EN Official Journal of the European Union C 408/429

P7_TA(2014)0280

Payment services in the internal market ***I

Amendments adopted by the European Parliament on 3 April 2014 on the proposal for a directive of the European Parliament and of the Council on payment services in the internal market and amending Directives 2002/65/EC, 2013/36/EU and 2009/110/EC and repealing Directive 2007/64/EC (COM(2013)0547 — C7-0230/2013 — 2013/0264(COD)) (1)

(Ordinary legislative procedure: first reading)

(2017/C 408/28)

Amendment 1

Proposal for a directive

Recital 2

Text proposed by the Commission Amendment (2) Directive 2007/64/EC has been adopted in December 2007 on the basis of a Commission proposal of December 2005. Since then, the retail payments market has experienced significant technical innovations with the rapid growth in the number of electronic and mobile payments and the emergence of new types of payments services in the market place. (2) Directive 2007/64/EC was adopted in December 2007 on the basis of a Commission proposal of December 2005. Since then, the retail payments market has experienced significant technical innovations with the rapid growth in the number of electronic and mobile payments and the emergence of new types of payments services in the market place , challenging the current framework .

Amendment 2

Proposal for a directive

Recital 3

Text proposed by the Commission Amendment (3) The review of the Union legal framework on payment services and notably the analysis of the impact of Directive 2007/64/EC and the consultation on the Commission Green Paper ‘Towards an integrated European market for card, internet and mobile payments’ (24) have shown that developments have given rise to important challenges from a regulatory perspective. Important areas of the payments market, in particular card payments, internet and mobile payments are often still fragmented along national borders. Many innovative payment products or services do not fall, entirely or in large parts, under the scope of Directive 2007/64/EC. Furthermore, the scope of Directive 2007/64/EC and in particular, the elements excluded therefrom, as certain payment-related activities from the general rules, proved in a few cases too ambiguous, too general or simply outdated, taking into account the market developments. This has resulted in legal uncertainty, potential security risks in the payment chain and a lack of consumer protection in certain areas. For innovative and easy-to-use digital payment services it has proven to be difficult to take off and provide consumers and retailers with effective, convenient and secure payment methods in the Union. (3) The review of the Union legal framework on payment services and notably the analysis of the impact of Directive 2007/64/EC and the consultation on the Commission Green Paper ‘Towards an integrated European market for card, internet and mobile payments’ (24) have shown that developments have given rise to important challenges from a regulatory perspective. Important areas of the payments market, in particular card payments, internet and mobile payments are often still fragmented along national borders. Many innovative payment products or services do not fall, entirely or in large parts, under the scope of Directive 2007/64/EC. Furthermore, the scope of Directive 2007/64/EC and in particular, the elements excluded therefrom, as certain payment-related activities from the general rules, proved in a few cases too ambiguous, too general or simply outdated, taking into account the market developments. This has resulted in legal uncertainty, potential security risks in the payment chain and a lack of consumer protection in certain areas. For innovative , safe and easy-to-use digital payment services it has proven to be difficult to take off and provide consumers and retailers with effective, convenient and secure payment methods in the Union. There is a large positive potential in this which needs to be more consistently exploited.

Amendment 3

Proposal for a directive

Recital 4

Text proposed by the Commission Amendment (4) Establishing an integrated single market for electronic payments is crucial in order to ensure that consumers, merchants and companies enjoy the full benefits of the internal market, given the development of the digital economy. (4) Establishing an integrated single market for safe electronic payments is crucial in order to support the growth of the Union economy and to ensure that consumers, merchants and companies enjoy choice and transparency of payment services to benefit from the full benefits of the internal market, given the development of the digital economy.

Amendment 4

Proposal for a directive

Recital 5

Text proposed by the Commission Amendment (5) New rules should be provided in order to close the regulatory gaps while at the same time providing for more legal clarity and ensuring a consistent application of the legislative framework across the Union. Equivalent operating conditions should be guaranteed to both existing and new players on the market, facilitating new means of payment to reach a broader market and ensuring a high level of consumer protection in the use of these payment services across the whole of the Union. This should lead to a downward trend in costs and prices for payment services users and more choice and transparency of payment services. (5) New rules should be provided in order to close the regulatory gaps while at the same time providing for more legal clarity and ensuring a consistent application of the legislative framework across the Union. Equivalent operating conditions should be guaranteed to both existing and new players on the market, facilitating new means of payment to reach a broader market and ensuring a high level of consumer protection in the use of these payment services across the whole of the Union. This should generate efficiencies in the payment system as a whole and should lead to a downward trend in costs and prices for payment services users and more choice and transparency of payment services , while strengthening the trust of consumers in a harmonised payments market .

Amendment 5

Proposal for a directive

Recital 5 a (new)

Text proposed by the Commission Amendment (5a) The single euro payments area (‘SEPA’) will reach a major milestone in 2014 with the migration of national credit transfers and direct debits in euro to SEPA-compliant credit transfers and direct debits. The construction of an integrated, competitive, innovative and level-playing field market for euro retail payments in the euro area should be continued in order to achieve a truly internal market for payment services in the Union. This ongoing construction should be sustained by strengthened governance under the leadership of the European Central Bank (ECB). The announcement by the ECB of the creation of the euro retail payments board (ERPB) as successor to the SEPA Council, should contribute to and facilitate achieving that objective. The composition of the ERPB, taking into account a better balance between the interests of the supply and the demand side of the payment market should ensure effective advice as regards the orientation of the SEPA project in the future and potential obstacles towards its achievement, ways to address them and ways to foster innovation, competition and integration in retail payments in euro in the Union. The Commission participation as an observer should be envisaged in order to ensure that the tasks, composition and functioning of the ERPB contribute to the promotion of the SEPA project.

Amendment 6

Proposal for a directive

Recital 6

Text proposed by the Commission Amendment (6) In recent years, the security risks related electronic payments have increased, which is due to the greater technical complexity of electronic payments, the continuously growing volumes of electronic payments worldwide and the emerging types of payment services. As safe and secure payment services constitute a vital condition for a well-functioning payment services market, users of payment services should be adequately protected against such risks. Payment services are essential for the maintenance of vital economic and societal activities and therefore payment services providers such as credit institutions have been qualified as market operators according to Article 3(8) of Directive [pls insert number of NIS Directive after adoption] of the European Parliament and of the Council (25). (6) In recent years, the security risks related electronic payments have increased, which is due to the greater technical complexity of electronic payments, the continuously growing volumes of electronic payments worldwide and the emerging types of payment services. As safe and secure payment services constitute a vital condition for a well-functioning payment services market, users of payment services should be adequately protected against such risks. Payment services are essential for the maintenance of vital economic and societal activities and therefore payment services providers such as credit institutions have been qualified as market operators according to Article 3(8) of Directive [pls insert number of NIS Directive after adoption] of the European Parliament and of the Council (25). When processing personal data for the purposes of this Directive the security requirements laid down in Articles 16 and 17 of Directive 95/46/EC should be complied with.

Amendment 7

Proposal for a directive

Recital 7

Text proposed by the Commission Amendment (7) In addition to the general measures to be taken at Member States’ level in Directive [pls insert number of NIS Directive after adoption], the security risks related to payment transactions should also be addressed at the level of the payment service providers. The security measures to be taken by the payment service providers need to be proportionate to the security risks concerned. A regular reporting mechanism should be established, so as to ensure payment services should provide the competent authorities on an annual basis with updated information on the assessment of their security risks and the (additional) measures that they have taken in response to these risks. Furthermore, in order to ensure that damages to other payment service providers and payment systems, such as a substantial disruption of a payment system and to users is kept to a minimum, it is essential that payment service providers have the obligation to report within undue delay major security incidents to the European Banking Authority. (7) In addition to the general measures to be taken at Member States’ level in Directive [pls insert number of NIS Directive after adoption], the security risks related to the choice of technical system to offer payment transactions should also be addressed at the level of the payment service providers and for their cost and responsibility . The security measures to be taken by the payment service providers need to be in proportion to the security risks concerned for their clients . A regular reporting mechanism should be established, so as to ensure payment services should provide the competent authorities at least three times a year with updated information on the assessment of their security risks and the additional measures that they have taken in response to reduce these risks. Furthermore, in order to ensure that damages to other payment service providers and payment systems, such as a substantial disruption of a payment system and to users is kept to a minimum, it is essential that payment service providers have the obligation to report within undue delay major security incidents to the European Banking Authority , which should publish an annual report on the security of digital payment services in the Union. .

Amendment 8

Proposal for a directive

Recital 7 a (new)

Text proposed by the Commission Amendment (7a) For consumers to understand their rights and obligations under this Directive, they should be informed in a clear and comprehensible way. Within two years of the entry into force of the Directive, the Commission should therefore produce a consumer friendly electronic leaflet listing, in a clear and easily comprehensible manner, the rights and obligations of consumers laid down in this Directive and in related Union law on payment services. That information should be made available on the websites of the Commission, the European Supervisory Authority (European Banking Authority) (‘EBA’), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council (1a) , and national banking regulators. The Member States shall ensure that payment services providers will make the leaflet in its original format available, free of charge, to all their existing and new clients electronically on their websites and on paper at their branches, their agents and the entities to which their activities are outsourced.

Amendment 9

Proposal for a directive

Recital 8

Text proposed by the Commission Amendment (8) The revised regulatory framework for payment services is complemented by Regulation (EU) [XX/XX/XX] of the European Parliament and of the Council (26). That Regulation introduces rules with regard to the charging of multilateral and bilateral interchange fees for all consumer debit and credit card transactions and electronic and mobile payments based on those transactions, and puts restrictions on the use of certain business rules with regard to card transactions. That Regulation aims at further accelerating the achievement of an effective integrated market for card based payments. (8) The revised regulatory framework for payment services is complemented by Regulation (EU) [XX/XX/XX] of the European Parliament and of the Council (26). That Regulation introduces rules with regard to the charging of multilateral and bilateral interchange fees for all consumer debit and credit card transactions and electronic and mobile payments based on those transactions thus removing an important barrier between national payment markets , and puts restrictions on the use of certain business rules with regard to card transactions. That Regulation aims at further accelerating the achievement of an effective integrated market for card based payments.

Amendment 10

Proposal for a directive

Recital 9

Text proposed by the Commission Amendment (9) In order to avoid divergent approaches across Member States to the detriment of consumers, the provisions on transparency and information requirements for payment service providers in this Directive should also apply to transactions where the payer's or payee's payment service provider is located within the European Economic Area (hereinafter ‘EEA’) and the other payment service provider is located outside the EEA. It is also appropriate to extend the application of transparency and information provisions to transactions in all currencies between payment service providers that are located within the EEA. (9) In order to avoid divergent approaches across Member States to the detriment of consumers, the provisions on transparency and information requirements for payment service providers and on rights and obligations in relation to the provision and use of payment services in this Directive should also apply to transactions where the payer's or payee's payment service provider is located within the European Economic Area (hereinafter ‘EEA’ ) and the other payment service provider is located outside the EEA. On the basis of a Commission review and, if appropriate, a legislative proposal, the application of this Directive to such transactions should also be extended to include the major part of the provisions on rights and obligations in relation to providing and using payment services. It is also appropriate to extend the application of transparency and information provisions to transactions in all currencies between payment service providers that are located within the EEA.

Amendment 11

Proposal for a directive

Recital 10

Text proposed by the Commission Amendment (10) The definition of payment services should be technologically neutral and allow for the further development of new types of payment services, while ensuring equivalent operating conditions for both existing and new payment service providers. (10) The definitions of payment services , payment protocols and standards should be technologically neutral and allow for the further development of new types of payment services, while ensuring equivalent safe operating conditions for both existing and new payment service providers.

Amendment 12

Proposal for a directive

Recital 12

Text proposed by the Commission Amendment (12) Feedback from the market shows that the payment activities covered by the limited network exception often comprise massive payment volumes and values and offer to consumers hundreds or thousands of different products and services, which does not fit the purpose of the limited network exemption as provided for in Directive 2007/64/EC. That implies greater risks and no legal protection for payment service users, in particular for consumers and clear disadvantages for regulated market actors. A more precise description of a limited network, in line with Directive 2009/110/EC, is necessary in order to limit those risks. A payment instrument should thus be considered to be used within such a limited network if it can be used only either for the purchase of goods and services in a specific store or chain of stores , or for a limited range of goods or services, regardless of the geographical location of the point of sale. Such instruments could include store cards, petrol cards, membership cards, public transport cards, meal vouchers or vouchers for specific services, which are sometimes subject to a specific tax or labour legal framework designed to promote the use of such instruments to meet the objectives laid down in social legislation. Where such a specific-purpose instrument develops into a general purpose instrument, the exemption from the scope of this Directive should no longer apply. Instruments which can be used for purchases in stores of listed merchants should not be exempted from the scope of this Directive as such instruments are typically designed for a network of service providers which is continuously growing. The exemption should apply in combination with the obligation of potential payment service providers to notify activities falling within the scope of the definition of a limited network. (12) Feedback from the market shows that the payment activities covered by the limited network exception often comprise massive payment volumes and values and offer to consumers hundreds or thousands of different products and services, which does not fit the purpose of the limited network exemption as provided for in Directive 2007/64/EC. That implies greater risks and no legal protection for payment service users, in particular for consumers and clear disadvantages for regulated market actors. A more precise description of a limited network, in line with Directive 2009/110/EC, is necessary in order to limit those risks. A payment instrument should thus be considered to be used within such a limited network if it can be used only either for the purchase of goods and services with a specific retailer or retail chain, or for a limited range of goods or services, regardless of the geographical location of the point of sale. Such instruments could include store cards, petrol cards, membership cards, public transport cards, parking ticketing, meal vouchers or vouchers for specific services, which are sometimes subject to a specific tax or labour legal framework designed to promote the use of such instruments to meet the objectives laid down in social legislation. Where such a specific-purpose instrument develops into a general purpose instrument, the exemption from the scope of this Directive should no longer apply. Instruments which can be used for purchases in stores of listed merchants should not be exempted from the scope of this Directive as such instruments are typically designed for a network of service providers which is continuously growing. The exemption should apply in combination with the obligation of potential payment service providers to notify activities falling within the scope of the definition of a limited network.

Amendment 13

Proposal for a directive

Recital 13

Text proposed by the Commission Amendment (13) Directive 2007/64/EC exempts from its scope certain payment transactions by means of telecom or information technology devices where the network operator not only acts as an intermediary for the delivery of digital goods and services through the device in question, but also adds value to these goods or services. In particular, this exemption allows for so called operator billing or direct to phone-bill purchases which, starting with ringing tones and premium SMS-services, contributes to the development of new business models based on low-value sale of digital content. Feedback from the market shows no evidence that this payment method, trusted by consumers as convenient for low threshold payments, has developed into a general payment intermediation service. However, due to the ambiguous wording of the current exemption, this rule has been implemented differently in Member States. This translates into lack of legal certainty for operators and consumers and has occasionally allowed other payment intermediation services to claim eligibility for the exemption of the application of Directive 2007/64/EC. It is therefore appropriate to narrow down the scope of that Directive. The exemption should focus specifically on micro-payments for digital content, such as ringtones, wallpapers, music, games, videos, or applications. The exemption should only apply to payment services when provided as ancillary services to electronic communications services (i.e. the core business of the operator concerned). (13) Directive 2007/64/EC exempts from its scope certain payment transactions by means of telecom or information technology devices where the network operator not only acts as an intermediary for the delivery of digital goods and services through the device in question, but also adds value to these goods or services. In particular, this exemption allows for so called operator billing or direct to phone-bill purchases which, starting with ringing tones and premium SMS-services, contributes to the development of new business models based on low-value sale of digital content. Feedback from the market shows no evidence that this payment method, trusted by consumers as convenient for low threshold payments, has developed into a general payment intermediation service. However, due to the ambiguous wording of the current exemption, this rule has been implemented differently in Member States. This translates into lack of legal certainty for operators and consumers and has occasionally allowed other payment intermediation services to claim eligibility for the exemption of the application of Directive 2007/64/EC. It is therefore appropriate to narrow down the negative scope of that Directive. In order not to leave large-scale payment activities unregulated, the exemption should focus on micro-payments for digital content, such as ringtones, wallpapers, music, games, videos, or applications. The exemption should only apply to payment services when provided as ancillary services to electronic communications services (i.e. the core business of the operator concerned).

Amendment 14

Proposal for a directive

Recital 13 a (new)

Text proposed by the Commission Amendment (13a) Directive 2007/64/EC exempts from its scope the technical service providers which support the provision of payment services without at any time entering into the holding of funds to be transferred. Typical services that fall within the scope of that exemption are processing and storage of data, privacy protection services and IT technology. As such, the exemption also covers the development of technical payment solutions to payment service providers (sometimes referred to as ‘digital wallets’), typically making their payment services accessible on a mobile or IT device.

Amendment 15

Proposal for a directive

Recital 15

Text proposed by the Commission Amendment (15) Service providers seeking to benefit from an exemption under Directive 2007/64/EC often do not consult authorities on whether their activities are covered or exempted under that Directive but rely on their own assessments. It appears that some exemptions may have been used by payment service providers to redesign business models so that the payment activities offered would be outside the scope of that Directive. This may result in increased risks for payment service users and diverging conditions for payment service providers in the internal market. Service providers should therefore be obliged to notify certain activities to the competent authorities, to ensure a homogenous interpretation of the rules throughout the internal market. (15) Service providers seeking to benefit from an exemption under Directive 2007/64/EC often do not consult authorities on whether their activities are covered or exempted under that Directive but rely on their own assessments. It appears that some exemptions may have been used by payment service providers to redesign business models so that the payment activities offered would be outside the scope of that Directive. This may result in increased risks for payment service users and diverging conditions for payment service providers in the internal market. Service providers should therefore be obliged to notify their activities to the competent authorities, to ensure a homogenous interpretation of the rules throughout the internal market.

Amendment 16

Proposal for a directive

Recital 18

Text proposed by the Commission Amendment (18) Since the adoption of Directive 2007/64/EC new types of payment services have emerged, especially in the area of internet payments. In particular, third party providers (hereinafter ‘TPPs’) have evolved, offering so-called payment initiation services to consumers and merchants, often without entering into the possession of the funds to be transferred. Those services facilitate the e-commerce payments by establishing a software bridge between the website of the merchant and the online banking platform of the consumer in order to initiate internet payments on the basis of credit transfers or direct debits. The TPPs offer a low-cost alternative to card payments for both merchants and consumers and provide consumers a possibility to shop online even if they do not possess credit cards. However, as TPPs are currently not subject to Directive 2007/64/EC, they are not necessarily supervised by a competent authority and do not follow the requirements of Directive 2007/64/EC. This raises a series of legal issues, such as consumer protection, security and liability as well as competition and data protection issues. The new rules should therefore respond to those issues . (18) Since the adoption of Directive 2007/64/EC new types of payment services have emerged, especially in the area of internet payments. In particular, third party providers (hereinafter ‘TPPs’) have evolved, offering so-called payment initiation services to consumers and merchants, often without entering into the possession of the funds to be transferred. Those services facilitate the e-commerce payments by establishing a software bridge between the website of the merchant and the online banking platform of the consumer in order to initiate internet payments on the basis of credit transfers or direct debits. The TPPs offer a low-cost alternative to card payments for both merchants and consumers and provide consumers a possibility to shop online even if they do not possess payment cards . TPPs also have a promising potential when it comes to facilitating cross-border e-commerce in the internal market. TPPs also represent important security challenges to the safeguarding of the integrity of payments and personal data made available to them by payers . However, as TPPs are currently not subject to Directive 2007/64/EC, they are not necessarily supervised by a competent authority and do not follow the requirements of Directive 2007/64/EC. This raises a series of legal issues, such as consumer protection, security and liability as well as competition and data protection issues. The new rules should therefore address all those challenges appropriately and ensure that TPPs operating in the Union are licensed or registered and supervised as payment institutions .

Amendment 17

Proposal for a directive

Recital 19

Text proposed by the Commission Amendment (19) Money remittance is a simple payment service that is usually based on cash provided by a payer to a payment service provider, which remits the corresponding amount, for example via communication network, to a payee or to another payment service provider acting on behalf of the payee. In some Member States supermarkets, merchants and other retailers provide to the public a corresponding service enabling the payment of utility and other regular household bills. Those bill-paying services should be treated as money remittance, unless the competent authorities consider the activity to fall under another payment service. (19) Money remittance is a simple payment service that is usually based on cash provided by a payer to a payment service provider, which remits the corresponding amount, for example via communication network, to a payee or to another payment service provider acting on behalf of the payee. In some Member States automated teller machines (ATMs), supermarkets, merchants and other retailers provide to the public a corresponding service enabling the payment of utility and other regular household bills. Those bill-paying services should be treated as money remittance, unless the competent authorities consider the activity to fall under another payment service.

Amendment 18

Proposal for a directive

Recital 19 a (new)

Text proposed by the Commission Amendment (19a) To complete the internal market in payments and to ensure that it is conducive to a striving electronic commerce and to economic growth, it is important to allow potential new entrants and current payment service providers alternatives to card payments in order to develop and enhance their services to consumers and retailers. Therefore, EBA, in close cooperation with the ECB, shall, within two years of the entry into force of this Directive, provide a comprehensive assessment of the feasibility and desirability of introducing a requirement of making the IBAN, as defined in Article 2(15) of Regulation (EU) No 260/2012, or a similar identifier, available in an electronically readable format on debit cards, and on other payment instruments, as appropriate. The assessment shall take into consideration the rules concerning fraud prevention and data protection.

Amendment 19

Proposal for a directive

Recital 27

Text proposed by the Commission Amendment (27) Payment service providers when engaging in the provision of one or more of the payment services covered by this Directive should always hold payment accounts used exclusively for payment transactions. For payment institutions to be able to provide payment services, it is indispensable that they have access to payment accounts. Member States should ensure that such access is provided in a way proportionate to the legitimate aim it intends to serve. (27) Payment service providers when engaging in the provision of one or more of the payment services covered by this Directive should always hold payment accounts used exclusively for payment transactions. For payment institutions to be able to provide payment services, it is indispensable that they have access to payment accounts. Member States should ensure that such access is non-discriminatory and provided in a way proportionate to the legitimate aim it intends to serve. While the access could be basic, it should always be extensive enough for the payment institution to be able to provide its services in an unobstructed and efficient way. The fees charged for such access should not be unreasonable or out of line with standard business practice.

Amendment 20

Proposal for a directive

Recital 29

Text proposed by the Commission Amendment (29) Overall, the functioning of the cooperation between the competent national authorities responsible for granting authorisations to payment institutions, carrying out controls and deciding on the withdrawal of those authorisations, has proven to work satisfactorily. However, the cooperation between the competent authorities should be enhanced, both with regard to the information exchanged as well as a coherent application and interpretation of the Directive, in cases where the authorised payment institution would like to provide payment services also in a Member State other than its home Member State, in exercise of the right of establishment or the freedom to provide services (‘passporting’). The European Banking Authority (EBA) should be asked to prepare a set of guidelines on the cooperation and data exchange. (29) Overall, the functioning of the cooperation between the competent national authorities responsible for granting authorisations to payment institutions, carrying out controls and deciding on the withdrawal of those authorisations, has proven to work satisfactorily. However, the cooperation between the competent authorities should be enhanced, both with regard to the information exchanged as well as a coherent application and interpretation of the Directive, in cases where the authorised payment institution would like to provide payment services also in a Member State other than its home Member State, in exercise of the right of establishment or the freedom to provide services (‘passporting’). EBA, should prepare a set of guidelines on the cooperation and data exchange after consulting an advisory panel set up for the purposes of implementation of this Directive in accordance with Regulation (EU) No 1093/2010 and representing, inter alia, stakeholders operating outside the banking industry .

Amendment 21

Proposal for a directive

Recital 30

Text proposed by the Commission Amendment (30) To enhance transparency on the payment institutions authorised by or registered with competent authorities, including their agents and branches, a web portal serving as European electronic access point should be established with EBA, interconnecting the national registers. These measures should aim at contributing to the enhancement of the cooperation between the competent authorities. (30) To enhance transparency on the payment institutions authorised by or registered with competent authorities, including their agents and branches, a web portal serving as European electronic access point should be established with EBA, interconnecting the national registers. These measures should aim at contributing to the enhancement of the cooperation between the competent authorities , fully contributing to a payments environment which nurtures competition, innovation and security to the benefits of all stakeholders and consumers in particular .

Amendment 22

Proposal for a directive

Recital 32

Text proposed by the Commission Amendment (32) While this Directive specifies the minimum set of powers competent authorities should have when supervising the compliance of payment institutions, these powers are to be exercised with respect to fundamental rights, including the right to privacy. For the exercise of those powers which may amount to serious interferences with the right to respect private and family life, home and communications, Member States should have in place adequate and effective safeguards against any abuse or arbitrariness, for instance, where appropriate through prior authorisation from the judicial authority of the Member State concerned. (32) While this Directive specifies the minimum set of powers competent authorities should have when supervising the compliance of payment institutions, these powers are to be exercised with respect to fundamental rights, including the right to privacy. Without prejudice to the control of an independent authority (national data protection authority) under Article 8(3) of the Charter of Fundamental Rights of the European Union, for the exercise of those powers which may amount to serious interferences with the right to respect private and family life, home and communications, Member States should have in place adequate and effective safeguards against any abuse or arbitrariness, for instance, where appropriate through prior authorisation from the judicial authority of the Member State concerned.

Amendment 23

Proposal for a directive

Recital 34

Text proposed by the Commission Amendment (34) It is essential for any payment service provider to be able to access the services of technical infrastructures of payment systems. Such access should, however, be subject to appropriate requirements in order to ensure integrity and stability of those systems. Each payment service provider applying for a participation in a payment system should furnish proof to the participants of the payment system that its internal arrangements are sufficiently robust against all kinds of risk. These payment systems typically include e.g. the four-party card schemes as well as major systems processing credit transfers and direct debits. In order to ensure equality of treatment throughout the Union as between the different categories of authorised payment service providers, according to the terms of their licence, it is necessary to clarify the rules concerning access to the provision of payment services and access to payment systems. (34) It is essential for any payment service provider to be able to access the services of technical infrastructures of payment systems. Such access should, however, be subject to appropriate requirements in order to ensure integrity and stability of those systems. Each payment service provider applying for a participation in a payment system should bear the risk of its own choice of system and furnish proof to the participants of the payment system that its internal arrangements are sufficiently robust against all kinds of risk and fraudulent misuse by a third party due to the choice of operating systems . These payment systems typically include e.g. the four-party card schemes as well as major systems processing credit transfers and direct debits. In order to ensure equality of treatment throughout the Union as between the different categories of authorised payment service providers, according to the terms of their licence, it is necessary to clarify the rules concerning access to the provision of payment services and access to payment systems.

Amendment 24

Proposal for a directive

Recital 41

Text proposed by the Commission Amendment (41) This Directive should specify the obligations on payment service providers as regards the provision of information to the payment service users who should receive the same high level of clear information about payment services in order to make well-informed choices and be able to choose freely within the Union. In the interest of transparency this Directive should lay down the harmonised requirements needed to ensure that necessary and sufficient information is given to the payment service users with regard to the payment service contract and the payment transactions. In order to promote smooth functioning of the single market in payment services, Member States should be able to adopt only those information provisions laid down in this Directive. (41) This Directive should specify the obligations on payment service providers as regards the provision of information to the payment service users who should receive the same high level of clear information about payment services in order to make well-informed choices based on a comparison of the conditions of the various providers (particularly regarding their charges structure) and be able to choose freely within the Union. In the interest of transparency this Directive should lay down the harmonised requirements needed to ensure that necessary, sufficient and comprehensible information is given to the payment service users with regard to the payment service contract and the payment transactions. In order to promote smooth functioning of the single market in payment services, Member States should be able to adopt only those information provisions laid down in this Directive , as well as under Directive 95/46/EC and Regulation (EC) No 45/2001 .

Amendment 25

Proposal for a directive

Recital 43

Text proposed by the Commission Amendment (43) The information required should be proportionate to the needs of users and communicated in a standard format. However, the information requirements for a single payment transaction should be different from those of a framework contract which provides for the series of payment transactions. (43) The information required should be proportionate to the needs of users and communicated in a standard and clear format , enhancing efficiency . However, the information requirements for a single payment transaction should be different from those of a framework contract which provides for the series of payment transactions.

Amendment 26

Proposal for a directive

Recital 46

Text proposed by the Commission Amendment (46) This Directive should provide for the consumer’s right to receive relevant information free of charge before being bound by any payment service contract. The consumer should also be able to request prior information as well as the framework contract, on paper, free of charge at any time during the contractual relationship, so as to enable them to compare payment service providers’ services and their conditions and in case of any dispute verify their contractual rights and obligations. Those provisions should be compatible with Directive 2002/65/EC. The explicit provisions on free information in this Directive should not have the effect of allowing charges to be imposed for the provision of information to consumers under other applicable Directives. (46) This Directive should provide for the consumer’s right to receive relevant information free of charge before being bound by any payment service contract. The consumer should also be able to request prior information as well as the framework contract, on paper, free of charge at any time during the contractual relationship, so as to enable them to compare payment service providers’ services and their conditions and in case of any dispute verify their contractual rights and obligations , therefore maintaining a high level of consumer protection . Those provisions should be compatible with Directive 2002/65/EC. The explicit provisions on free information in this Directive should not have the effect of allowing charges to be imposed for the provision of information to consumers under other applicable Directives.

Amendment 27

Proposal for a directive

Recital 49

Text proposed by the Commission Amendment (49) In order to facilitate customer mobility, it should be possible for consumers to terminate a framework contract after a year without incurring charges. For consumers, the period of notice agreed should be no longer than a month, and for payment service providers no shorter than two months. This Directive should be without prejudice to the payment service provider’s obligation to terminate the payment service contract in exceptional circumstances under other relevant Union or national legislation, such as legislation on money laundering and terrorist financing, any action targeting the freezing of funds, or any specific measure linked to the prevention and investigation of crimes. (49) In order to facilitate customer mobility, it should be possible for consumers to terminate a framework contract without incurring charges. For consumers, the period of notice agreed should be no longer than a month, and for payment service providers no shorter than three months. This Directive should be without prejudice to the payment service provider’s obligation to terminate the payment service contract in exceptional circumstances under other relevant Union or national legislation, such as legislation on money laundering and terrorist financing, any action targeting the freezing of funds, or any specific measure linked to the prevention and investigation of crimes.

Amendment 28

Proposal for a directive

Recital 51

Text proposed by the Commission Amendment (51) It is necessary to set up the criteria under which TPPs are allowed to access and use the information on the availability of funds on the payment service user account held with another payment service provider. In particular, necessary data protection and security requirements set or referred to in this Directive or included in the EBA guidelines should be fulfilled by both the TPP and the payment service provider servicing the account of the payment service user. The payers should give an explicit consent to the TPP to access their payment account and be properly informed about the extent of this access. To allow the development of other payment services providers which cannot receive deposits, it is necessary that credit institutions provide them with the information on the availability of funds if the payer has given consent for this information to be communicated to the payment service provider issuer of the payment instrument . (51) It is necessary to set up the criteria under which TPPs are allowed to access and use the information on the availability of funds on the payment service user’s account held with another payment service provider. In particular, necessary data protection and security requirements set or referred to in this Directive or included in EBA implementing technical standards should be fulfilled by both the TPP and the payment service provider servicing the account of the payment service user. EBA should develop those implementing technical standards after consulting the advisory panel referred to in Recital 29. Payers should be informed unequivocally where they are using a TPP and should give explicit consent to the TPP to access their payment account and be properly informed about the extent of this access. In addition to TPPs, there are other third-party payment instrument issuers in the market which , like TPPs, cannot receive deposits but which, unlike TPPs, build their business models on the issuance of card-based payment instruments. In order to allow for the development of those third-party payment instrument issuers, it is necessary that account servicing payment service providers provide them with the information on the availability of funds if the payer has given consent for this information to be communicated to them . To ensure free access to the market by innovative payment service providers, no contract or agreement between an account servicing payment service provider and a TPP should be required.

Amendment 29

Proposal for a directive

Recital 51 a (new)

Text proposed by the Commission Amendment (51a) To facilitate innovation and the maintenance of a level playing field, TPPs should not be required to enter into contractual relationships with account servicing payment service providers in the context of payment initiation or account information services. TPPs should only be required to comply with the general legislative and supervisory framework.

Amendment 30

Proposal for a directive

Recital 54

Text proposed by the Commission Amendment (54) In the case of unauthorized payment transactions the payer should be refunded immediately the amount of the respective transaction. In order to prevent the payer from any disadvantages, the credit value date of the refund should not be later than the date when the respective amount has been debited. In order to provide an incentive for the payment service user to notify, without undue delay, the provider of any theft or loss of a payment instrument and thus to reduce the risk of unauthorised payment transactions, the user should be liable only for a very limited amount, unless the payment service user has acted fraudulently or with gross negligence. In this context an amount of EUR 50 seems to be adequate in order to ensure a harmonized and a high level user protection within the Union. Moreover, once users have notified a payment service provider that their payment instrument may have been compromised, the users should not be required to cover any further losses stemming from unauthorised use of that instrument. This Directive should be without prejudice to the payment service providers' responsibility for technical security of their own products. (54) In the case of unauthorized payment transactions the payer should , within one working day, be refunded the amount of the respective transaction. In order to prevent the payer from any disadvantages, the credit value date of the refund should not be later than the date when the respective amount has been debited . Where this is no longer technically possible, the payer should also be compensated for loss of interest . In order to provide an incentive for the payment service user to notify, without undue delay, the provider of any theft or loss of a payment instrument and thus to reduce the risk of unauthorised payment transactions, the user should be liable only for a very limited amount, unless the payment service user has acted fraudulently or with gross negligence. In this context an amount of EUR 50 seems to be adequate in order to ensure a harmonized and a high level user protection within the Union. Moreover, once users have notified a payment service provider that their payment instrument may have been compromised, the users should not be required to cover any further losses stemming from unauthorised use of that instrument. This Directive should be without prejudice to the payment service providers' responsibility for technical security of their own products.

Amendment 31

Proposal for a directive

Recital 57

Text proposed by the Commission Amendment (57) This Directive should lay down rules for a refund to protect the consumer when the executed payment transaction exceeds the amount which could reasonably have been expected. In order to prevent a financial disadvantage for the payer, it needs to be ensured that the credit value date of any refund is no later than the date when the respective amount has been debited. In the case of direct debits payment service providers should be able to provide even more favourable terms to their customers, who should have an unconditional right to a refund of any disputed payment transactions. However, this unconditional refund right which ensures the highest level of consumer protection is not justified in cases where the merchant has already fulfilled the contract and the corresponding good or service has already been consumed. In cases where the user makes a claim for the refund of a payment transaction refund rights should affect neither the liability of the payer vis-à-vis the payee from the underlying relationship, e.g. for goods or services ordered, consumed or legitimately charged, nor the users rights with regard to revocation of a payment order. (57) This Directive should lay down rules for a refund to protect the consumer when the executed payment transaction exceeds the amount which could reasonably have been expected. In order to prevent a financial disadvantage for the payer, it needs to be ensured that the credit value date of any refund is no later than the date when the respective amount has been debited . Where this is no longer technically possible, the payer should also be compensated for loss of interest . In the case of direct debits payment service providers should be able to provide even more favourable terms to their customers, who should have an unconditional right to a refund of any disputed payment transactions. In cases where the user makes a claim for the refund of a payment transaction refund rights should affect neither the liability of the payer vis-à-vis the payee from the underlying relationship, e.g. for goods or services ordered, consumed or legitimately charged, nor the users rights with regard to revocation of a payment order.

Amendment 32

Proposal for a directive

Recital 63

Text proposed by the Commission Amendment (63) Different national practices concerning charging for the use of a given payment instrument (hereinafter ‘surcharging’) have led to extreme heterogeneity of the Union’s payments market and become a source of confusion for consumers, in particular in the e-commerce and cross-border context. Merchants located in Member States where surcharging is allowed offer products and services in Member States where it is prohibited and in this case still surcharge the consumer. Moreover, a strong rationale for revision of surcharging practices is supported by the fact that Regulation (EU) No xxx/yyyy establishes rules for multilateral interchange fees for card-based payments. As interchange fees are the main element making most card payments expensive and surcharging is in practice limited to card-based payments, the rules on interchange fees should be accompanied by a revision of surcharging rules. In order to promote cost transparency and the use of the most efficient payment instruments, Member States and payment service providers should not prevent the payee from requesting a charge from the payer for using a specific payment instrument, duly taking into account the provisions set out in Directive 2011/83/EU. However, the right of the payee to request a surcharge should only apply to those payment instruments for which interchange fees are not regulated. This should act as a steering mechanism towards the cheapest means of payments . (63) Different national practices concerning charging for the use of a given payment instrument (hereinafter ‘surcharging’) have led to extreme heterogeneity of the Union’s payments market and become a source of confusion for consumers, in particular in the e-commerce and cross-border context. Merchants located in Member States where surcharging is allowed offer products and services in Member States where it is prohibited and in this case still surcharge the consumer. There are also many examples of merchants having surcharged consumers at levels much higher than the cost borne by the merchant for the use of a specific payment instrument. Moreover, a strong rationale for revision of surcharging practices is supported by the fact that Regulation (EU) No xxx/yyyy establishes rules for multilateral interchange fees for card-based payments. As interchange fees are the main element making most card payments expensive and surcharging is in practice limited to card-based payments, the rules on interchange fees should be accompanied by a revision of surcharging rules. In order to enhance the functioning of the Union’s payment market, to reduce the confusion for consumers and to end the practice of excessive surcharging, Member States should ban surcharging by consistently preventing payees from requesting a charge from the payer for using a specific payment instrument .

Amendment 33

Proposal for a directive

Recital 66

Text proposed by the Commission Amendment (66) It is essential for payment service users to know the real costs and charges of payment services in order to make their choice. Accordingly, the use of non-transparent pricing methods should not be allowed, since it is commonly accepted that those methods make it extremely difficult for users to establish the real price of the payment service. Specifically, the use of value dating to the disadvantage of the user should not be permitted. (66) In order to strengthen the trust of consumers in a harmonised payment market it is essential for payment service users to know the real costs and charges of payment services in order to make their choice. Accordingly, the use of non-transparent pricing methods should not be allowed, since it is commonly accepted that those methods make it extremely difficult for users to establish the real price of the payment service. Specifically, the use of value dating to the disadvantage of the user should not be permitted.

Amendment 34

Proposal for a directive

Recital 68

Text proposed by the Commission Amendment (68) The payer’s payment service provider should assume liability for correct payment execution, including, in particular the full amount of the payment transaction and execution time, and full responsibility for any failure by other parties in the payment chain up to the account of the payee. As a result of that liability the payment service provider of the payer should, where the full amount is not or only late credited to the payee’s payment service provider, correct the payment transaction or without undue delay refund to the payer the relevant amount of that transaction, without prejudice to any other claims which may be made in accordance with national law. Due to the payment service provider’s liability, the payer or payee should not be burdened with any costs related to the incorrect payment. In case of non-execution, defective or late execution of payment transactions, Member States should ensure that the value date of corrective payments of payment service providers is always the same as the value date in case of correct execution. (68) The payer’s payment service provider , being the account servicing payment service provider or, where involved, the TPP, should assume liability for correct payment execution, including, in particular the full amount of the payment transaction and execution time, and full responsibility for any failure by other parties in the payment chain up to the account of the payee. As a result of that liability the payment service provider of the payer should, where the full amount is not or only late credited to the payee’s payment service provider, correct the payment transaction or without undue delay refund to the payer the same day as the payment service provider became aware of the error, the relevant amount of that transaction, without prejudice to any other claims which may be made in accordance with national law. Due to the payment service provider’s liability, the payer or payee should not be burdened with any costs related to the incorrect payment. In case of non-execution, defective or late execution of payment transactions, Member States should ensure that the value date of corrective payments of payment service providers is always the same as the value date in case of correct execution. Opponents of unconditional refund stress a risk of abuse by consumers. There is no evidence of abuse of that right from countries where consumers enjoy an unconditional refund. Any abuse could be penalised as renewed payment claim by the payee, extra costs paid by the party which has caused that R-transaction, the consumer being blacklisted or banned to use the service by cancellation of the underlying contract, and a recall of a payment would not relieve the duty to pay for the consumed goods.

Amendment 35

Proposal for a directive

Recital 71

Text proposed by the Commission Amendment (71) In order to facilitate effective fraud prevention and combat payment fraud across the Union, provision should be made for the efficient exchange of data between payment service providers who should be allowed to collect, process and exchange personal data relating to persons involved in payment fraud . Directive 95/46/EC of the European Parliament and of the Council (37), the national rules which transpose Directive 95/46/EC and Regulation (EC) No 45/2001 of the European Parliament and of the Council (38) are applicable to the processing of personal data for the purposes of this Directive. (71) Provision of payment services may entail processing of personal data. Directive 95/46/EC of the European Parliament and of the Council (37), the national rules which transpose Directive 95/46/EC and Regulation (EC) No 45/2001 of the European Parliament and of the Council (38) are applicable to the processing of personal data for the purposes of this Directive.

Amendment 36

Proposal for a directive

Recital 72 a (new)

Text proposed by the Commission Amendment (72a) The security incidents reporting obligations are without prejudice to other incident reporting obligations laid down in other legislative acts, in particular the personal data breaches requirements laid down in Directive 2002/58/EC, in Regulation (EU) No …/… [General Data Protection Regulation] and in the security incidents notification requirements planned under Directive …/…/EU [Directive on Network and Information Security]).

Amendment 37

Proposal for a directive

Recital 74

Text proposed by the Commission Amendment (74) Without prejudice to the right of customers to bring action in the courts, Member States should ensure an easily accessible and cost-sensitive out-of-court resolution of conflicts between payment service providers and consumers arising from the rights and obligations set out in this Directive. Regulation (EC) No 593/2008 of the European Parliament and of the Council (40) provides that the protection afforded to consumers by the mandatory rules of the law of the country in which they have their habitual residence may not be undermined by any contractual terms on law applicable. With regard to establishing an efficient and effective dispute resolution procedure, Member States should ensure that payment service providers put in place an effective consumer complaint procedure that can be followed by their consumers before the dispute is referred to be resolved in an out-of-court procedure or before court. The complaints procedure should contain short and clearly defined timeframes within which the payment service provider should reply to a complaint. (74) Without prejudice to the right of customers to bring action in the courts, Member States should ensure that easily accessible , independent, impartial, transparent and effective out-of-court procedures are established and maintained for the resolution of disputes between payment service providers and payment service users arising from the rights and obligations set out in this Directive. Regulation (EC) No 593/2008 of the European Parliament and of the Council (40) provides that the protection afforded to consumers by the mandatory rules of the law of the country in which they have their habitual residence may not be undermined by any contractual terms on law applicable. With regard to establishing an efficient and effective dispute resolution procedure, Member States should ensure that payment service providers put in place an effective complaint procedure that can be followed by their payment service users before the dispute is referred to be resolved in an out-of-court procedure or before court. The complaints procedure should contain short and clearly defined timeframes within which the payment service provider should reply to a complaint.

Amendment 38

Proposal for a directive

Recital 74 a (new)

Text proposed by the Commission Amendment (74a) In the light of the ECB's commitment to establish and chair the ERPB and of the Commission's commitment to participate actively in the ERPB, the Commission should ensure that SEPA governance is strengthened without undue delay after entry into force of this Directive. It should ensure that the Union method is applied where possible and, at the same time, that ownership by stakeholders, on the supply and on the demand side is sought through active involvement, consultation and full transparency. In particular, payment service providers and users should be represented on the same footing, ensuring active involvement of stakeholders, contributing to sufficient communication of the SEPA process to end-users and monitoring the implementation of the SEPA process.

Amendment 39

Proposal for a directive

Recital 80

Text proposed by the Commission Amendment (80) In order to ensure consistent application of this Directive, the Commission should be able to rely on the expertise and support of EBA, which should have the task to elaborate guidelines and prepare regulatory technical standards on security aspects regarding payment services, and on the cooperation between Member States in the context of the provision of services and establishment of authorised payment institutions in other Member States. The Commission should be empowered to adopt those regulatory technical standards. These specific tasks are fully in line with the role and responsibilities of EBA defined in Regulation (EU) No 1093/2010, under which the EBA has been set up. (80) In order to ensure consistent application of this Directive, the Commission should be able to rely on the expertise and support of EBA, which should have the task to prepare implementing technical standards on security aspects regarding payment services, and on the cooperation between Member States in the context of the provision of services and establishment of authorised payment institutions in other Member States. Where those implementing technical standards concern security aspects of payments, EBA shall also take account of the recommendations adopted by the European Forum on the Security of Retail Payments (SecurePay Forum) regarding security of internet payments and payment account access services. When fulfilling those requirements EBA should consult the advisory panel referred to in Recital 29. The Commission should be empowered to adopt those implementing technical standards. These specific tasks are fully in line with the role and responsibilities of EBA defined in Regulation (EU) No 1093/2010, under which the EBA has been set up.

Amendment 40

Proposal for a directive

Recital 80 a (new)

Text proposed by the Commission Amendment (80a) In order for payment services to work smoothly and for the wider SEPA project to achieve its full potential, it is essential that all stakeholders and especially users, including consumers, are closely involved and can play a full role. While the establishment of the SEPA Governance Body represents a step forward to the governance of SEPA and further payment services, due to its improved representation of stakeholders, the decision-making on payment services is still biased towards the supply side and in particular European banks through the European Payments Council (EPC). Therefore, it is crucial that the Commission review, inter alia, the composition of the EPC, the interaction between the EPC and an overarching governance structure, such as the EPA Council, and the role of this overarching structure. If the Commission's review confirms the need for further initiatives to improve SEPA Governance, the Commission should, where appropriate, submit a legislative proposal.

Amendment 41

Proposal for a directive

Recital 83 a (new)

Text proposed by the Commission Amendment (83a) The principles of mutual recognition and of home Member State supervision require that the Member States’ competent authorities should withdraw or refuse to grant authorisation where factors such as the content of programmes of operations, the geographical distribution or the activities actually carried on indicate clearly that a payment institution has opted for the legal system of one Member State for the purpose of evading the stricter standards in force in another Member State within the territory of which it intends to carry on or does carry on the greater part of its activities. A payment institution should be authorised in the Member State in which it has its registered office or, if under its national law it has no registered office, its head office. In addition, Member States should require that a payment institutions head office must always be situated in its home Member State and that it actually operates there.

Amendment 42

Proposal for a directive

Article 2 — paragraph 1 — subparagraph 1 a (new)

Text proposed by the Commission Amendment The Commission shall review the application of this paragraph. By … (*1) , it shall, on the basis of that review, present a legislative proposal, if appropriate, extend the application of provisions of Title IV other than Article 78 to payment transactions where only one of the payment service providers is located within the Union in respect of those parts of the payments transaction which are carried out in the Union where technically feasible.

Amendment 43

Proposal for a directive

Article 3 — point d

Text proposed by the Commission Amendment (d) payment transactions consisting of the non-professional cash collection and delivery within the framework of a non-profit or charitable activity; (d) payment transactions consisting of not-for-profit collection and processing of donations within the framework of a charitable activity conducted by an authorised organisation ;

Amendment 44

Proposal for a directive

Article 3 — point j

Text proposed by the Commission Amendment (j) services provided by technical service providers, which support the provision of payment services, without them entering at any time into possession of the funds to be transferred, including processing and storage of data, trust and privacy protection services, data and entity authentication, information technology (IT) and communication network provision, provision and maintenance of terminals and devices used for payment services, with the exclusion of payment initiation services and account information services; (j) services provided by technical service providers, which support the provision of payment services, without them entering at any time into possession of the funds to be transferred, including processing and storage of data, trust and privacy protection services, data and entity authentication, information technology (IT) and communication network and secure channels provision, provision and maintenance of terminals and devices used for payment services, with the exclusion of payment initiation services and account information services;

Amendment 45

Proposal for a directive

Article 3 — point k

Text proposed by the Commission Amendment (k) services based on specific instruments that are designed to address precise needs that can be used only in a limited way, because they allow the specific instrument holder to acquire goods or services only in in the premises of the issuer or within a limited network of service providers under direct commercial agreement with a professional issuer or because they can be used only to acquire a limited range of goods or services; (k) services based on specific instruments that are designed to address precise needs that can be used only in a limited way, because they allow the specific instrument holder to acquire goods or services of only one issuer or within a limited network of service providers under direct commercial agreement with an issuer or because they can be used only to acquire a narrow range of goods or services;

Amendment 46

Proposal for a directive

Article 3 — point k a (new)

Text proposed by the Commission Amendment (ka) an instrument valid only in a single Member State and regulated by a specific social or tax framework, provided on request of an enterprise or a public entity, carrying a right for an individual to receive goods or services from suppliers having a commercial agreement with the issuer and which cannot be exchanged for money;

Amendment 47

Proposal for a directive

Article 3 — point l

Text proposed by the Commission Amendment (l) payment transactions carried out by a provider of electronic communication networks or services where the transaction is provided for a subscriber to the network or service and for purchase of digital content as ancillary services to electronic communications services, regardless of the device used for the purchase or consumption of the content, provided that the value of any single payment transaction does not exceed EUR 50 and the cumulative value of payment transactions does not exceed EUR 200 in any billing month; (l) payment transactions carried out in an intermediary capacity by a provider of electronic communication networks or services and payment transactions that are ancillary to the core business of the provider where the transaction is provided for a subscriber to the network or service and for purchase of digital content or services, regardless of the device used for the purchase or consumption of the digital content or service , provided that the value of any single payment transaction does not exceed EUR 20 and the cumulative value of payment transactions does not exceed EUR 100 in any calendar month;

Amendment 48

Proposal for a directive

Article 4 — point 12

Text proposed by the Commission Amendment 12. ‘payment service user’ means a natural or legal person making use of a payment service in the capacity of either payer or payee, or both; 12. ‘payment service user’ means a natural or legal person making use of a payment service in the capacity of payer, payee, or both , but excluding a third-party payment service provider in its specific capacity of acting on behalf of another payment user ;

Amendment 49

Proposal for a directive

Article 4 — point 18

Text proposed by the Commission Amendment 18. ‘payment order’ means any instruction by a payer or payee to his payment service provider requesting the execution of a payment transaction; 18. ‘payment order’ means any instruction by a payer or payee to his payment service provider , whether initiated directly or via a third-party payment service provider, requesting the execution of a payment transaction;

Amendment 50

Proposal for a directive

Article 4 — point 21

Text proposed by the Commission Amendment 21. ‘authentication’ means a procedure which allows the payment service provider to verify the identity of a user of a specific payment instrument, including the use of its personalised security features or the checking of personalised identity documents; 21. ‘authentication’ means procedures which allow the payment service provider to verify the validity of the use of a specific payment instrument, including the use of the user’s personalised security credentials or the checking of personalised identity documents , or to identify an interacting third-party payment service provider ;

Amendment 51

Proposal for a directive

Article 4 — point 22

Text proposed by the Commission Amendment 22. ‘strong customer authentication’ means a procedure for the validation of the identification of a natural or legal person based on the use of two or more elements categorised as knowledge, possession and inherence that are independent, in that the breach of one does not compromise the reliability of the others and is designed in such a way as to protect the confidentiality of the authentication data. 22. ‘strong customer authentication’ means a procedure to verify the validity of a payment instrument based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and inherence (something the user is) that are independent, in that the breach of one does not compromise the reliability of the others and is designed in such a way as to protect the confidentiality of the authentication data.

Amendment 52

Proposal for a directive

Article 4 — point 26

Text proposed by the Commission Amendment 26. ‘payment instrument’ means any personalised device(s) and/or set of procedures agreed between the payment service user and the payment service provider and used in order to initiate a payment order; 26. ‘payment instrument’ means any personalised device(s) and/or set of procedures agreed between the payment service user and the payment service provider and used by the payment service user in order to initiate a payment order;

Amendment 53

Proposal for a directive

Article 4 — point 32

Text proposed by the Commission Amendment 32. ‘payment initiation service’ means a payment service enabling access to a payment account provided by a third party payment service provider , where the payer can be actively involved in the payment initiation or the third party payment service provider’s software, or where payment instruments can be used by the payer or the payee to transmit the payer’s credentials to the account servicing payment service provider; 32. ‘payment initiation service’ means a payment service enabling access to a payment account where a payment transaction is initiated by a third party payment service provider at the request of the payer , from a payment account held by the payer with an account servicing payment service provider;

Amendment 54

Proposal for a directive

Article 4 — point 33

Text proposed by the Commission Amendment 33. ‘account information service’ means a payment service where consolidated and user-friendly information is provided to a payment service user on one or several payment accounts held by the payment service user with one or several account servicing payment service providers; 33. ‘account information service’ means a service provided by a third-party payment service provider at the request of the payment service user to provide consolidated information on one or several payment accounts held by the payment service user, with one or several payment service providers;

Amendment 55

Proposal for a directive

Article 4 — point 38 a (new)

Text proposed by the Commission Amendment 38a. ‘personalised security credentials’ means information used for the validation of the identity of a natural or legal person;

Amendment 56

Proposal for a directive

Article 4 — point 38 b (new)

Text proposed by the Commission Amendment 38b. ‘third-party payment instrument issuer’ means a non-account servicing payment service provider pursuing business activities referred to in point (3) or (5) of Annex I;

Amendment 57

Proposal for a directive

Article 4 — point 38 c (new)

Text proposed by the Commission Amendment 38c. ‘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;

Amendment 58

Proposal for a directive

Article 4 — point 38 d (new)

Text proposed by the Commission Amendment 38d. ‘sensitive payment data’ means data which could be used to carry out fraud, excluding the name of the account owner and the account number, including data enabling a payment order to be initiated data used for authentication data used for ordering payment instruments or authentication tools to be sent to customers, and data, parameters and software which, if modified, may affect the legitimate party's ability to verify payment transactions, authorise e-mandates or control the account;

Amendment 59

Proposal for a directive

Article 4 — point 38 e (new)

Text proposed by the Commission Amendment 38e. ‘acquiring of payment transaction’ means a payment service provided, directly or indirectly, by a payment service provider contracting with a payee to accept and process the payee’s payment transactions initiated by a payer’s payment instrument, which results in a transfer of funds to the payee; the service could include providing authentication, authorisation, and other services related to the management of financial flows to the payee regardless of whether the payment service provider holds the funds on behalf of the payee.

Amendment 60

Proposal for a directive

Article 5 — paragraph 1 — point g

Text proposed by the Commission Amendment (g) a description of the process in place to monitor, track and restrict access to sensitive payment data , and logical and physical critical resources ; (g) a description of the process in place to monitor, track and restrict access to sensitive payment data;

Amendment 61

Proposal for a directive

Article 5 — paragraph 1 — point k

Text proposed by the Commission Amendment (k) a description of the internal control mechanisms which the applicant has established in order to comply with obligations in relation to money laundering and terrorist financing under Directive 2005/60/EC of the European Parliament and of the Council (45) and Regulation (EC) No 1781/2006 of the European Parliament and of the Council (46); (k) for payment institutions subject to the obligations in relation to money laundering and terrorist financing under Directive 2005/60/EC of the European Parliament and of the Council (45) and Regulation (EC) No 1781/2006 of the European Parliament and of the Council (46) a description of the internal control mechanisms which the applicant has established in order to comply with those obligations ;

Amendment 62

Proposal for a directive

Article 5 — paragraph 3 a — subparagraph 1 (new)

Text proposed by the Commission Amendment 3a. EBA shall, after consulting an advisory panel set up in accordance with Article 41 of Regulation (EU) No 1093/2010, which represents all stakeholders, including those operating outside the banking industry, develop draft regulatory technical standards specifying the information to be provided to the competent authorities in the application for the authorisation of payment institutions, including the requirements laid down in points (a), (b), (c), (e) and (g) to (j) of paragraph 1.

Amendment 63

Proposal for a directive

Article 5 — paragraph 3 a — subparagraph 2 (new)

Text proposed by the Commission Amendment EBA shall submit those draft regulatory technical standards to the Commission by …

Amendment 64

Proposal for a directive

Article 5 — paragraph 3 a — subparagraph 3 (new)

Text proposed by the Commission Amendment The Commission shall adopt the draft regulatory standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Amendment 65

Proposal for a directive

Article 9 — paragraph 1 — introductory part

Text proposed by the Commission Amendment 1. The Member States or competent authorities shall require a payment institution which provides any payment services and, insofar as it at the same time is engaged in other business activities referred to in Article 17(1)(c) to safeguard all funds which have been received from the payment service users or through another payment service provider for the execution of payment transactions, in either of the following ways: 1. The Member States or competent authorities shall require a payment institution which provides any payment service listed in Annex I or carries out a business activity referred to in Article 17(1)(c) to safeguard all funds which have been received from the payment service users or through another payment service provider for the execution of payment transactions, in either of the following ways:

Amendment 66

Proposal for a directive

Article 9 — paragraph 1 — point a

Text proposed by the Commission Amendment (a) funds shall not be commingled at any time with the funds of any natural or legal person other than payment service users on whose behalf the funds are held and, where they are still held by the payment institution and not yet delivered to the payee or transferred to another payment service provider by the end of the business day following the day when the funds have been received, they shall be deposited in a separate account in a credit institution or invested in secure, liquid low-risk assets as defined by the competent authorities of the home Member State; and they shall be insulated in accordance with national law in the interest of the payment service users against the claims of other creditors of the payment institution, in particular in the event of insolvency; (a) funds shall not be commingled at any time with the funds of any natural or legal person other than payment service users on whose behalf the funds are held and, where they are still held by the payment institution and not yet delivered to the payee or transferred to another payment service provider by the end of the business day following the day when the funds have been received, they shall thereafter be deposited in a separate account in a credit institution or invested in secure, liquid low-risk assets as defined by the competent authorities of the home Member State; and they shall be insulated in accordance with national law in the interest of the payment service users against the claims of other creditors of the payment institution, in particular in the event of insolvency;

Amendment 67

Proposal for a directive

Article 10 — paragraph 3

Text proposed by the Commission Amendment 3. A payment institution which under the national law of its home Member State is required to have a registered office, shall have its head office in the same Member State as its registered office. 3. A payment institution which under the national law of its home Member State is required to have a registered office, shall have its head office in the same Member State as its registered office and in which it actually carries out its business activities .

Amendment 68

Proposal for a directive

Article 12 — paragraph 1 — introductory part

Text proposed by the Commission Amendment 1. The competent authorities may withdraw an authorisation issued to a payment institution only where the institution falls within the following cases: 1. The competent authorities may withdraw an authorisation issued to a payment institution only where the institution falls within any of the following cases:

Amendment 69

Proposal for a directive

Article 12 — paragraph 1 — point d

Text proposed by the Commission Amendment (d) would constitute a threat to the stability of or the trust in the payment system by continuing its payment services business; (d) would constitute a threat to the stability of or the trust in the payment system by continuing its payment services business; or

Amendment 70

Proposal for a directive

Article 13 — paragraph 2 a (new)

Text proposed by the Commission Amendment The register shall also identify and give reasons for each withdrawal of authorisation by the competent authorities.

Amendment 71

Proposal for a directive

Article 14 — paragraph 4 — subparagraph 1

Text proposed by the Commission Amendment 4. EBA shall develop draft regulatory technical standards setting technical requirements regarding access to the information contained in the public registers referred to in Article 13 at the Union level. EBA shall submit those draft regulatory technical standards to the Commission by […within two years of the date of entry into force of this Directive] . 4. EBA shall develop draft regulatory technical standards setting technical requirements regarding access to the information contained in the public registers referred to in Article 13 at the Union level after consulting the advisory panel referred to in Article 5(3a) . EBA shall submit those draft regulatory technical standards to the Commission by … (*2).

Amendment 72

Proposal for a directive

Article 17 — paragraph 2

Text proposed by the Commission Amendment 2. When payment institutions engage in the provision of one or more of the payment services, they may hold only payment accounts used exclusively for payment transactions. Member States shall ensure that access to those payment accounts is proportionate. 2. When payment institutions engage in the provision of one or more of the payment services, they may hold payment accounts used exclusively for payment transactions. Member States shall ensure that payment institutions are granted access to credit institutions' payment and deposit account services, on an objective, non-discriminatory and proportionate basis. Such access shall be extensive enough to allow payment institutions to provide payment services in an unobstructed and efficient manner.

Amendment 73

Proposal for a directive

Article 21 — paragraph 3

Text proposed by the Commission Amendment 3. Where there is more than one competent authority for matters covered by this Title on its territory, Member States shall ensure that those authorities cooperate closely so that they can discharge their respective duties effectively. The same applies in cases where the authorities competent for matters covered by this Title are not the competent authorities responsible for the supervision of credit institutions. 3. Where the authority competent for matters covered by this Title is not the competent authority responsible for the supervision of credit institutions Member States shall ensure that those authorities cooperate closely so that they can discharge their respective duties effectively.

Amendment 74

Proposal for a directive

Article 22 — paragraph 1 — subparagraph 2 — point a

Text proposed by the Commission Amendment (a) to require the payment institution to provide any information needed to monitor compliance; (a) to require the payment institution to provide any information needed to monitor compliance by means of formal decision, specifying the legal basis and the purpose of the request, what information is required and the time limit by which the information should be provided ;

Amendment 75

Proposal for a directive

Article 22 — paragraph 2 a (new)

Text proposed by the Commission Amendment 2a. Any request for information or documents made by competent authorities of the Member States shall be made on the basis of a decision that specifies its legal basis, the purpose of the request, details of the information or documents required, the time by which they are required and the period for which the information or documents are to be retained.

Amendment 76

Proposal for a directive

Article 25 — paragraph 1

Text proposed by the Commission Amendment 1. The competent authorities of the different Member States shall cooperate with each other and, where appropriate, with the European Central Bank and the national central banks of the Member States, EBA and other relevant competent authorities designated under Union or national legislation applicable to payment service providers. 1. The competent authorities of the different Member States shall cooperate with each other and, where appropriate, with the European Central Bank and the national central banks of the Member States, EBA and other relevant competent authorities designated under Union or national legislation applicable to payment service providers. Where those authorities are processing personal data, they should specify for which precise purpose and mention the appropriate legal basis in Union law.

Amendment 77

Proposal for a directive

Article 25 — paragraph 2 — point d a (new)

Text proposed by the Commission Amendment (da) Europol, in its capacity as the Union's law enforcement agency and responsible for assisting and coordinating a common approach among competent police authorities of the Member States in combating organised crime, other serious crime and terrorism including euro counterfeiting, forgery of money and other means of payment.

Amendment 78

Proposal for a directive

Article 25 — paragraph 2 a (new)

Text proposed by the Commission Amendment 2a. EBA shall have the mandate to start and promote binding mediation to settle disputes between competent authorities arising out of the exchange of information.

Amendment 79

Proposal for a directive

Article 26 — paragraph 1 a (new)

Text proposed by the Commission Amendment 1a. Member States shall not impose any additional requirements on a Union payment institution wishing to provide payment services in a host Member State which are not applicable to payment institutions authorised by the host Member State.

Amendment 80

Proposal for a directive

Article 26 — paragraph 3

Text proposed by the Commission Amendment 3. The competent authorities shall provide each other with all essential and/or relevant information, in particular in the case of infringements or suspected infringements by an agent, a branch or an entity to which activities are outsourced. In this regard, the competent authorities shall communicate, upon request, all relevant information and, on their own initiative, all essential information. 3. The competent authorities shall provide each other with all essential and/or relevant information, in particular in the case of infringements or suspected infringements by an agent, a branch or an entity to which activities are outsourced. In this regard, the competent authorities shall communicate, upon request, all relevant information and, on their own initiative, all essential information. In the case of retention of personal data, the storage of personal data by competent authorities shall not exceed ten years. In any event, the storage of personal data shall comply with Directive 95/46/EC.

Amendment 81

Proposal for a directive

Article 26 — paragraph 5

Text proposed by the Commission Amendment 5. EBA shall issue guidelines addressed to competent authorities in accordance with Article 16 of Regulation (EU) No 1093/2010 on the elements to be taken into consideration when deciding whether the activity the payment institution notified intends to provide in another Member State under paragraph 1 of this Article would amount to the exercise of the right of establishment or freedom to provide services. Those guidelines shall be issued by […within two years of the date of entry into force of this Directive] . 5. EBA shall issue guidelines addressed to competent authorities in accordance with Article 16 of Regulation (EU) No 1093/2010 on the elements to be taken into consideration when deciding whether the activity the payment institution notified intends to provide in another Member State under paragraph 1 of this Article would amount to the exercise of the right of establishment or freedom to provide services. Those guidelines shall be issued by … (*3).

Amendment 82

Proposal for a directive

Article 27 — paragraph 1 — point a

Text proposed by the Commission Amendment (a) the average of the preceding 12 months’ total amount of payment transactions executed by the person concerned, including any agent for which it assumes full responsibility, does not exceed EUR 1 million per month. That requirement shall be assessed on the projected total amount of payment transactions in its business plan, unless an adjustment to that plan is required by the competent authorities; (a) the average of the preceding 12 months’ total amount of payment transactions executed or initiated by the person concerned, including any agent for which it assumes full responsibility, does not exceed EUR 1 million per month. That requirement shall be assessed on the projected total amount of payment transactions in its business plan, unless an adjustment to that plan is required by the competent authorities;

Amendment 83

Proposal for a directive

Article 31 — paragraph 2 a (new)

Text proposed by the Commission Amendment 2a. Member States shall ensure that individuals are provided with appropriate information about the processing of personal data in accordance with national provisions transposing Articles 10 and 11 of Directive 95/46/EC and with Article 11 of Regulation (EC) No 45/2001.

Amendment 84

Proposal for a directive

Article 33 — paragraph 3

Text proposed by the Commission Amendment 3. Where the payment service provider may impose charges for information in accordance with paragraph 2, they shall be appropriate and in line with the payment service provider’s actual costs. 3. Where the payment service provider may impose charges for information in accordance with paragraph 2, they shall be reasonable and in line with the payment service provider’s actual costs.

Amendment 85

Proposal for a directive

Article 33 — paragraph 3 a (new)

Text proposed by the Commission Amendment 3a. Member States shall ensure that consumers who switch their payment account, upon request can receive the transactions carried out on the former payment account recorded on a durable medium from the transferring payment service provider for a reasonable fee.

Amendment 86

Proposal for a directive

Article 34

Text proposed by the Commission Amendment Member States may stipulate that the burden of proof shall lie with the payment service provider to prove that it has complied with the information requirements set out in this Title. Member States shall stipulate that the burden of proof shall lie with the payment service provider to prove that it has complied with the information requirements set out in this Title.

Amendment 87

Proposal for a directive

Article 37 — paragraph 1

Text proposed by the Commission Amendment 1. Member States shall require that before the payment service user is bound by any single payment service contract or offer, the payment service provider, in an easily accessible manner, makes available to the payment service user the information and conditions specified in Article 38. At the payment service user's request, the payment service provider shall provide the information and conditions on paper or on another durable medium. The information and conditions shall be given in easily understandable words and in a clear and comprehensible form, in an official language of the Member State where the payment service is offered or in any other language agreed between the parties. 1. Member States shall require that before the payment service user is bound by any single payment service contract or offer, the payment service provider, in an easily accessible manner, makes available to the payment service user the information and conditions specified in Article 38 with regard to its own services . At the payment service user's request, the payment service provider shall provide the information and conditions on paper or on another durable medium. The information and conditions shall be given in easily understandable words and in a clear and comprehensible form, in an official language of the Member State where the payment service is offered or in any other language agreed between the parties.

Amendment 88

Proposal for a directive

Article 37 — paragraph 2 a (new)

Text proposed by the Commission Amendment 2a. Member States shall require that, where a payment order is initiated by a third-party payment service provider, it makes available to the payment service user the information and conditions referred to in Article 38. The information and conditions shall be given in a clear and understandable form and in an official language of the Member State where the payment service is offered or in any other language agreed between the parties.

Amendment 89

Proposal for a directive

Article 38 — paragraph 2

Text proposed by the Commission Amendment 2. Member States shall ensure that for payment initiation services, the third party payment service provider shall provide the payer with information about the service offered and contact information to the third party payment service provider. 2. Member States shall ensure that for payment initiation services, the third party payment service provider shall , prior to initiation, provide the payer with the following clear and comprehensive information: (a) the contact information and registration number of the third-party payment service provider, and the name of the supervisory authority responsible; (b) where applicable, the maximum time-limit for the payment in