases, a refusal can only
be justified where the consumer does not comply with the provisions of that
legislation and not because the procedure to check compliance with the legislation
is too burdensome or costly.

(33)     Clear and comprehensible
information on the right to a bank account with basic features should be
provided by Member States and payment service providers to consumers. The
information should cover the main features and conditions for using the account
and also the steps consumers should follow to exercise their right to open a
payment account with basic features. Notably, consumers should be informed that
the purchase of additional services is not compulsory in order to access a
payment account with basic features.

(34)     Member States should
designate competent authorities that are empowered to ensure enforcement of
this Directive and that are granted investigation and enforcement powers.
Designated competent authorities shall have adequate resources for the
performance of their duties. Member States should be able to designate
different competent authorities in order to enforce the wide ranging
obligations laid down in this Directive.

(35)     Consumers should have
access to effective and efficient out-of-court
redress procedures for the settlement of disputes arising out of rights and
obligations established under this Directive. Such access is already ensured by
Directive 2013/.../EU insofar as relevant contractual disputes are concerned.
However, consumers should also have access to out-of-court redress procedures
in the event of -pre-contractual disputes concerning rights and obligations
established by this Directive, e.g. when they are denied access to a payment
account with basic features. Compliance with the provisions laid down in this
Directive requires the processing of consumers’ personal data. Such processing
is governed by Directive 95/46/EC of the European Parliament and of the Council
of 24 October 1995 on the protection of individuals with regard to the
processing of personal data and on the free movement of such data[17]. The present Directive should
therefore comply with the rules established in Directive 95/46/EC and the
national laws implementing them.

(36)     In order to attain the
objectives set out in this Directive, the power to adopt acts in accordance
with Article 290 of the Treaty should be delegated to the Commission in respect
of identifying the standardised terminology at EU level for payment services
common to a number of Member States and the related definitions for these terms

(37)     In order to ensure uniform
conditions for the implementation of this Directive, implementing powers should
be conferred on the Commission. These powers relate to the definition of the
format of the fee information document, its common
symbol and the order in which the services contained in
it shall be presented, as well as to the format of the statement
of fees, its common symbol and the order in which the
services contained in it shall be presented. These powers should be exercised
in accordance with Regulation (EU) No 182/2011 of the European Parliament and
of the Council of 16 February 2011 laying down the rules and general principles
concerning mechanisms for control by Member States of the Commission's exercise
of implementing powers.

(38)     Within three years from
entry into force of this Directive and every two years thereafter, Member
States should obtain reliable annual statistics on the functioning of the
measures introduced by the present Directive. They should use any relevant
sources of information and communicate
that information to the
Commission.

(39)     A review of this Directive
should be carried out five years after its entry into force in order to take
account of market developments, such as the emergence of new types of payment
accounts and payment services, as well as developments in other areas of Union
law and the experiences of Member States. The review should assess whether the
measures introduced have improved consumer understanding of payment account
fees, the comparability of payment accounts and the ease of switching accounts.
It should also determine how many basic payment accounts have been opened
including by previously unbanked consumers. It should also assess whether
extended deadlines for payment service providers performing cross-border
switching are to be maintained for a longer period. Also, it should assess
whether the provisions on the information to be provided by payment service
providers when offering packaged products are sufficient or whether additional
measures are needed. The Commission should submit a report to the European
Parliament and the Council accompanied, if appropriate, by legislative
proposals.

(40)     This Directive respects
fundamental rights and observes the principles recognised by the Charter of the
Fundamental Rights of the European Union.

(41)     In accordance with the
Joint Political Declaration of Member States and the Commission of 28 September
2011 on explanatory documents[18],
Member States have undertaken to accompany, in justified cases, the
notification of their transposition measures with one or more documents
explaining the relationship between the components of a Directive and the corresponding parts of national transposition
instruments. With regard to this Directive, the legislator considers the
transmission of such documents to be justified.

HAVE ADOPTED THIS DIRECTIVE:

CHAPTER I
SUBJECT MATTER, SCOPE AND DEFINITIONS

Article 1
Subject matter and scope

1.           This Directive lays down
rules concerning the transparency and comparability of fees charged to
consumers on their payment accounts held within the European Union and provided
by payment service providers located in the Union and rules concerning the
switching of payment accounts within the Union.

2.           This Directive also defines
a framework for the rules and conditions according to which Member States shall
guarantee a right for consumers to open and use payment accounts with basic
features in the Union.

3.           The opening and use of a
payment account with basic features, pursuant to this Directive shall be in
conformity with the provisions of Chapter II of Directive 2005/60/EC

4.           This Directive shall apply
to payment service providers located in the Union.

Article 2
Definitions

For the purposes of this Directive, the
following definitions shall apply:

(a)
‘consumer’ means any natural person who is
acting for purposes which are outside his trade, business, craft or profession;

(b)
‘payment account’ means an account held in the
name of one or more payment service users which is used for the execution of
payment transactions;

(c)
'payment service' means a payment service as
defined in Article 4(3) of Directive 2007/64/EC;

(d)
'payment transaction' means an act, initiated by
the payer or by the payee, of placing, transferring or withdrawing funds,
irrespective of any underlying obligations between the payer and the payee;

(e)
'payment service provider' means a payment service
provider as defined in Article 4(9) of Directive 2007/64/EC;

(f)
'payment instrument' means a payment instrument
as defined in Article 4(23) of Directive 2007/64/EC;

(g)
‘transferring payment service provider' means
the payment service provider from which the information on all or some
recurrent payments is transferred;

(h)
‘receiving payment service provider’ means the
payment service provider to which the information on all or some recurrent
payments is transferred;

(i)
'payer' means a natural or legal person who holds a
payment account and allows a payment order from that payment account or, where
there is no payer's payment account, a natural or legal person who makes a
payment order to a payee's payment account;

(j)
'payee' means a natural or legal person who is the
intended recipient of funds which have been the subject of a payment transaction;

(k)
'fees' means the charges, if any, payable by the
consumer to the payment service provider for the provision of payment services
or for transactions operated on a payment account;

(l)
‘durable medium’ means any
instrument which enables the consumer or the payment services provider to store
information addressed personally to him in a way accessible for future
reference for a period of time adequate for the purposes of the information and
which allows the unchanged reproduction of the information stored;

(m)
‘switching’ means, upon a consumer's request,
transferring from one payment service provider to another the information about
all or some standing orders for credit transfers, recurring direct debits and
recurring incoming credit transfers executed on a payment account, with or
without transferring the positive account balance from one payment account to
the other or closing the former account;

(n)
'direct debit' means a payment service debiting a
payer's payment account, where a payment transaction is initiated by the payee
with the payer's consent;

(o)
'credit transfer' means a national or cross-border
payment service for crediting a payee’s payment account with a payment
transaction or a series of payment transactions from a payer’s payment account
by the payment service provider which holds the payer’s payment account, based
on an instruction given by the payer;

(p)
'standing order' means a service, crediting at
regular intervals a payee's payment account with a series of payment
transactions from a payer's payment account, executed by the payment service
provider which holds the payer's payment account on the basis of an instruction
given by the payer;

(q)
'Funds' means banknotes, coins and scriptural
money as well as electronic money
as defined in Article 2(2) of Directive 2009/110/EC[19];

(r)
'Framework contract' means payment service
contract which governs the future execution of individual and successive
payment transactions and which may contain the obligation and conditions for
setting up a payment account.

CHAPTER II
COMPARABILITY OF FEES CONNECTED WITH PAYMENT ACCOUNTS

Article 3
List of the most
representative payment services subject to a fee at national level and
standardised terminology

1.           Member States shall ensure
that the competent authorities referred to in Article 20, determine a
provisional list of at least 20 payment services accounting for at least 80% of
the most representative payment services subject to a fee at national level. The
list shall contain terms and definitions for each of the services identified.

2.           For the purposes of
paragraph 1, the competent authorities shall have regard to the services:

(1)
most commonly used by consumers in relation to
their payment account;

(2)
which generate the highest cost for consumers per
service;

(3)
which generate the highest overall cost for
consumers;

(4)
which generate the highest profit for payment
service providers per service;

(5)
which generate the highest overall profit for
payment service providers.

The EBA shall develop guidelines pursuant to
Article 16 of Regulation (EU) No 1093/2010 to assist the competent authorities.

3.           Member States shall notify
to the Commission the provisional lists referred to in paragraph 1 within 6 months
of the entry into force of this Directive.

4.           The Commission shall be
empowered to adopt delegated acts, in accordance with Article 24, concerning
the setting out, on the basis of the provisional lists submitted pursuant to
paragraph 3, of an EU standardised terminology for those payment services that
are common to at least a majority of Member States. The EU standardised
terminology will include common terms and definitions for the common services.

5.           After the publication in
the Official Journal of the European Union of the delegated acts referred to in
paragraph 4, each Member State shall without delay integrate the EU
standardised terminology adopted pursuant to paragraph 4 into the provisional
list referred to in paragraph 1 and shall publish this list.

Article 4
Fee information document
and glossary

1.           Member States shall ensure
that before entering into a contract for a payment account with a consumer,
payment service providers provide the consumer with a fee information document
containing the list of the most representative services referred to in
paragraph 5 of Article 3 and the corresponding fees for each service.

2.           Where one or more payment services referred to in paragraph 1 is offered as part
of a package of financial services, the fee information document shall disclose
which of the services referred to in paragraph 1 are included in the package,
the fee for the entire package and the fee for any service that is not referred
to in paragraph 1.

3.           The
title "fee information document" shall prominently appear at the top
of the first page of the fee information document next to a common symbol to
distinguish the document from other documentation.

4.           Member States shall ensure
that payment service providers make available to consumers a glossary of at
least the list of payment services referred to in paragraph 1 and the related
definitions.

5.           Member States shall
establish an obligation for payment service providers to ensure that the glossary
is drafted in clear, unambiguous and non-technical language.

6.           The fee information
document and the glossary shall be made available free of charge at all times
by payment service providers on a durable medium at premises accessible to
consumers and shall be made available in electronic form on their websites.

7.           The
Commission shall be empowered to adopt implementing acts pursuant to Article 26
to define the format of the fee information document, its common symbol and the order in which the services referred to in paragraph 5 of
Article 3 shall be presented in the fee information document.

Article 5
Statement of fees

1.           Member
States shall ensure that payment service providers
provide the consumer with a statement of all fees incurred on their payment
account at least annually.

2.           The statement referred to
in paragraph 1 shall specify the following information:

(a)
the unit fee charged for each service, the
number of times the service was used during the relevant period and the date on
which the service was used;

(b)
the total amount of fees incurred for each
service provided during the relevant period;

(c)
the total amount of fees incurred for all
services provided during the relevant period.

3.           The
title "statement of fees" shall prominently appear at the top of the
first page of the statement next to a common symbol to distinguish the document
from other documentation.

4.           The
Commission shall be empowered to adopt implementing acts pursuant to Article 26
to define the format of the statement of fees, its common symbol and the order in which the services referred to in paragraph 5 of
Article 3 shall be presented in the statement of fees.

Article 6
Contractual and commercial
information

1.           Member
States shall ensure that in their contractual and commercial information,
payment service providers use, where relevant, the terms and definitions
contained in the list of the most representative payment services referred to
in Article 3, paragraph 5.

2.           Payment
service providers may use brand names to designate their services in their
contractual and commercial information, subject to the condition that they
identify, where relevant, the corresponding term in the list referred to in
Article 3, paragraph 5. Payment service providers shall not use brand names in
the fee information document or the statement of fees.

Article 7
Comparison websites

1.           Member
States shall ensure that consumers have access to at least one website
comparing fees charged by payment service providers for services offered on
payment accounts at national level in accordance with paragraphs 2 and 3.

2.           Member
States shall establish a voluntary accreditation scheme for websites comparing
fees charged by payment service providers for services offered on payment
accounts operated by private operators. In order to be
granted accreditation, comparison websites operated by private operators shall:

(a)
be operationally independent of any payment
service provider;

(b)
use plain language and, where relevant, the
terms referred to in Article 3, paragraph 5;

(c)
provide up-to-date information;

(d)
provide a sufficiently broad overview of the
payment accounts market;

(e)
operate an effective enquiry and complaints
handling procedure.

3.           Where
no website is accredited pursuant to paragraph 2, Member States shall ensure that
a website operated by the competent authority referred to in Article 20 or any
other competent public authority is established. Where a website has been
accredited pursuant to paragraph 2, Member States may decide to establish an
additional website operated by the competent authority referred to in Article
20 or any other competent public authority. Websites operated by a competent
authority pursuant to paragraph 1 shall comply with paragraphs 2 (a) to (e).

4.           Member
States shall retain the right to refuse or withdraw accreditation from private
operators in the event of a failure to comply with the obligations in paragraph
2.

5.           Member
States shall ensure that adequate information about the websites referred to in
paragraph 1 is available to consumers. This shall include, where relevant, the
maintenance of a publicly accessible register of accredited comparison
websites.

Article 8
Packaged accounts

1.           Member States shall ensure
that when a payment account is offered together with another service or product
as part of a package, the payment service provider informs the consumer of
whether it is possible to buy the payment account separately and provides
separate information regarding the costs and fees associated with each of the
products and services offered in the package.

2.           Paragraph 1 does not apply
when only payment services as defined in Article 4(3) of Directive 2007/64/EC
are offered together with a payment account.

CHAPTER III
SWITCHING

Article 9
Provision of the switching
service

Member States shall ensure that payment
service providers provide a switching service as described in Article 10 to any
consumer who holds a payment account with a payment service provider located in
the Union.

Article 10
The switching service

1.           Member States shall ensure
that the switching service is initiated by the receiving payment service
provider and provided in accordance with the rules set out in paragraphs 2 to 7.

2.           The switching service
shall be initiated by the receiving payment service provider. The receiving
payment service provider shall request written authorisation from the consumer
to perform the switching service. The authorisation shall allow the consumer to
provide specific consent to the transferring payment service provider to
perform each of the tasks indicated in paragraphs 3(e) and 3(f) and to provide
specific consent to the receiving payment service provider to perform each of
the tasks indicated in paragraphs 4(c), 4(d) and 5. The authorisation shall
allow the consumer to specifically request the transmission by the transferring
payment service provider of the information indicated in paragraphs 3(a) and
3(b). The authorisation shall also specify the date from which recurrent
payments are to be operated from the account opened with the receiving payment
service provider.

3.           Within one business day
from the receipt of the authorisation referred to in paragraph 2, the receiving
payment service provider shall request the transferring payment service
provider to carry out the following tasks:

(a)
transmit to the receiving payment service
provider and, if specifically requested by the consumer pursuant to paragraph
2, to the consumer a list of all existing standing orders for credit transfers
and debtor driven direct debit mandates;

(b)
transmit to the receiving payment service
provider and, if specifically requested by the consumer pursuant to paragraph
2, to the consumer the available information about incoming credit transfers
and creditor driven direct debits executed on the consumer's account in the
previous 13 months;

(c)
transmit to the receiving payment service
provider any additional information deemed necessary by the receiving payment
service provider to perform the switch;

(d)
where the transferring payment service provider
does not provide a system for automated redirection of the standing orders and
direct debits to the account held by the consumer with the receiving payment
service provider, cancel standing orders and stop accepting direct debits on
the date specified in the authorisation;

(e)
where the consumer gave specific consent pursuant
to paragraph 2, transfer any remaining positive balance to the account opened
or held with the receiving payment service provider on the date specified by
the consumer; and

(f)
where the consumer gave specific consent pursuant
to paragraph 2, close the account held with the transferring payment service
provider on the date specified by the consumer.

4.           Upon receipt of the
information requested from the transferring payment service provider referred
to in paragraph 3, the receiving payment service provider shall carry out the
following tasks :

(a)
set up within seven calendar days the standing
orders for credit transfers requested by the consumer and execute them from the
date specified in the authorisation;

(b)
accept direct debits from the date specified in
the authorisation;

(c)
where the consumer gave specific consent pursuant
to paragraph 2, inform payers making recurrent credit transfers into a consumer's
payment account of the details of the consumer's account with the receiving
payment provider. If the receiving payment service provider does not have all
the information it needs to inform the payer, it shall ask the consumer or the
transferring payment service provider to provide the missing information;

(d)
where the consumer gave specific consent
pursuant to paragraph 2, inform payees using a direct debit to collect funds
from the consumer's account of the details of the consumer's account with the
receiving payment service provider and the date from which direct debits shall
be collected from that account. If the receiving payment service provider does
not have all the information it needs to inform the payee, it shall ask the
consumer or the transferring payment service provider to provide the missing
information;

(e)
where the consumer chooses to personally provide
the information indicated in points (c) and (d), provide the consumer with
standard letters providing details of the new account and the starting date
indicated in the authorisation.

5.           Where the consumer gave
specific consent pursuant to paragraph 2, the receiving payment service
provider may carry out any additional tasks necessary for the performance of
the switch.

6.           Upon receipt of a request
from the receiving payment service provider, the transferring payment service
provider shall carry out the following tasks:

(a)
send the receiving payment service provider the
information indicated in points (a), (b) and (c) of paragraph 3 within seven
calendar days of receiving the request;

(b)
where the transferring payment service provider
does not provide a system for automated redirection of the standing orders and
direct debits to the account held by the consumer with the receiving payment
service provider, cancel any standing orders and stop accepting direct debits
on the payment account on the date requested by the receiving payment service
provider;

(c)
transfer the remaining positive balance from the
payment account to the account held with the receiving payment service
provider;

(d)
close the payment account;

(e)
carry out any additional tasks necessary for
performing the switch, pursuant to paragraph 5.

7.           Without prejudice to
Article 55(2) of Directive 2007/64/EC, the transferring payment service
provider shall not block payment instruments before the date agreed with the
receiving payment service provider.

8.           Member States shall ensure
that the provisions contained in paragraphs 1 to 7 also apply when the
switching service is initiated by a payment service provider located in another
  Member State.

9.           In the case indicated in
paragraph 8, the deadlines indicated in paragraphs 3, 4 and 6 shall be doubled.
The present provision shall be subject to review pursuant to Article 27.

Article 11
Fees connected with the
switching service

1.           Member States shall ensure
that consumers are able to access their personal information regarding existing
standing orders and direct debits held by either the transferring or the
receiving payment service provider free of charge.

2.           Member States shall ensure
that the transferring payment service provider provides the information
requested by the receiving payment service provider pursuant to paragraph 6 (a)
of Article 10 without charging the consumer or the receiving payment service
provider.

3.           Member States shall ensure
that fees, if any, applied by the transferring payment service provider to the
consumer for the termination of the payment account held with it are determined
in accordance with Article 45(2) of Directive 2007/64/EC.

4.           Member States shall ensure
that fees, if any, applied by the transferring or the receiving payment service
provider to the consumer for any service provided under Article 10, other than
those referred to in paragraphs 1 to 3, shall be appropriate and in line with
the actual costs of that payment service provider.

Article 12
Financial loss for
consumers

1.           Member States shall ensure
that any financial loss incurred by the consumer resulting from the
non-compliance of a payment service provider involved in the switching process with
its obligations under Article 10 is refunded by that payment service provider.

2.           Consumers shall not bear
any financial loss resulting from mistakes or delays in updating their payment
account details by a payer or payee.

Article 13
Information about the
switching service

1.           Member States shall ensure
that payment service providers make available to consumers the following
information about the switching service:

(a)
the roles of the transferring and receiving
payment service provider for each step of the switching process, as indicated
in Article 10;

(b)
the timeframe for completion of the respective
steps;

(c)
the fees, if any, charged for the switching
process;

(d)
any information that the consumer will be asked
to provide;

(e)
the alternative dispute resolution procedures
scheme referred to in Article 21.

2.           The information shall be
provided free of charge on a durable medium at all branches of the payment
service providers accessible to consumers and be available in electronic form
on their websites at all times.

CHAPTER IV
ACCESS TO PAYMENT ACCOUNTS

Article 14
Non-discrimination

Member States shall ensure that consumers legally
resident in the Union are not discriminated against by reason of their
nationality or place of residence when applying for or accessing a payment
account within the Union.

Article 15
Right of access to a
payment account with basic features

1.           Member States shall ensure
that at least one payment service provider in their territory offers a payment
account with basic features to consumers. Member States shall ensure that
payment accounts with basic features are not only offered by payment service
providers that provide the account solely with online banking facilities.

2.           Member States shall ensure
that consumers legally resident in the Union have the right to open and use a
payment account with basic features with the payment service provider or
providers identified pursuant to paragraph 1. Such a right shall apply
irrespective of the consumer’s place of residence. Member
States shall ensure that the exercise of the right is not made excessively difficult or burdensome for the consumer. Before opening
the payment account with basic features, payment service providers shall verify
whether the consumer holds or does not hold a payment account in their
territory.

3.           Payment services providers
may not refuse an application for access to a payment account with basic
features except in the following cases:

(a)
Where a consumer already holds a payment
account, with a payment service provider located in their territory, which
allows him to make use of the payment services listed in Article 17(1);

(b)
where the conditions established by Chapter II
of Directive 2005/60 are not satisfied.

4.           Member States shall ensure
that, in the cases indicated in paragraph 3, the payment service provider
immediately informs the consumer of the refusal, in writing and free of charge,
unless such disclosure would be contrary to the objectives of national security
or public policy.

5.           Member States shall ensure
that, in the cases indicated in paragraph 3(b), the payment service provider
adopts appropriate measures pursuant to Chapter III of Directive 2005/60.

6.           Member States shall ensure
that access to a payment account with basic features is not made conditional on
the purchase of additional services.

Article 16
Characteristics of a
payment account with basic features

1.           Member States shall ensure
that a payment account with basic features includes the following payment
services:

(a)
services enabling all the operations required
for the opening, operating and closing of a payment account;

(b)
services enabling money to be placed on a
payment account;

(c)
services enabling cash withdrawals within the Union from a payment account;

(d)
execution of the following payment transactions
within the Union:

(1)
direct debit;

(2)
payment transactions through a payment card,
including online payments;

(3)
credit transfers.

2.           Member States shall
determine, for all the services referred to in paragraph 1, a minimum number of
operations which will be provided to the consumer for the fee, if any, referred
to in Article 17. The minimum number of operations shall be reasonable and in
line with the common commercial practice in the Member State concerned.

3.           Member States shall ensure
that the consumer is able to manage and initiate payment transactions from the
consumer's payment account with basic features via the payment service
provider's online banking facilities, where available.

4.           Member States shall ensure
that the consumer is not offeredany overdraft facilities in conjunction with
the payment account with basic features.

Article 17
Associated fees

1.           Member States shall ensure
that the services indicated in Article 16 are offered by payment service
providers free of charge or for a reasonable fee.

2.           Member states shall ensure
that the fees charged to the consumer for non-compliance with the consumer’s
commitments laid down in the framework contract are reasonable .

3.           Member States shall ensure
that the competent authorities establish what constitutes a reasonable fee according
to one or several of the following criteria:

(a)
national income levels;

(b)
average charges associated with payment accounts
in that Member State;

(c)
total costs relating to the provision of the
payment account with basic features;

(d)
national consumer prices.

4.           The EBA shall develop
guidelines pursuant to Article 16 of Regulation (EU) No 1093/2010 to assist the
competent authorities

Article 18
Framework contracts and
termination

1.           Framework contracts
providing access to a payment account with basic features shall be subject to
the provisions of Directive 2007/64/EC unless otherwise specified in paragraphs 2 and 3.

2.           The payment service
provider may unilaterally terminate a framework contract where at least one of
the following conditions is met:

(a)
the consumer deliberately used the account for criminal
activities;

(b)
there has been no transaction on the account for
more than 12 consecutive months;

(c)
the consumer knowingly provided incorrect
information in order to obtain the payment account with basic features where
the correct information would have resulted in the absence of such right;

(d)
the consumer is no longer legally resident in
the Union or has subsequently opened a second payment account in the Member State where he already holds a payment account with basic features.

3.           Member States shall ensure
that where the payment service provider terminates the contract of a payment
account with basic features, it informs the consumer of the grounds and the
justification for the termination at least 2 months before the termination
enters into force, in writing and free of charge.

Article 19
General information on
payment accounts with basic features

1.           Member States shall ensure
that measures are in place to raise awareness among the public about the
availability of payment accounts with basic features, their pricing conditions,
the procedures to be followed in order to exercise the right to access payment
accounts with basic features and the methods for having access to alternative resolution
for the settlement of disputes.

2.           Member States shall ensure
that payment service providers make available to consumers information about
the specific features of the payment account with basic features on offer,
their associated fees and their conditions of use. Member States shall also
ensure that the consumer is informed that the purchase of additional services
is not compulsory to access a payment account with basic features.

CHAPTER V
COMPETENT AUTHORITIES AND ALTERNATIVE DISPUTE RESOLUTION

Article 20
Competent authorities

1.           Member States shall
designate competent authorities to ensure and monitor effective compliance with
this Directive. Those competent authorities shall take all necessary measures
to ensure such compliance. They shall be independent from payment service
providers. They shall be competent authorities within the meaning of Article
4(2) of Regulation 1093/2010.

2.           The authorities referred
to in paragraph 1 shall possess all the powers necessary for the performance of
their duties. Where more than one competent authority is empowered to ensure
and monitor effective compliance with this Directive, Member States shall
ensure that those authorities collaborate closely so that they can discharge
their respective duties effectively.

3.           Member States shall notify
the Commission of the designated competent authorities referred to in paragraph
1 by one year after entry into force of this Directive. They shall inform the
Commission of any division of duties of those authorities. They shall
immediately notify the Commission of any subsequent change concerning the
designation and respective competences of those authorities.

Article 21
Alternative Dispute
Resolution

Member States shall ensure that consumers
have access to effective and efficient out-of-court redress procedures for the
settlement of disputes concerning rights and obligations established under this
Directive.

CHAPTER VI
SANCTIONS

Article 22
Administrative measures
and sanctions

Member States shall lay down the rules on
administrative measures and sanctions applicable to breach of the national
provisions adopted pursuant to this Directive and shall take all measures
necessary to ensure that they are implemented. Such administrative measures and
sanctions shall be effective, proportionate and dissuasive.

CHAPTER VII
FINAL PROVISIONS

Article 23
Delegated acts

The
Commission shall be empowered to adopt delegated acts in accordance with
Article 24 concerning Article 3(4).

Article 24
Exercise of the delegation

1.           The
power to adopt delegated acts is conferred on the Commission subject to the
conditions laid down in this Article.

2.           The
delegation of power referred to in Article 23 shall be conferred for an
indeterminate period of time from the date of entry into force of this
Directive.

3.           The
delegation of powers referred to in Article 23 may be revoked at any time by
the European Parliament or by the Council. A decision of revocation shall put
an end to the delegation of the power specified in that decision. It shall take
effect the day following the publication of the decision in the Official
Journal of the European Union or at a later date specified therein. It shall
not affect the validity of any delegated acts already in force.

4.           As
soon as it adopts a delegated act, the Commission shall notify it
simultaneously to the European Parliament and to the Council.

5.           A
delegated act adopted pursuant to Article 23 shall enter into force only if no
objection has been expressed either by the European Parliament or the Council
within a period of 2 months of notification of that act to the European
Parliament and the Council or if, before the expiry of that period, the
European Parliament and the Council have both informed the Commission that they
will not object. That period shall be extended by 2 months at the initiative of
the European Parliament or the Council.

Article 25
Implementing acts

1.           For
the adoption of implementing acts under Article 4 and 5, the Commission shall
be assisted by the European Banking Committee established by Commission
Decision 2004/10/EC. That committee shall be a committee within the meaning of
Regulation (EU) No 182/2011.

2.           Where
reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011
shall apply.

Article 26
Evaluation

Member States shall provide the Commission
with information on the following matters for the first time within 3 years
from entry into force of this Directive and every 2 years thereafter:

(a)
compliance by payment service providers with the
provisions in Articles 3 to 6;

(b)
the number of accredited comparison websites
established pursuant to Article 7;

(c)
the number of payment accounts that have been
switched, the average fee charged for switching, the number of refusals to
switch.

(d)
the number of payment accounts with basic
features opened, the number and grounds for refusal and the associated charges.

Article 27
Review clause

1.           The Commission shall
present to the European Parliament and the Council, within five years of entry
into force of this Directive, a report on the application of this Directive
accompanied, if appropriate, by a proposal.

2.           The review shall assess,
based also on the information received from Member States pursuant to Article 26,
whether to amend and update the list of services that are part of a payment
account with basic features, having regard to the evolution of means of payment
and technology.

3.           The review shall also
assess whether the extended deadlines established in Article 10(9) shall be
maintained for a longer period of time and whether additional measures in
addition to those adopted pursuant to Article 7 and 8 with respect to comparison
websites and packaged offers are needed.

Article 28
Transposition

1.           Member
States shall adopt and publish, by [one year after entry into force of this Directive] at the latest, the laws,
regulations and administrative provisions necessary to comply with this
Directive. They shall forthwith communicate to the Commission the text of those
provisions.

2.           They
shall apply those provisions from one year after entry into force of this Directive.

3.           When
Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a
reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

4.           Member
States shall communicate to the Commission the text of the main provisions of national law which they adopt in the
field covered by this Directive.

Article 29

Entry
into force

This Directive shall enter into force on
the twentieth day following that
of its publication in the Official Journal of the European Union.

Article 30

Addressees

This
Directive is addressed to the Member States in accordance with the Treaties.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

[1]               http://ec.europa.eu/commission_2010-2014/barnier/headlines/news/2012/10/20121003_en.htm

[2]               "Single Market Act II - Together for new
growth", COM(2012) 573 of 3 October 2012, page 16.

[3]               "Commission Work Programme
2013", COM(2012) 629 of 23 October 2012, Annex I, page 5.

[4]               Eurobarometer

[5]               World Bank report

[6]               Commission communication 'Towards Social investment
for Growth and Cohesion', COM (2013)83 of 20 February 2013

[7]               For
example, in Ireland only
40% of social benefits payments are made through a payment account, while
another 52% by a post office, see Strategy for Financial Inclusion, Steering Group on Financial Inclusion,
Irish Department of Finance, June 2011, p. 14,
http://www.finance.gov.ie/documents/publications/reports/2011/Fininclusreport2011.pdf. Also, it has been estimated that that "the use of non-electronic payments systems costs the
economy approximately €1 billion each year." 2007 survey of the
members of the Irish Payment Services Organisation [....], p. 18.
Similar conclusions were reached in Germany,
where a report on financial inclusion prepared by the German Bundestag
confirmed high administrative costs incurred as result of payments of benefits
made through non-electronic means by the governmental agencies, see Bericht der Bundesregierung zur Umsetzung
der Empfehlungen des Zentralen Kreditausschusses zum Girokonto für jedermann, Drucksache 17/8312, German Bundestag,
27.12.2011, p. 7.

[8]               2011/442/EU: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32011H0442:EN:NOT

[9]               http://ec.europa.eu/internal_market/finservices-retail/docs/inclusion/swd_2012_249_en.pdf

[10]             Directive 2005/60/EC of the European Parliament and of
the Council on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing,
26.10.2005.

[11]             Commission Staff Working Paper (IA paragraph 7 page 56)

[12]             OJ C , , p. .

[13]             OJ C , , p. .

[14]             OJ C xx, xx.xx.xxx, p. .

[15]             OJ L 94, 30.3.2012, p. 22.

[16]             OJ L 309, 25.11.2005, p. 15.

[17]             OJ L 281, 23.11.1995, p. 31.

[18]             OJ C 369, 17.12.2011, p. 14.

[19]             OJ L 267, 10.10.2009, p. 7.