Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (Text with EEA relevance)
Date: 2007-11-13
Institutions: Council of the European Union, European Parliament
Subjects: banking, credit institution, electronic money, financial legislation, intra-EU payment, provision of services, single market

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I

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is obligatory)

DIRECTIVES

DIRECTIVE 2007/64/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 13 November 2007

on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC
and 2006/48/EC and repealing Directive 97/5/EC

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(3)

Having regard to the Treaty establishing the European Commu-
nity, and in particular the first and third sentences of Arti-
cle 47(2) and Article 95 thereof,

Having regard to the proposal from the Commission,

Having consulted the European Economic and Social Committee,

Having regard to the opinion of the European Central Bank (1),

Acting in accordance with the procedure laid down in Article 251
of the Treaty (2),

Whereas:

(1)

It is essential for the establishment of the internal market
that all internal frontiers in the Community be dismantled
so as to enable the free movement of goods, persons,
services and capital. The proper operation of the single
market in payment services is therefore vital. At present,
however, the lack of harmonisation in this area hinders the
operation of that market.

(2) Currently, the payment services markets of the Member
States are organised separately, along national lines and the
legal framework for payment services is fragmented into 27
national legal systems.

(1) OJ C 109, 9.5.2006, p. 10.
(2) Opinion of the European Parliament of 24 April 2007 (not yet
published in the Official Journal) and Council Decision of 15 October
2007.

Several Community acts have already been adopted in this
area, namely Directive 97/5/EC of the European Parliament
and of the Council of 27 January 1997 on cross-border
credit transfers (3) and Regulation (EC) No 2560/2001 of
the European Parliament and of the Council of 19 Decem-
ber 2001 on cross-border payments in euro (4), but these
have not sufficiently remedied this situation any more than
have Commission Recommendation 87/598/EEC of
8 December 1987 on a European Code of Conduct relating
to electronic payment (relations between financial institu-
tions,
and con-
sumers) (5), Commission Recommendation 88/590/EEC of
17 November 1988 concerning payment systems, and in
particular the relationship between cardholder and card
issuer (6), or Commission Recommendation 97/489/EC of
30 July 1997 concerning transactions by electronic
payment instruments and in particular the relationship
between issuer and holder (7). These measures continue to
be insufficient. The co-existence of national provisions and
rise to
an incomplete Community framework gives
confusion and a lack of legal certainty.

establishments,

and service

traders

(4)

It is vital, therefore, to establish at Community level a
modern and coherent
framework for payment
legal
services, whether or not the services are compatible with
the system resulting from the financial sector initiative for a
single euro payments area, which is neutral so as to ensure a
in order to
level playing field for all payment systems,
maintain consumer choice, which should mean a consider-
able step forward in terms of consumer cost, safety and
efficiency, as compared with the present national systems.

(5)

That legal framework should ensure the coordination of
national provisions on prudential requirements, the access
of new payment service providers to the market, informa-
tion requirements, and the respective rights and obligations

(3) OJ L 43, 14.2.1997, p. 25.
(4) OJ L 344, 28.12.2001, p. 13.
(5) OJ L 365, 24.12.1987, p. 72.
(6) OJ L 317, 24.11.1988, p. 55.
(7) OJ L 208, 2.8.1997, p. 52.

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of payment services users and providers. Within that
framework, the provisions of Regulation (EC) No 2560/
2001, which created a single market for euro payments as
far as prices are concerned, should be maintained. The
provisions of Directive 97/5/EC and the recommendations
made in Recommendations 87/598/EEC, 88/590/EEC and
97/489/EC should be integrated in a single act with binding
force.

(6) However, it is not appropriate for that legal framework to
be fully comprehensive. Its application should be confined
to payment service providers whose main activity consists
in the provision of payment services to payment service
users. Nor is it appropriate for it to apply to services where
the transfer of funds from the payer to the payee or their
transport is executed solely in bank notes and coins or
where the transfer is based on a paper cheque, paper-based
bill of exchange, promissory note or other instrument,
paper-based vouchers or cards drawn upon a payment
service provider or other party with a view to placing funds
at the disposal of the payee. Furthermore, a differentiation
should be made in the case of means offered by
telecommunication,
information technology or network
operators to facilitate purchasing of digital goods or
services, such as ring tones, music or digital newspapers,
besides traditional voice services and their distribution to
digital devices. The content of these goods or services may
be produced either by a third party or by the operator, who
may add intrinsic value to them in the form of access,
distribution or search facilities. In the latter case, where the
goods or services are distributed by one of those operators,
or, for technical reasons, by a third party, and where they
can be used only through digital devices, such as mobile
phones or computers, that legal framework should not
apply as the activity of the operator goes beyond a mere
payment transaction. However, it is appropriate for that
legal framework to apply to cases where the operator acts
only as an intermediary who simply arranges for payment
to be made to a third-party supplier.

payment transactions and which should continue to be
subject
to the prudential requirements under Directive
2006/48/EC of the European Parliament and of the Council
of 14 June 2006 relating to the taking up and pursuit of the
business of credit institutions (1), electronic money institu-
tions which issue electronic money that can be used to fund
payment transactions and which should continue to be
subject
to the prudential requirements under Directive
2000/46/EC of the European Parliament and of the Council
of 18 September 2000 on the taking-up, pursuit and
prudential supervision of the business of electronic money
institutions (2), and post office giro institutions which are so
entitled under national law.

(9)

This Directive should lay down rules on the execution of
transactions where the funds are electronic
payment
money, as defined in Article 1(3)(b) of Directive 2000/
46/EC. This Directive should, however, neither regulate
issuance of electronic money nor amend the prudential
regulation of electronic money institutions as provided for
in Directive 2000/46/EC. Therefore, payment institutions
should not be allowed to issue electronic money.

(10) However, in order to remove legal barriers to market entry,
it is necessary to establish a single licence for all providers
of payment services which are not connected to taking
deposits or issuing electronic money.
It is appropriate,
therefore, to introduce a new category of payment service
providers,
the
authorisation, subject to a set of strict and comprehensive
conditions, of legal persons outside the existing categories
to provide payment services throughout the Community.
Thus, the same conditions would apply Community-wide
to such services.

institutions’, by providing for

‘payment

(7) 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 as defined in this Directive, unless the
competent authorities consider the activity to fall under
another payment service listed in the Annex.

(8)

It is necessary to specify the categories of payment service
providers which may legitimately provide payment services
institutions
the Community, namely, credit
throughout
which take deposits from users that can be used to fund

(11) The conditions for granting and maintaining authorisation
as payment institutions should include prudential require-
ments proportionate to the operational and financial risks
faced by such bodies in the course of their business. In this
connection, there is a need for a sound regime of initial
capital combined with ongoing capital which could be
elaborated in a more sophisticated way in due course
depending on the needs of the market. Due to the range of
variety in the payments services area, this Directive should
allow various methods combined with a certain range of
supervisory discretion to ensure that the same risks are
treated the same way for all payment service providers. The
requirements for the payment institutions should reflect the
fact that payment institutions engage in more specialised
that are
and limited activities,
narrower and easier to monitor and control than those
that arise across the broader spectrum of activities of credit

thus generating risks

(1) OJ L 177, 30.6.2006, p. 1. Directive as amended by Commission

Directive 2007/44/EC (OJ L 247, 21.9.2007, p. 1).

(2) OJ L 275, 27.10.2000, p. 39.

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from users

institutions. In particular, payment institutions should be
prohibited from accepting deposits
and
permitted to use funds received from users only for
rendering payment services. Provision should be made for
client
separate from the payment
institution's funds for other business activities. Payment
institutions should also be made subject to effective anti-
money laundering and anti-terrorist
financing require-
ments.

to be kept

funds

ensure equality of treatment, Member States should apply
to payment institutions no requirements other than those
provided for in this Directive. However, all decisions made
by the competent authorities should be contestable before
the courts.
the competent
authorities should be without prejudice to the oversight
of payment systems, which, in line with the fourth indent of
Article 105(2) of the Treaty, is a task to be carried out by
the European System of Central Banks.

the tasks of

In addition,

(12) Payment institutions should draw up their annual and
consolidated accounts in accordance with Council Directive
78/660/EEC of 25 July 1978 on the annual accounts of
certain types of companies (1) and, where applicable,
Council Directive 83/349/EEC of 13 June 1983 on
consolidated accounts (2) and Council Directive 86/635/
EEC of 8 December 1986 on the annual accounts and
consolidated accounts of banks
financial
institutions (3). The annual accounts and consolidated
accounts should be audited, unless the payment institution
is exempted from this obligation under Directive 78/660/
EEC and, where applicable, Directives 83/349/EEC and 86/
635/EEC.

and other

(13) This Directive should regulate the granting of credit by
payment institutions, i.e. the granting of credit lines and the
issuance of credit cards, only where it is closely linked to
payment services. Only if credit is granted in order to
facilitate payment services and such credit is of a short-term
nature and is granted for a period not exceeding twelve
months, including on a revolving basis, is it appropriate to
allow payment institutions to grant such credit with regard
to their cross-border activities, on condition that
is
refinanced using mainly the payment institution's own
funds, as well as other funds from the capital markets, but
not the funds held on behalf of clients for payment services.
The above should be without prejudice to Council Directive
87/102/EEC of 22 December 1986 for the approximation
of the laws, regulations and administrative provisions of the
Member States concerning consumer credit (4) or other
relevant Community or national
legislation regarding
conditions for granting credit to consumers not harmo-
nised by this Directive.

it

(14)

It is necessary for the Member States to designate the
authorities
to
payment institutions, carrying out controls and deciding
on the withdrawal of those authorisations. In order to

responsible for granting authorisations

(1) OJ L 222, 14.8.1978, p. 11. Directive as last amended by Directive
2006/46/EC of the European Parliament and of the Council (OJ
L 224, 16.8.2006, p. 1).

(2) OJ L 193, 18.7.1983, p. 1. Directive as last amended by Directive

2006/99/EC (OJ L 363, 20.12.2006, p. 137).

(3) OJ L 372, 31.12.1986, p. 1. Directive as last amended by Directive

2006/46/EC.

(4) OJ L 42, 12.2.1987, p. 48. Directive as last amended by Directive
98/7/EC of the European Parliament and of the Council (OJ L 101,
1.4.1998, p. 17).

(15) Given the desirability of

registering the identity and
whereabouts of all persons providing remittance services
and of according them all a measure of acceptance,
irrespective of whether they are able to meet the full range
of conditions for authorisation as payment institutions, so
that none are forced into the black economy and bring all
persons providing remittance service within the ambit of
certain minimum legal and regulatory requirements, it is
appropriate and in line with the rationale of Special
Recommendation VI of the Financial Action Task Force on
Money Laundering to provide a mechanism whereby
payment
those
conditions may nevertheless be
treated as payment
institutions. For those purposes, Member States should
enter such persons in the register of payment institutions
the conditions for
while not applying all or part of
authorisation. However,
to make the
possibility of waiver subject to strict requirements relating
to the volume of payment transactions. Payment institu-
tions benefiting from a waiver should have neither the right
of establishment nor the freedom to provide services, nor
should they indirectly exercise those rights when being a
member of a payment system.

service providers unable to meet all

is essential

it

(16)

should, however, be subject

It is essential for any payment service provider to be able to
access the services of technical infrastructures of payment
systems. Such access
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 Community 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. Provision should be made for the non-discrimi-
natory treatment of authorised payment institutions and
credit institutions so that any payment service provider
competing in the internal market is able to use the services
of the technical infrastructures of these payment systems
under the same conditions. It is appropriate to provide for
different treatment for authorised payment service provid-
ers and for those benefiting from a waiver under this
Directive as well as from the waiver under the Article 8 of
the Directive 2000/46/EC, due to the differences in their

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framework.

In any case differences in price
prudential
conditions should be allowed only when this is motivated
by differences in costs induced by the payment service
providers. This should be without prejudice to Member
to limit access to systemically important
States' right
the
systems in accordance with Directive 98/26/EC of
European Parliament and of the Council of 19 May 1998
on settlement finality in payment and securities settlement
systems (1) and without prejudice to the competence of the
European Central Bank and the European System of Central
Banks (ESCB), as laid down in Article 105(2) of the Treaty
and Article 3(1) and Article 22 of the Statute of the ESCB,
concerning access to payment systems.

(17) The provisions of the access to payment systems should not
apply to systems set up and operated by a single payment
service provider. Those payment systems can operate either
in direct competition to payment
systems, or, more
typically,
in a market niche not adequately covered by
payment systems. They typically cover three-party schemes,
such as three party card schemes, payment services offered
by telecommunication providers or money remittance
services where the scheme operator is the payment service
provider to both the payer and payee as well as internal
systems of banking groups.
In order to stimulate the
competition that can be provided by such payment systems
to established mainstream payment systems, it should in
principle not be appropriate to grant third parties access to
these payment systems. Nevertheless, such systems should
always be subject to Community and national competition
rules which may require that access be granted to the
schemes in order to maintain effective competition in
payments markets.

(18) A set of rules should be established in order to ensure
transparency of conditions and information requirements
for payment services.

(19) This Directive should apply neither to payment transactions
made in cash since a single payments market for cash
already exists nor to payment transactions based on paper
cheques since, by their nature, they cannot be processed as
efficiently as other means of payment. Good practice in this
area should, however, be based on the principles set out in
this Directive.

(20) As consumers and enterprises are not in the same position,
they do not need the same level of protection. While it is
important to guarantee consumers' rights by provisions
which cannot be derogated from by contract,
is
reasonable to let enterprises and organisations agree
otherwise. However, Member States
should have the
possibility to provide that micro-enterprises, as defined by
Commission Recommendation 2003/361/EC of 6 May
2003 concerning the definition of micro, small and

it

medium-sized enterprises (2), should be treated in the same
way as consumers. In any case, certain core provisions of
this Directive should always be applicable irrespective of
the status of the user.

(21) 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 shop
around within the EU. 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.

(22) Consumers

should be protected against unfair

and
misleading practices in line with Directive 2005/29/EC of
the European Parliament and the Council of 11 May 2005
concerning unfair business-to-consumer commercial prac-
tices in the Internal Market (3) as well as Directive 2000/31/
EC of the European Parliament and the Council of 8 June
2000 on certain legal aspects of
information society
services, in particular electronic commerce, in the Internal
Market (Directive on electronic commerce) (4) and Directive
2002/65/EC of the European Parliament and the Council of
23 September 2002 concerning the distance marketing of
consumer financial services (5). The additional provisions in
those Directives continue to be applicable. However, the
relationship of
information require-
ments between this Directive and Directive 2002/65/EC
should, in particular, be clarified.

the pre-contractual

(23) The information required should be proportionate to the
needs of users and communicated in a standard manner.
However,
for a single
payment transaction should be different from those of a
the series of
framework contract which provides for
payment transactions.

the information requirements

(24)

In practice, framework contracts and the payment transac-
tions covered by them are far more common and
economically important than single payment transactions.
If
there is a payment account or a specific payment
instrument, a framework contract is required. Therefore, the
requirements for prior information on framework contracts
should be quite comprehensive and information should
always be provided on paper or on another durable
medium, such as printouts by account printers, floppy
disks, CD-ROMs, DVDs and hard drives of personal

(2) OJ L 124, 20.5.2003, p. 36.
(3) OJ L 149, 11.6.2005, p. 22.
(4) OJ L 178, 17.7.2000, p. 1.
(5) OJ L 271, 9.10.2002, p. 16. Directive as amended by Directive

(1) OJ L 166, 11.6.1998, p. 45.

2005/29/EC.

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computers on which electronic mail can be stored, and
Internet sites, as long as such sites are accessible for future
reference for a period of time adequate for the purposes of
information and allow the unchanged reproduction of the
information stored. However, it should be possible for the
payment service provider and the payment service user to
agree in the framework contract on the manner in which
subsequent information on executed payment transactions
is given,
in Internet banking all
that
information on the payment account is made available
online.

instance,

for

(25)

In single payment transactions only the essential informa-
tion should always be given on the payment service
provider's own initiative. As the payer is usually present
when he gives the payment order, it is not necessary to
require that information should in every case be provided
on paper or on another durable medium. The payment
service provider may give information orally over the
counter or make it otherwise easily accessible, for example
by keeping the conditions on a notice board on the
premises. Information should also be given on where other
more detailed information is available (e.g. the address of
the website). However,
if the consumer so requests, the
essential
information should be given on paper or on
another durable medium.

(26) This Directive should provide for the consumer's right to
receive relevant information free of charge before he is
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
him to compare payment service providers' services and
their conditions and in case of any dispute verify his
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.

(27) The way in which the required information is to be given by
the payment service provider to the payment service user
should take into account the needs of the latter as well as
practical technical aspects and cost-efficiency depending on
the situation with regard to the agreement in the respective
payment service contract. Thus,
this Directive should
distinguish between two ways in which information is to
be given by the payment service provider: either the
information should be provided, i.e. actively communicated
by the payment service provider at the appropriate time as
required by this Directive without further prompting by the
payment service user, or the information should be made
available to the payment service user, taking into account
any request he may have for further information. In the
latter case, the payment service user should take some
active steps in order to obtain the information, such as
requesting it explicitly from the payment service provider,
logging into bank account mail box or inserting a bank

card into printer for account statements. For such purposes
the payment service provider should ensure that access to
the information is possible and that the information is
available to the payment service user.

(28)

(29)

In addition, the consumer should receive basic information
on executed payment transactions for no additional charge.
In the case of a single payment transaction the payment
service provider should not charge separately for this
information. Similarly, the subsequent monthly informa-
tion on payment transactions under a framework contract
should be given free of charge. However,
taking into
account the importance of transparency in pricing and
differing customer needs, the parties should be able to agree
on charges for more frequent or additional information. In
order to take into account different national practices,
Member States should be allowed to set rules requiring that
monthly paper-based statements of payment accounts are
always to be given free of charge.

In order to facilitate customer mobility,
it should be
possible for consumers to terminate a framework contract
after the expiry of 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 Community 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.

(30) Low value payment instruments should be a cheap and
easy-to-use alternative in the case of low-priced goods and
services and should not be overburdened by excessive
requirements. The relevant information requirements and
rules on their execution should therefore be limited to
essential
information, taking also into account technical
capabilities that can justifiably be expected from instru-
ments dedicated to low value payments. Despite the lighter
regime payment service users should benefit from adequate
protection considering the limited risks posed by those
payment instruments, especially with regard to prepaid
payment instruments.

(31)

to reduce the risks and consequences of
In order
unauthorised or incorrectly executed payment transactions
the payment service user should inform the payment
service provider as soon as possible about any contestations
concerning allegedly unauthorised or incorrectly executed
payment transactions provided that the payment service
provider has fulfilled his information obligations under this
Directive. If the notification deadline is met by the payment
service user, he should be able to pursue those claims
within the prescription periods pursuant to national law.
This Directive should not affect other claims between
payment service users and payment service providers.

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(32)

In order to provide an incentive for the payment service
user to notify, without undue delay, his 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 limited amount, unless the
payment service user has acted fraudulently or with gross
negligence. Moreover, once a user has notified a payment
service provider that his payment instrument may have
been compromised, the user should not be required to
cover any further losses stemming from unauthorised use
instrument. This Directive should be without
of
prejudice to the payment service providers' responsibility
for technical security of their own products.

that

(33)

In order to assess possible negligence by the payment
service user, account should be taken of all the circum-
stances. The evidence and degree of alleged negligence
should be evaluated according to national law. Contractual
terms and conditions relating to the provision and use of a
payment
the effect of which would be to
increase the burden of proof on the consumer or to reduce
the burden of proof on the issuer should be considered null
and void.

instrument,

(34) However, Member States should be able to establish less
stringent rules than mentioned above in order to maintain
existing levels of consumer protection and promote trust in
the safe usage of electronic payment instruments. The fact
that different payment instruments involve different risks
should be taken into account accordingly thus promoting
the issuance of safer instruments. Member States should be
allowed to reduce or completely waive the payer's liability
except where the payer has acted fraudulently.

(35) Provisions should be made for the allocation of losses in
the case of unauthorised payment transactions. Different
provisions may apply to payment service users who are not
consumers, since such users are normally in a better
position to assess the risk of fraud and take countervailing
measures.

(36) 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. Payment service providers should be able to
provide even more favourable terms to their customers and,
for example, refund 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.

the personal

introduce a point in time at which rights and obligations
take effect, namely, when the payment service provider
receives the payment order, including when he has had the
opportunity to receive it through the means of commu-
nication agreed in the payment service contract, notwith-
standing any prior involvement in the process leading up to
the creation and transmission of the payment order, e.g.
security and availability of funds checks, information on the
use of
identity number or issuance of a
payment promise. Furthermore, the receipt of a payment
order should occur when the payer's payment service
provider receives the payment order to be debited from the
payer's account. The day or moment in time when a payee
transmits to his service provider payment orders for the
collection e.g. of card payment or of direct debits or when
the payee is granted a pre-financing on the related amounts
by his payment service provider (by way of a contingent
credit to his account) should have no relevance in this
respect. Users should be able to rely on the proper
execution of a complete and valid payment order if the
payment service provider has no contractual or statutory
ground for refusal. If the payment service provider refuses a
payment order, the refusal and the reason therefor should
be communicated to the payment service user at the earliest
opportunity subject to the requirements of Community and
national law.

(38)

In view of the speed with which modern fully automated
payment systems process payment
transactions, which
means that after a certain point in time payment orders
cannot be revoked without high manual intervention costs,
it is necessary to specify a clear deadline for payment
revocations. However, depending on the type of
the
payment service and the payment order, the point in time
may be varied by agreement between the parties. Revoca-
tion, in this context, is applicable only to the relationship
between a payment service user and payment service
provider, thus being without prejudice to the irrevocability
and finality of payment transactions in payment systems.

(39) Such irrevocability should not affect a payment service
provider's right or obligation under the laws of some
Member States, based on the payer's framework contract or
national
laws, regulations, administrative provisions or
guidelines, to reimburse the payer with the amount of the
executed payment transaction in the event of a dispute
between the payer and the payee. Such reimbursement
should be considered to be a new payment order. Except for
those cases, legal disputes arising within the relationship
underlying the payment order should be settled only
between the payer and the payee.

(37) For financial planning and the fulfilment of payment
obligations in due time, consumers and enterprises need to
have certainty on the length of time that the execution of a
this Directive should
payment order

takes. Therefore,

(40)

is essential,

It
for the fully integrated straight-through
processing of payments and for legal certainty with respect
to the fulfilment of any underlying obligation between
payment service users, that the full amount transferred by
the payer should be credited to the account of the payee.

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from the

to make deductions

it should not be possible for any of

the
Accordingly,
involved in the execution of payment
intermediaries
transactions
amount
transferred. However, it should be possible for the payee
to enter into an agreement with his payment service
provider under which the latter may deduct his own
charges. Nevertheless, in order to enable the payee to verify
that
subsequent
information provided on the payment transaction should
indicate not only the full amount of funds transferred but
also the amount of any charges.

the amount due

correctly paid,

is

transaction does not

(41) With regard to charges, experience has shown that the
sharing of charges between a payer and a payee is the most
efficient system since it
facilitates the straight-through
processing of payments. Provision should therefore be
made for charges to be levied, in the normal course, directly
on the payer and the payee by their respective payment
service providers. However, that should apply only where
currency
the payment
exchange. The amount of any charges levied may also be
zero as the provisions of this Directive do not affect the
practice whereby the payment service provider does not
charge consumers for crediting their accounts. Similarly,
terms, a payment service
depending on the contract
provider may charge only the payee (merchant) for the
use of the payment service, which has the effect that no
charges are imposed on the payer. The charging of the
payment systems may be in the form of a subscription fee.
The provisions on the amount transferred or any charges
levied have no direct impact on pricing between payment
service providers or any intermediaries.

require

(42)

In order to promote transparency and competition, the
payment service provider should not prevent the payee
from requesting a charge from the payer for using a specific
payment instrument. While the payee should be free to levy
charges for the use of a certain payment
instrument,
Member States may decide whether they forbid or limit any
such practice where, in their view, this may be warranted in
view of abusive pricing or pricing which may have a
negative impact on the use of a certain payment instrument
taking into account the need to encourage competition and
the use of efficient payment instruments.

(43)

In order to improve the efficiency of payments throughout
the Community, all payment orders initiated by the payer
and denominated in euro or the currency of a Member State
outside the euro area, including credit transfers and money
remittances, should be subject to a maximum one-day
execution time. For all other payments, such as payments
initiated by or through a payee, including direct debits and
card payments,
in the absence of an explicit agreement
between the payment service provider and the payer setting
a longer execution time, the same one-day execution time

should apply. The periods above could be extended by an
additional business day,
if a payment order is given on
paper. This allows the continued provision of payment
services for
those consumers who are used to paper
documents only. When a direct debit scheme is used the
the
payee's payment service provider should transmit
collection order within the time limits agreed between
the payee and his payment service provider, enabling
settlement at the agreed due date. In view of the fact that
national payment infrastructures are often highly efficient
and in order to prevent any deterioration in current service
levels, Member States should be allowed to maintain or set
rules
than one
business day, where appropriate.

specifying an execution time shorter

(44) The provisions on execution for the full amount and
execution time should constitute good practice where one
of the service providers is not located in the Community.

(45)

It is essential for payment service users to know the real
costs and charges of payment services in order to make
the use of non-transparent
their choice. Accordingly,
pricing methods
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.

should not be allowed,

since it

(46) The smooth and efficient

functioning of

the payment
system depends on the user being able to rely on the
payment service provider executing the payment transac-
tion correctly and within the agreed time. Usually, the
provider is in the position to assess the risks involved in the
payment transaction. It is the provider that provides the
payments system, makes arrangements to recall misplaced
or wrongly allocated funds and decides in most cases on the
intermediaries involved in the execution of a payment
transaction. In view of all those considerations, it is entirely
appropriate, except under abnormal and unforeseeable
circumstances, to impose liability on the payment service
provider in respect of execution of a payment transaction
accepted from the user, except for the payee's payment
service provider's acts and omissions for whose selection
solely the payee is responsible. However, in order not to
leave the payer unprotected in unlikely constellations where
it may remain open (non liquet) whether the payment
amount was duly received by the payee's payment service
provider or not, the corresponding burden of proof should
lie upon the payer's payment service provider. As a rule, it
can be expected that the intermediary institution, usually a
‘neutral’ body like a central bank or a clearing house,
transferring the payment amount from the sending to the
receiving payment service provider will store the account
data and be able to furnish the latter whenever this may be
the payment amount has been
necessary. Whenever

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service provider's
credited to the receiving payment
account, the payee should immediately have a claim against
his payment service provider for credit to his account.

protection of individuals with regard to the processing of
personal data and on the free movement of such data (1).

(47) The payer's payment

service provider

should assume
liability for correct payment execution,
in
including,
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
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. This Directive should
concern only contractual obligations and responsibilities
between the payment service user and his payment service
provider. However,
functioning of credit
transfers and other payment services requires that payment
service providers and their intermediaries, such as proces-
rights and
sors, have contracts where their mutual
obligations are agreed upon. Questions related to liabilities
form an essential part of these uniform contracts. To ensure
the reliability among payment
service providers and
intermediaries taking part in a payment transaction, legal
certainty is necessary to the effect that a non-responsible
losses
payment
incurred or sums paid under
this
Directive relating to liability. Further rights and details of
content of recourse and how to handle claims towards the
payment service provider or intermediary attributable to a
defective payment transaction should be left to be defined
by contractual arrangements.

is compensated for

the provisions of

service provider

the proper

(48)

It should be possible for the payment service provider to
specify unambiguously the information required to execute
a payment order correctly. On the other hand, however, in
order to avoid fragmentation and jeopardising the setting-
up of
integrated payment systems in the Community,
Member States should not be allowed to require a particular
identifier to be used for payment transactions. However,
this should not prevent Member States from requiring the
payment service provider of
in due
diligence and verify, where technically possible and without
requiring manual intervention, the coherence of the unique
identifier, and where the unique identifier is found to be
incoherent, to refuse the payment order and inform the
payer thereof. The liability of the payment service provider
should be limited to the correct execution of the payment
transaction in accordance with the payment order of the
payment service user.

the payer to act

(50)

law adopted pursuant

It is necessary to ensure the effective enforcement of the
to this
provisions of national
Directive. Appropriate procedures should therefore be
established by means of which it will be possible to pursue
complaints against payment service providers which do not
comply with those provisions and to ensure that, where
appropriate, effective, proportionate and dissuasive penal-
ties are imposed.

(51) 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 consum-
ers arising from the rights and obligations set out in this
Directive. Article 5(2) of the Rome Convention on the law
applicable to contractual obligations (2) ensures 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.

(52) Member States should determine whether the competent
authorities designated for granting authorisation to pay-
ment institutions might also be the competent authorities
with regard to out-of-court
and redress
procedures.

complaint

(53) This Directive should be without prejudice to provisions of
national law relating to the consequences as regards liability
of
inaccuracy in the expression or transmission of a
statement.

(54) Since it is necessary to review the efficient functioning of
this Directive and to monitor progress on the establishment
of a single payment market, the Commission should be
required to produce a report three years after the end of the
transposition period of this Directive. With regard to the
global
financial services and harmonised
consumer protection also beyond the efficient functioning
of this Directive focal points of the review should be the
possible need to expand the scope of application with
regard to non-EU currencies and to payment transactions
where only one payment service provider concerned is
located in the Community.

integration of

(55) Since the provisions of

this Directive replace those of

Directive 97/5/EC, that Directive should be repealed.

(49)

In order to facilitate effective fraud prevention and combat
payment fraud across the Community, 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. All those activities should be conducted in
the European
compliance with Directive 95/46/EC of
Parliament and of the Council of 24 October 1995 on the

(56)

It is necessary to lay down more detailed rules concerning
the fraudulent use of payment cards, an area currently
covered by Directive 97/7/EC of the European Parliament
and of the Council of 20 May 1997 on the protection of

(1) OJ L 281, 23.11.1995, p. 31. Directive as amended by Regulation

(EC) No 1882/2003 (OJ L 284, 31.10.2003, p. 1).

(2) OJ C 27, 26.1.1998, p. 34.

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consumers in respect of distance contracts (1) and Directive
2002/65/EC. Those Directives should therefore be amended
accordingly.

adopted in accordance with the regulatory procedure with
scrutiny provided for in Article 5a of Decision 1999/468/
EC.

(57) Since, pursuant to Directive 2006/48/EC, financial institu-
tions are not subject
to the rules applicable to credit
institutions, they should be made subject to the same
requirements as payment institutions so that they are able
to provide payment services throughout the Community.
amended
Directive 2006/48/EC should therefore be
accordingly.

(58) Since money remittance is defined in this Directive as a
payment service which requires an authorisation for a
payment institution or a registration for some natural or
legal persons benefiting from a waiver clause under certain
circumstances specified in the provisions of this Directive,
Directive 2005/60/EC of the European Parliament and of
the Council of 26 October 2005 on the prevention of the
use of the financial system for the purpose of money
laundering and terrorist financing (2) should be amended
accordingly.

(59)

arrangements

In the interests of legal certainty, it is appropriate to make
transitional
in accordance with which
persons who have commenced the activities of payment
institutions in accordance with the national law in force
before the entry into force of this Directive may continue
those activities within the Member State concerned for a
specified period.

(60) Since the objective of this Directive, namely, the establish-
ment of a single market in payment services, cannot be
sufficiently achieved by the Member States because it
requires the harmonisation of a multitude of different rules
currently existing in the legal systems of
the various
Member States and can therefore be better achieved at
Community level, the Community may adopt measures, in
accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty. In accordance with the principle of
proportionality, as set out in that Article, this Directive does
not go beyond what is necessary in order to achieve that
objective.

(61) The measures necessary for the implementation of this
Directive should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures
implementing powers
the exercise of
conferred on the Commission (3).

for

(62)

In particular, the Commission should be empowered to
adopt implementing provisions in order to take account of
technological and market developments. Since
those
measures are of general scope and are designed to amend
they must be
non-essential elements of

this Directive,

(1) OJ L 144, 4.6.1997, p. 19. Directive as last amended by Directive

2005/29/EC.

(2) OJ L 309, 25.11.2005, p. 15.
(3) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/

512/EC (OJ L 200, 22.7.2006, p. 11).

(63)

the Interinstitutional
In accordance with point 34 of
Agreement on better law-making (4), Member States are
encouraged to draw up, for themselves and in the interest of
the Community, their own tables illustrating, as far as
possible, the correlation between this Directive and the
transposition measures, and to make them public,

HAVE ADOPTED THIS DIRECTIVE:

TITLE I

SUBJECT MATTER, SCOPE AND DEFINITIONS

Article 1

Subject matter

1. This Directive lays down the rules in accordance with which
Member States shall distinguish the following six categories of
payment service provider:

(a)

(b)

(c)

credit institutions within the meaning of Article 4(1)(a) of
Directive 2006/48/EC;

electronic money institutions within the meaning of
Article 1(3)(a) of Directive 2000/46/EC;

post office giro institutions which are entitled under
national law to provide payment services;

(d)

payment institutions within the meaning of this Directive;

(e)

the European Central Bank and national central banks
when not acting in their capacity as monetary authority or
other public authorities;

(f) Member States or their regional or local authorities when

not acting in their capacity as public authorities.

2. This Directive also lays down rules concerning transparency
of conditions and information requirements
for payment
services, and the respective rights and obligations of payment
service users and payment service providers in relation to the
provision of payment services as a regular occupation or
business activity.

Article 2

Scope

1. This Directive shall apply to payment services provided
within the Community. However, with the exception of
Article 73, Titles III and IV shall apply only where both the
payer's payment service provider and the payee's payment service
provider are, or the sole payment service provider in the
payment transaction is, located in the Community.

(4) OJ C 321, 31.12.2003, p. 1.

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2. Titles III and IV shall apply to payment services made in euro
or the currency of a Member State outside the euro area.

3. Member States may waive the application of all or part of
the provisions of this Directive to the institutions referred to in
Article 2 of Directive 2006/48/EC, with the exception of those
referred to in the first and second indent of that article.

Article 3

Negative scope

This Directive shall apply to none of the following:

(a)

(b)

(c)

(d)

(e)

payment
transactions made exclusively in cash directly
from the payer to the payee, without any intermediary
intervention;

payment transactions from the payer to the payee through a
commercial agent authorised to negotiate or conclude the
sale or purchase of goods or services on behalf of the payer
or the payee;

professional physical transport of banknotes and coins,
including their collection, processing and delivery;

payment transactions consisting of the non-professional
cash collection and delivery within the framework of a non-
profit or charitable activity;

services where cash is provided by the payee to the payer as
part of a payment transaction following an explicit request
by the payment service user just before the execution of the
payment transaction through a payment for the purchase of
goods or services;

(f) money exchange business,

is to say, cash-to-cash
operations, where the funds are not held on a payment
account;

that

(g)

transactions based on any of

payment
the following
documents drawn on the payment service provider with a
view to placing funds at the disposal of the payee:

(i)

(ii)

cheques

paper
in accordance with the Geneva
Convention of 19 March 1931 providing a uniform
law for cheques;

paper cheques similar to those referred to in point (i)
and governed by the laws of Member States which are
not party to the Geneva Convention of 19 March
1931 providing a uniform law for cheques;

(iii) paper-based drafts in accordance with the Geneva
Convention of 7 June 1930 providing a uniform law
for bills of exchange and promissory notes;

(iv) paper-based drafts similar to those referred to in point
(iii) and governed by the laws of Member States which

are not party to the Geneva Convention of 7 June
1930 providing a uniform law for bills of exchange
and promissory notes;

(v)

paper-based vouchers;

(vi) paper-based traveller's cheques; or

(vii) paper-based postal money orders as defined by the

Universal Postal Union;

payment transactions carried out within a payment or
securities settlement system between settlement agents,
central counterparties, clearing houses and/or central banks
and other participants of the system, and payment service
providers, without prejudice to Article 28;

(h) or by investment

payment transactions related to securities asset servicing,
income or other distributions, or
including dividends,
redemption or sale, carried out by persons referred to in
point
institutions,
collective investment undertakings or asset management
companies providing investment services and any other
instru-
entities allowed to have the custody of financial
ments;

firms, credit

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 authentica-
information technology (IT) and communication
tion,
network provision, provision and maintenance of terminals
and devices used for payment services;

services based on instruments that can be used to acquire
goods or services only in the premises used by the issuer or
under a commercial agreement with the issuer either within
a limited network of service providers or for a limited range
of goods or services;

payment transactions executed by means of any telecom-
munication, digital or IT device, where the goods or
services purchased are delivered to and are to be used
through a telecommunication, digital or IT device, provided
that the telecommunication, digital or IT operator does not
act only as an intermediary between the payment service
user and the supplier of the goods and services;

(h)

(i)

(j)

(k)

(l)

(m) payment transactions carried out between payment service
providers, their agents or branches for their own account;

(n)

payment transactions between a parent undertaking and its
subsidiary or between subsidiaries of
the same parent
undertaking, without any intermediary intervention by a
than an undertaking
payment
belonging to the same group; or

service provider other

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(o)

services by providers to withdraw cash by means of
automated teller machines acting on behalf of one or more
card issuers, which are not a party to the framework
contract with the customer withdrawing money from a
payment account, on condition that these providers do not
conduct other payment services as listed in the Annex.

Article 4

Definitions

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

1.

‘home Member State’ means either of the following:

(i)

(ii)

the Member State in which the registered office of the
payment service provider is situated; or

if the payment service provider has, under its national
law, no registered office, the Member State in which its
head office is situated;

‘host Member State’ means the Member State other than the
home Member State in which a payment service provider
has an agent or a branch or provides payment services;

‘payment service’ means any business activity listed in the
Annex;

‘payment institution’ means a legal person that has been
granted authorisation in accordance with Article 10 to
provide and execute payment services throughout
the
Community;

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

‘payment system’ means a funds transfer system with
formal and standardised arrangements and common rules
for the processing, clearing and/or settlement of payment
transactions;

‘payer’ means a natural or legal person who holds a
payment account and allows a payment order from that
payment account, or, where there is no payment account, a
natural or legal person who gives a payment order;

‘payee’ means a natural or legal person who is the intended
recipient of funds which have been the subject of a payment
transaction;

‘payment service provider’ means bodies referred to in
Article 1(1) and legal and natural persons benefiting from
the waiver under Article 26;

2.

3.

4.

5.

6.

7.

8.

9.

10.

‘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;

11.

‘consumer’ means a natural person who, in payment service
contracts covered by this Directive, is acting for purposes
other than his trade, business or profession;

12.

13.

‘framework contract’ means a payment service contract
which governs the future execution of
individual and
successive payment transactions and which may contain the
obligation and conditions for setting up a payment account;

‘money remittance’ means a payment service where funds
are received from a payer, without any payment accounts
being created in the name of the payer or the payee, for the
sole purpose of transferring a corresponding amount to a
payee or to another payment service provider acting on
behalf of the payee, and/or where such funds are received
on behalf of and made available to the payee;

14.

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

15.

‘funds’ means banknotes and coins, scriptural money and
electronic money as defined in Article 1(3)(b) of Directive
2000/46/EC;

16.

‘payment order’ means any instruction by a payer or payee
to his payment service provider requesting the execution of
a payment transaction;

17.

‘value date’ means a reference time used by a payment
service provider for the calculation of interest on the funds
debited from or credited to a payment account;

18.

19.

20.

21.

‘reference exchange rate’ means the exchange rate which is
used as the basis to calculate any currency exchange and
which is made available by the payment service provider or
comes from a publicly available source;

‘authentication’ means a procedure which allows
the
payment service provider to verify the use of a specific
including its personalised security
payment
features;

instrument,

‘reference interest rate’ means the interest rate which is used
as the basis for calculating any interest to be applied and
which comes from a publicly available source which can be
verified by both parties to a payment service contract;

‘unique identifier’ means a combination of letters, numbers
or symbols specified to the payment service user by the
payment service provider and to be provided by the
payment service user to identify unambiguously the other
payment service user and/or his payment account for a
payment transaction;

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22.

‘agent’ means a natural or legal person which acts on behalf
of a payment institution in providing payment services;

TITLE II

PAYMENT SERVICE PROVIDERS

23.

‘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;

24.

‘means of distance communication’ refers to any means
which, without the simultaneous physical presence of the
payment service provider and the payment service user,
may be used for the conclusion of a payment services
contract;

25.

service user

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

26.

‘micro-enterprise’ means an enterprise, which at the time of
conclusion of the payment service contract, is an enterprise
as defined in Article 1 and Article 2(1) and (3) of the Annex
to Recommendation 2003/361/EC;

27.

‘business day’ means a day on which the relevant payment
the payer or the payment service
service provider of
provider of
the payee involved in the execution of a
payment transaction is open for business as required for the
execution of a payment transaction;

28.

‘direct debit’ means a payment service for debiting a payer's
payment account, where a payment transaction is initiated
by the payee on the basis of the payer's consent given to the
payee, to the payee's payment service provider or to the
payer's own payment service provider;

29.

‘branch’ means a place of business other than the head
office which is a part of a payment institution, which has no
legal personality and which carries out directly some or all
of the transactions inherent in the business of a payment
institution; all the places of business set up in the same
Member State by a payment institution with a head office in
another Member State shall be regarded as a single branch;

30.

‘group’ means a group of undertakings, which consists of a
parent undertaking, its subsidiaries and the entities in which
the parent undertaking or its subsidiaries have a holding as
well as undertakings linked to each other by a relationship
referred to in Article 12(1) of Directive 83/349/EEC.

CHAPTER 1

Payment institutions

S e c t i o n 1

G e n e r a l r u l e s

Article 5

Applications for authorisation

For authorisation as a payment institution, an application shall
be submitted to the competent authorities of the home Member
State, together with the following:

(a)

(b)

(c)

(d)

(e)

(f)

(g)

a programme of operations, setting out in particular the
type of payment services envisaged;

a business plan including a forecast budget calculation for
the first three financial years which demonstrates that the
applicant is able to employ the appropriate and propor-
resources and procedures to operate
tionate systems,
soundly;

evidence that the payment institution holds initial capital
provided for in Article 6;

for the payment institutions referred to in Article 9(1), a
description of the measures taken for safeguarding payment
service users' funds in accordance with Article 9;

a description of the applicant's governance arrangements
and internal control mechanisms, including administrative,
risk management and accounting procedures, which
demonstrates that these governance arrangements, control
mechanisms and procedures are proportionate, appropri-
ate, sound and adequate;

established in order

a description of the internal control mechanisms which the
applicant has
to comply with
obligations in relation to money laundering and terrorist
financing under Directive 2005/60/EC and Regulation (EC)
No 1781/2006 of the European Parliament and of the
Council of 15 November 2006 on information on the
payer accompanying transfers of funds (1);

the applicant's structural organisation,
a description of
including, where applicable, a description of the intended
use of agents and branches and a description of outsourcing
arrangements, and of its participation in a national or
international payment system;

(h)

the identity of persons holding in the applicant, directly or
indirectly, qualifying holdings within the meaning of
Article 4(11) of Directive 2006/48/EC, the size of their

(1) OJ L 345, 8.12.2006, p. 1.

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holdings and evidence of
account
management of a payment institution;

their suitability taking into
the need to ensure the sound and prudent

(i)

the payment

the identity of directors and persons responsible for the
management of
institution and, where
relevant, persons responsible for the management of the
payment services activities of the payment institution, as
well as evidence that they are of good repute and possess
appropriate knowledge and experience to perform payment
services as determined by the home Member State of the
payment institution;

(j) where applicable, the identity of statutory auditors and
audit firms as defined in Directive 2006/43/EC of the
European Parliament and of the Council of 17 May 2006
on statutory audits of annual accounts and consolidated
accounts (1);

(k)

the applicant's legal status and articles of association;

(l)

the address of the applicant's head office.

For the purposes of points (d), (e) and (g), the applicant shall
provide a description of
its audit arrangements and the
organisational arrangements it has set up with a view to taking
all reasonable steps to protect the interests of its users and to
ensure continuity and reliability in the performance of payment
services.

Article 6

Initial capital

Member States shall require payment institutions to hold, at the
time of authorisation,
initial capital, comprised of the items
defined in Article 57(a) and (b) of Directive 2006/48/EC as
follows:

(a) where the payment institution provides only the payment
service listed in point 6 of the Annex, its capital shall at no
time be less than EUR 20 000;

(b) where the payment institution provides the payment service
listed in point 7 of the Annex, its capital shall at no time be
less than EUR 50 000; and

(c) where the payment institution provides any of the payment
services listed in points 1 to 5 of the Annex, its capital shall
at no time be less than EUR 125 000.

Article 7

Own funds

1. The payment
institution's own funds, as defined in
Articles 57 to 61, 63, 64 and 66 of Directive 2006/48/EC,
may not fall below the amount required under Articles 6 or 8 of
this Directive, whichever the higher.

2. Member States shall take the necessary measures to prevent
the multiple use of elements eligible for own funds where the
institution belongs to the same group as another
payment
payment institution, credit institution,
investment firm, asset
management company or insurance undertaking. This paragraph
institution has a hybrid
shall also apply where a payment
character and carries out activities other than providing payment
services listed in the Annex.

If the conditions laid down in Article 69 of Directive 2006/
3.
48/EC are met, Member States or their competent authorities
may choose not to apply Article 8 of this Directive to payment
institutions which are included in the consolidated supervision of
the parent credit institution pursuant to Directive 2006/48/EC.

Article 8

Calculation of own funds

1. Notwithstanding the initial capital requirements set out in
Article 6, Member States shall require payment institutions to
hold, at all times, own funds calculated in accordance with one of
the following three methods, as determined by the competent
authorities in accordance with national legislation:

Method A

The payment institution's own funds shall amount to at least
10 % of its fixed overheads of the preceding year. The competent
authorities may adjust that requirement in the event of a material
change in a payment institution's business since the preceding
year. Where a payment institution has not completed a full year's
business at the date of the calculation, the requirement shall be
that its own funds amount to at least 10 % of the corresponding
fixed overheads as projected in its business plan, unless an
adjustment to that plan is required by the competent authorities.

Method B

The payment institution's own funds shall amount to at least the
sum of the following elements multiplied by the scaling factor k
defined in paragraph 2, where payment volume (PV) represents
one twelfth of
transactions
executed by the payment institution in the preceding year:

the total amount of payment

(a)

4,0 % of the slice of PV up to EUR 5 million,

plus

(b) 2,5 % of

the slice of PV above EUR 5 million up to

EUR 10 million,

plus

(c)

1 % of
EUR 100 million,

the slice of PV above EUR 10 million up to

(1) OJ L 157, 9.6.2006, p. 87.

plus

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(d) 0,5 % of the slice of PV above EUR 100 million up to

2. The scaling factor k to be used in Methods B and C shall be:

EUR 250 million,

plus

(a)

0,5 where the payment
payment service listed in point 6 of the Annex;

institution provides only the

(e)

0,25 % of the slice of PV above EUR 250 million.

(b) 0,8 where the payment institution provides the payment

service listed in point 7 of the Annex;

Method C

The payment institution's own funds shall amount to at least the
(a), multiplied by the
relevant
multiplication factor defined in point (b) and by the scaling
factor k defined in paragraph 2.

indicator defined in point

(a)

The relevant indicator is the sum of the following:

— interest income,

— interest expenses,

— commissions and fees received, and

— other operating income.

Each element shall be included in the sum with its positive
or negative sign. Income from extraordinary or irregular
items may not be used in the calculation of the relevant
indicator. Expenditure on the outsourcing of services
rendered by third parties may reduce the relevant indicator
if the expenditure is incurred from an undertaking subject
to supervision under this Directive. The relevant indicator is
calculated on the basis of the twelve-monthly observation
at the end of the previous financial year. The relevant
indicator shall be calculated over the previous financial year.
Nevertheless own funds calculated according to Method C
shall not fall below 80 % of the average of the previous
three financial years for
indicator. When
audited figures are not available, business estimates may be
used.

the relevant

(b) The multiplication factor shall be:

10 % of the slice of the relevant indicator up to
EUR 2,5 million;

(i)

(ii)

(c)

institution provides any of
1 where the payment
payment services listed in points 1 to 5 of the Annex.

the

3. The competent authorities may, based on an evaluation of
the risk-management processes, risk loss data base and internal
control mechanisms of
the payment institution, require the
payment institution to hold an amount of own funds which is up
to 20 % higher than the amount which would result from the
application of the method chosen in accordance with para-
graph 1, or permit the payment institution to hold an amount of
own funds which is up to 20 % lower than the amount which
would result from the application of the method chosen in
accordance with paragraph 1.

Article 9

Safeguarding requirements

1. The Member States or competent authorities shall require a
payment institution which provides any of the payment services
listed in the Annex and, at the same time, is engaged in other
business activities referred to in Article 16(1)(c) to safeguard
funds which have been received from the payment service users
or through another payment service provider for the execution
of payment transactions, as follows:

either:

(a)

they 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

(b)

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;

8 % of
EUR 2,5 million up to EUR 5 million;

the slice of

the relevant

indicator

from

or

(iii) 6 % of

the slice of

the relevant

indicator

from

EUR 5 million up to EUR 25 million;

(c)

(iv) 3 % of

the slice of

the relevant

indicator

from

EUR 25 million up to 50 million;

(v)

1,5 % above EUR 50 million.

they shall be covered by an insurance policy or some other
comparable guarantee from an insurance company or a
credit institution, which does not belong to the same group
as the payment institution itself, for an amount equivalent
to that which would have been segregated in the absence of
the insurance policy or other comparable guarantee,
payable in the event that the payment institution is unable
to meet its financial obligations.

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2. Where a payment institution is required to safeguard funds
under paragraph 1 and a portion of those funds is to be used for
future payment transactions with the remaining amount to be
used for non-payment services, that portion of the funds to be
used for future payment transactions shall also be subject to the
requirements under paragraph 1. Where that portion is variable
or unknown in advance, Member States may allow payment
institutions
to apply this paragraph on the basis of a
representative portion assumed to be used for payment services
provided such a representative portion can be reasonably
estimated on the basis of historical data to the satisfaction of
the competent authorities.

3. The Member States or competent authorities may require
that payment
institutions which are not engaged in other
business activities referred to in Article 16(1)(c) shall also comply
with the safeguarding requirements under paragraph 1 of this
Article.

4. The Member States or competent authorities may also limit
such safeguarding requirements to funds of
those payment
service users whose funds individually exceed a threshold of
EUR 600.

Article 10

Granting of authorisation

1. Member States shall require undertakings other than those
referred to in Article 1(1)(a) to (c), (e) and (f) and other than legal
or natural persons benefiting from a waiver under Article 26,
who intend to provide payment services, to obtain authorisation
as a payment institution before commencing the provision of
payment services. An authorisation shall only be granted to a
legal person established in a Member State.

2. An authorisation shall be granted if the information and
evidence accompanying the application complies with all the
requirements under Article 5 and if the competent authorities'
overall
is
favourable. Before an authorisation is granted, the competent
authorities may, where relevant, consult the national central bank
or other relevant public authorities.

assessment, having scrutinised the

application,

mechanisms shall be comprehensive and proportionate to the
nature, scale and complexity of the payment services provided by
the payment institution.

5. Where a payment institution provides any of the payment
services listed in the Annex and, at the same time, is engaged in
other business activities, the competent authorities may require
the establishment of a separate entity for the payment services
business, where the non-payment services activities of
the
payment institution impair or are likely to impair either the
financial soundness of the payment institution or the ability of
the competent authorities to monitor the payment institution's
compliance with all obligations laid down by this Directive.

authorities

competent

6. The
an
authorisation if, taking into account the need to ensure the
sound and prudent management of a payment institution, they
are not satisfied as to the suitability of the shareholders or
members that have qualifying holdings.

to grant

refuse

shall

7. Where close links as defined in Article 4(46) of Directive
2006/48/EC exist between the payment institution and other
natural or legal persons, the competent authorities shall grant an
authorisation only if those links do not prevent the effective
exercise of their supervisory functions.

8. The competent authorities shall grant an authorisation only
if the laws, regulations or administrative provisions of a third
country governing one or more natural or legal persons with
which the payment institution has close links, or difficulties
involved in the enforcement of
those laws, regulations or
administrative provisions, do not prevent the effective exercise of
their supervisory functions.

9. An authorisation shall be valid in all Member States and
shall allow the payment
institution concerned to provide
payment services throughout the Community, either under the
freedom to provide services or the freedom of establishment,
provided that such services are covered by the authorisation.

Article 11

Communication of the decision

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.

Within three months of receipt of an application or, should the
application be incomplete, of all the information required for the
decision, the competent authorities shall inform the applicant
whether the authorisation has been granted or refused. Reasons
shall be given whenever an authorisation is refused.

4. The competent authorities shall grant an authorisation only
if, taking into account the need to ensure the sound and prudent
management of a payment institution, the payment institution
has robust governance arrangements for its payment services
business, which include a clear organisational structure with
well-defined, transparent and consistent lines of responsibility,
effective procedures to identify, manage, monitor and report the
risks to which it is or might be exposed, and adequate internal
and
including sound administrative
control mechanisms,
those arrangements, procedures and
accounting procedures;

Article 12

Withdrawal of authorisation

1. The competent authorities may withdraw an authorisation
issued to a payment institution only where the institution:

(a)

does not make use of the authorisation within 12 months,
expressly renounces the authorisation or has ceased to

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the
engage in business for more than six months,
Member State concerned has made no provision for the
authorisation to lapse in such cases;

if

has obtained the authorisation through false statements or
any other irregular means;

no longer fulfils the conditions for granting the authorisa-
tion;

(b)

(c)

(d) would constitute a threat to the stability of the payment
system by continuing its payment services business; or

(e)

falls within one of the other cases where national
provides for withdrawal of an authorisation.

law

2. Reasons shall be given for any withdrawal of an authorisa-
tion and those concerned shall be informed accordingly.

3. The withdrawal of an authorisation shall be made public.

Article 13

Registration

Member States shall establish a public register of authorised
payment institutions, their agents and branches, as well as of
natural and legal persons, their agents and branches, benefiting
from a waiver under Article 26, and of the institutions referred
to in Article 2(3) that are entitled under national law to provide
payment services. They shall be entered in the register of the
home Member State.

This register shall identify the payment services for which the
payment institution is authorised or for which the natural or
legal person has been registered. Authorised payment institutions
shall be listed in the register separately from natural and legal
persons that have been registered in accordance with Article 26.
The register shall be publicly available for consultation, accessible
online, and updated on a regular basis.

Article 14

Maintenance of authorisation

Where any change affects the accuracy of
information and
evidence provided in accordance with Article 5, the payment
institution shall without undue delay inform the competent
authorities of its home Member State accordingly.

Article 15

Accounting and statutory audit

1. Directive 78/660/EEC and, where applicable, Directives 83/
349/EEC and 86/635/EEC and Regulation (EC) 1606/2002 of
the European Parliament and of the Council of 19 July 2002 on
the application of international accounting standards (1) shall
apply to payment institutions mutatis mutandis.

2. Unless exempted under Directive 78/660/EEC and, where
applicable, Directives 83/349/EEC and 86/635/EEC, the annual
accounts and consolidated accounts of payment institutions shall
be audited by statutory auditors or audit
firms within the
meaning of Directive 2006/43/EC.

3.
For supervisory purposes, Member States shall require that
payment institutions provide separate accounting information
for payment services listed in the Annex and activities referred to
in Article 16(1), which shall be subject to an auditor's report.
That report shall be prepared, where applicable, by the statutory
auditors or an audit firm.

4. The obligations established in Article 53 of Directive 2006/
48/EC shall apply mutatis mutandis to the statutory auditors or
audit
institutions in respect of payment
services activities.

firms of payment

Article 16

Activities

1. Apart from the provision of payment services listed in the
Annex payment institutions shall be entitled to engage in the
following activities:

(a)

the provision of operational and closely related ancillary
services
such as ensuring the execution of payment
transactions, foreign exchange services, safekeeping activ-
ities, and the storage and processing of data;

(b)

the operation of payment systems, without prejudice to
Article 28;

(c)

business activities other than the provision of payment
services, having regard to applicable Community and
national law.

2. When payment institutions engage in the provision of one
or more of the payment services listed in the Annex, they may
hold only payment accounts used exclusively for payment
transactions. Any funds received by payment institutions from
payment service users with a view to the provision of payment
services shall not constitute a deposit or other repayable funds
within the meaning of Article 5 of Directive 2006/48/EC, or
electronic money within the meaning of Article 1(3) of Directive
2000/46/EC.

3.
Payment institutions may grant credit related to payment
services referred to in points 4, 5 or 7 of the Annex only if the
following conditions are met:

(1) OJ L 243, 11.9.2002, p. 1.

(a)

the credit shall be ancillary and granted exclusively in
connection with the execution of a payment transaction;

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(b)

(c)

(d)

notwithstanding national rules on providing credit by credit
cards, the credit granted in connection with a payment and
executed in accordance with Article 10(9) and Article 25
shall be repaid within a short period which shall in no case
exceed twelve months;

such credit shall not be granted from the funds received or
held for the purpose of executing a payment transaction;
and

the own funds of the payment institution shall at all times
and to the satisfaction of the supervisory authorities be
appropriate in view of the overall amount of credit granted.

Payment

institutions shall not conduct

4.
the business of
taking deposits or other repayable funds within the meaning of
Article 5 of Directive 2006/48/EC.

5. This Directive shall be without prejudice to national
measures implementing Directive 87/102/EEC. This Directive
shall also be without prejudice to other relevant Community or
national legislation regarding conditions for granting credit to
consumers not harmonised by this Directive that are in
conformity with Community law.

S e c t i o n 2

O t h e r r e q u i r e m e n t s

Article 17

Use of agents, branches or entities to which activities are
outsourced

1. When a payment institution intends to provide payment
services through an agent it shall communicate the following
information to the competent authorities in its home Member
State:

(a)

the name and address of the agent;

(b)

(c)

a description of the internal control mechanisms that will
be used by agents in order to comply with the obligations
in relation to money laundering and terrorist financing
under Directive 2005/60/EC; and

the identity of directors and persons responsible for the
management of the agent to be used in the provision of
payment services and evidence that they are fit and proper
persons.

2. When the competent authorities receive the information in
accordance with paragraph 1 then they may list the agent in the
register provided for in Article 13.

the competent
3. Before listing the agent
authorities may, if they consider that the information provided to
them is incorrect, take further action to verify the information.

in the register,

If, after

the
4.
competent authorities are not satisfied that the information

taking action to verify the information,

provided to them pursuant to paragraph 1 is correct, they shall
refuse to list the agent in the register provided for in Article 13.

If

the payment

5.
institution wishes to provide payment
services in another Member State by engaging an agent it shall
follow the procedures set out in Article 25. In that case, before
the agent may be registered under this Article, the competent
inform the
authorities of
competent authorities of
their
intention to register the agent and take their opinion into
account.

the home Member State shall

the host Member State of

the agent or establishment of

If the competent authorities of the host Member State have
6.
in connection with the
reasonable grounds to suspect that,
the
intended engagement of
branch, money laundering or terrorist
financing within the
meaning of Directive 2005/60/EC is taking place, has taken place
or been attempted, or that the engagement of such agent or
establishment of such branch could increase the risk of money
laundering or terrorist
they shall so inform the
competent authorities of the home Member State, which may
refuse to register the agent or branch, or may withdraw the
registration, if already made, of the agent or branch.

financing,

7. Where a payment institution intends to outsource opera-
inform the
tional
competent authorities of its home Member State accordingly.

functions of payment

services,

shall

it

Outsourcing of important operational functions may not be
undertaken in such way as to impair materially the quality of the
payment institution's internal control and the ability of the
competent authorities to monitor the payment
institution's
compliance with all obligations laid down in this Directive.

For the purposes of the second subparagraph, an operational
function shall be regarded as important if a defect or failure in its
performance would materially impair the continuing compliance
of a payment institution with the requirements of its authorisa-
tion requested under this Title or its other obligations under this
Directive, or its financial performance, or the soundness or the
continuity of its payment services. Member States shall ensure
that when payment institutions outsource important operational
functions, the payment institutions comply with the following
conditions:

(a)

the outsourcing shall not result in the delegation by senior
management of its responsibility;

(b)

(c)

(d)

the relationship and obligations of the payment institution
towards its payment service users under this Directive shall
not be altered;

the conditions with which the payment institution is to
to be authorised and remain so in
comply in order
accordance with this Title shall not be undermined; and

none of the other conditions subject to which the payment
institution's authorisation was granted shall be removed or
modified.

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Payment institutions shall ensure that agents or branches
8.
acting on their behalf inform payment service users of this fact.

4. The tasks of the competent authorities designated under
paragraph 1 shall be the responsibility of
the competent
authorities of the home Member State.

Article 18

Liability

1. Member States shall ensure that, where payment institutions
the performance of operational
rely on third parties
functions, those payment institutions take reasonable steps to
ensure that the requirements of this Directive are complied with.

for

institutions
2. Member States shall
remain fully liable for any acts of their employees, or any agent,
branch or entity to which activities are outsourced.

require that payment

Paragraph 1 shall not imply that the competent authorities
5.
are required to supervise business activities of the payment
institutions other than the provision of payment services listed in
the Annex and the activities listed in Article 16(1)(a).

Article 21

Supervision

Article 19

Record-keeping

1. Member States shall ensure that the controls exercised by the
competent authorities for checking continued compliance with
this Title are proportionate, adequate and responsive to the risks
to which payment institutions are exposed.

Member States shall require payment institutions to keep all
appropriate records for the purpose of this Title for at least five
years, without prejudice to Directive 2005/60/EC or other
relevant Community or national legislation.

In order to check compliance with this Title, the competent
authorities shall be entitled to take the following steps,
in
particular:

S e c t i o n 3

C o m p e t e n t a u t h o r i t i e s a n d s u p e r v i s i o n

Article 20

Designation of competent authorities

(a)

(b)

to require
information needed to monitor compliance;

the payment

institution to provide

any

to carry out on-site inspections at the payment institution,
at any agent or branch providing payment services under
the responsibility of the payment institution, or at any
entity to which activities are outsourced;

1. Member States shall designate as the competent authorities
responsible for the authorisation and prudential supervision of
payment institutions which are to carry out the duties provided
for under this Title either public authorities, or bodies recognised
by national law or by public authorities expressly empowered for
that purpose by national law, including national central banks.

The competent authorities shall guarantee independence from
interest. Without
economic bodies and avoid conflicts of
prejudice to the first subparagraph, payment institutions, credit
institutions, electronic money institutions, or post office giro
institutions shall not be designated as competent authorities.

The Member States shall inform the Commission accordingly.

2. Member States shall ensure that the competent authorities
designated under paragraph 1 possess all the powers necessary
for the performance of their duties.

(c)

to issue recommendations, guidelines and,
binding administrative provisions; and

if applicable,

(d)

to suspend or withdraw authorisation in cases referred to in
Article 12.

2. Without prejudice to the procedures for the withdrawal of
authorisations and the provisions of criminal law, the Member
States shall provide that their respective competent authorities,
may, as against payment institutions or those who effectively
control the business of payment institutions which breach laws,
regulations or administrative provisions concerning the super-
vision or pursuit of their payment service business, adopt or
impose in respect of
them penalties or measures aimed
specifically at ending observed breaches or the causes of such
breaches.

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. Notwithstanding the requirements of Article 6, Article 7(1)
and (2) and Article 8, Member States shall ensure that the
competent authorities are entitled to take steps described under
paragraph 1 of
for
payment services, in particular where the non-payment services
activities of the payment institution impair or are likely to impair
the financial soundness of the payment institution.

this Article to ensure sufficient capital

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Article 22

Professional secrecy

Article 25

Exercise of the right of establishment and freedom to
provide services

1. Member States shall ensure that all persons working or who
have worked for the competent authorities, as well as experts
acting on behalf of the competent authorities, are bound by the
obligation of professional secrecy, without prejudice to cases
covered by criminal law.

In the exchange of

2.
information in accordance with
Article 24, professional secrecy shall be strictly applied to ensure
the protection of individual and business rights.

3. Member States may apply this Article taking into account,
mutatis mutandis, Articles 44 to 52 of Directive 2006/48/EC.

Article 23

Right to apply to the courts

1. Member States shall ensure that decisions taken by the
competent authorities in respect of a payment
institution
pursuant to the laws, regulations and administrative provisions
adopted in accordance with this Directive may be contested
before the courts.

2.

Paragraph 1 shall apply also in respect of failure to act.

Article 24

Exchange of information

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 and other
competent authorities
designated under Community or national legislation applicable
to payment service providers.

relevant

2. Member States shall,
in addition, allow the exchange of
information between their competent authorities and the
following:

(a)

(b)

(c)

the competent authorities of other Member States respon-
sible for the authorisation and supervision of payment
institutions;

the European Central Bank and the national central banks
in their capacity as monetary and
of Member States,
oversight authorities, and, where appropriate, other public
authorities responsible for overseeing payment and settle-
ment systems;

other relevant authorities designated under this Directive,
Directive 95/46/EC, Directive 2005/60/EC and other
Community legislation applicable to payment
service
providers, such as legislation applicable to the protection
of individuals with regard to the processing of personal data
as well as money laundering and terrorist financing.

institution wishing to provide
1. Any authorised payment
payment services for the first time in a Member State other than
its home Member State, in exercise of the right of establishment
or
so inform the
competent authorities in its home Member State.

the freedom to provide services,

shall

the home Member State shall

Within one month of receiving that information, the competent
authorities of
inform the
competent authorities of the host Member State of the name
and address of the payment institution, the names of those
responsible for the management of the branch, its organisational
structure and of the kind of payment services it intends to
provide in the territory of the host Member State.

2.
In order to carry out the controls and take the necessary
steps provided for in Article 21 in respect of the agent, branch or
entity to which activities are outsourced of a payment institution
located in the territory of another Member State, the competent
authorities of the home Member State shall cooperate with the
competent authorities of the host Member State.

3. By way of cooperation in accordance with paragraphs 1 and
2, the competent authorities of the home Member State shall
notify the competent authorities of
the host Member State
whenever they intend to carry out an on-site inspection in the
territory of the latter.

However, if they so wish, the competent authorities of the home
Member State may delegate to the competent authorities of the
host Member State the task of carrying out on-site inspections of
the institution concerned.

4. 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.

5.
Paragraphs 1 to 4 shall be without prejudice to the
obligation of competent authorities under Directive 2005/60/
EC and Regulation (EC) No 1781/2006,
in particular under
Article 37(1) of Directive 2005/60/EC and Article 15(3) of
Regulation (EC) No 1781/2006 to supervise or monitor the
compliance with the requirements laid down in those instru-
ments.

S e c t i o n 4

Wa i v e r

Article 26

Conditions

1. Notwithstanding Article 13, Member States may waive or
allow their competent authorities to waive the application of all
or part of the procedure and conditions set out in Sections 1 to

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3, with the exception of Articles 20, 22, 23 and 24, and allow
natural or legal persons to be entered in the register provided for
in Article 13, where:

persons concerned and, on an annual basis, of the total amount
of payment transactions executed as of 31 December of each
calendar year, as referred to in Article 26(1)(a).

(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 3 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; and

(b)

none of the natural persons responsible for the manage-
ment or operation of the business has been convicted of
offences relating to money laundering or terrorist financing
or other financial crimes.

CHAPTER 2

Common provisions

Article 28

Access to payment systems

1. Member States shall ensure that the rules on access of
authorised or registered payment service providers that are legal
persons to payment systems shall be objective, non-discrimina-
tory and proportionate and that those rules do not inhibit access
more than is necessary to safeguard against specific risks such as
settlement risk, operational risk and business risk and to protect
the financial and operational stability of the payment system.

2. Any natural or legal person registered in accordance with
paragraph 1 shall be required to have its head office or place of
residence in the Member State in which it actually carries on its
business.

Payment systems shall impose on payment service providers, on
payment service users or on other payment systems none of the
following requirements:

3. The persons referred to in paragraph 1 shall be treated as
payment institutions, save that Article 10(9) and Article 25 shall
not apply to them.

4. Member States may also provide that any natural or legal
person registered in accordance with paragraph 1 may engage
only in certain activities listed in Article 16.

5. The persons referred to in paragraph 1 shall notify the
competent authorities of any change in their situation which is
relevant to the conditions specified in that paragraph. Member
States shall take the necessary steps to ensure that where the
conditions set out in paragraphs 1, 2 and 4 are no longer
fulfilled, the persons concerned shall seek authorisation within
30 calendar days in accordance with the procedure laid down in
Article 10.

6. This Article shall not be applied in respect of provisions of
Directive 2005/60/EC or national anti-money-laundering provi-
sions.

Article 27

Notification and information

(a)

any restrictive rule on effective participation in other
payment systems;

(b)

any rule which discriminates between authorised payment
service providers or between registered payment service
providers
in relation to the rights, obligations and
entitlements of participants; or

(c)

any restriction on the basis of institutional status.

2.

Paragraph 1 shall not apply to:

(a)

payment systems designated under Directive 98/26/EC;

(b)

payment systems composed exclusively of payment service
providers belonging to a group composed of entities linked
by capital where one of the linked entities enjoys effective
control over the other linked entities; or

(c)

payment systems where a sole payment service provider
(whether as a single entity or as a group):

— acts or can act as the payment service provider for
both the payer and the payee and is exclusively
responsible for the management of the system, and

If a Member State avails itself of the waiver provided for in
Article 26,
it shall notify the Commission accordingly by
1 November 2009 and it shall notify the Commission forthwith
of any subsequent change. In addition, the Member State shall
inform the Commission of the number of natural and legal

— licenses other payment service providers to participate
in the system and the latter have no right to negotiate
fees between or amongst themselves in relation to the
payment system although they may establish their
own pricing in relation to payers and payees.

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Article 29

Prohibition for persons other than payment service
providers to provide payment services

Member States shall prohibit natural or legal persons that are
neither payment service providers nor explicitly excluded from
the scope of this Directive from providing the payment services
listed in the Annex.

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.

Article 33

Burden of proof on information requirements

TITLE III

TRANSPARENCY OF CONDITIONS AND INFORMATION
REQUIREMENTS FOR PAYMENT SERVICES

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.

CHAPTER 1

General rules

Article 30

Scope

transactions,
1. This Title shall apply to single payment
framework contracts and payment transactions covered by them.
The parties may agree that it shall not apply in whole or in part
when the payment service user is not a consumer.

Article 34

Derogation from information requirements for low-value
payment instruments and electronic money

1.
In cases of payment instruments which, according to the
framework contract, concern only individual payment transac-
tions that do not exceed EUR 30 or that either have a spending
limit of EUR 150 or store funds that do not exceed EUR 150 at
any time:

2. Member States may provide that the provisions in this Title
shall be applied to micro enterprises in the same way as to
consumers.

(a)

3. This Directive shall be without prejudice to national
measures implementing Directive 87/102/EEC. This Directive
shall also be without prejudice to other relevant Community or
national legislation regarding conditions for granting credit to
consumers not harmonised by this Directive that are in
conformity with Community law.

Article 31

Other provisions in Community legislation

The provisions of
this Title are without prejudice to any
Community legislation containing additional requirements on
prior information.

However, where Directive 2002/65/EC is also applicable, the
information requirements set out in Article 3(1) of that Directive,
with the exception of points (2)(c) to (g), (3)(a), (d) and (e), and
(4)(b) of that paragraph shall be replaced by Articles 36, 37, 41
and 42 of this Directive.

Article 32

Charges for information

1. The payment service provider shall not charge the payment
service user for providing information under this Title.

2. The payment service provider and the payment service user
may agree on charges
for additional or more frequent
information, or transmission by means of communication other
than those specified in the framework contract, provided at the
payment service user's request.

by way of derogation from Articles 41, 42 and 46, the
payment service provider shall provide the payer only with
information on the main characteristics of the payment
service, including the way in which the payment instrument
liability, charges levied and other material
can be used,
information needed to take an informed decision as well as
an indication of where any other
information and
conditions specified in Article 42 are made available in
an easily accessible manner;

(b)

it may be agreed that, by way of derogation from Article 44,
the payment service provider shall not be required to
propose changes in the conditions of
the framework
contract in the same way as provided for in Article 41(1);

(c)

it may be agreed that, by way of derogation from Articles 47
and 48, after the execution of a payment transaction:

(i)

(ii)

the payment service provider shall provide or make
available only a reference enabling the payment
service user to identify the payment transaction, the
amount of the payment transaction, any charges and/
or, in the case of several payment transactions of the
same kind made to the same payee, information on
the total amount and charges for those payment
transactions;

the payment service provider shall not be required to
provide or make available information referred to in
point (i) if the payment instrument is used anony-
mously or if the payment service provider is not
otherwise technically in a position to provide it.
However, the payment service provider shall provide
the payer with a possibility to verify the amount of
funds stored.

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For national payment transactions, Member States or their
2.
competent authorities may reduce or double the amounts
referred to in paragraph 1. For prepaid payment instruments,
Member States may increase those amounts up to EUR 500.

(b)

(c)

CHAPTER 2

Single payment transactions

Article 35

Scope

1. This Chapter shall apply to single payment transactions not
covered by a framework contract.

2. When a payment order for a single payment transaction is
transmitted by a payment instrument covered by a framework
contract, the payment service provider shall not be obliged to
provide or make available information which is already given to
the payment service user on the basis of a framework contract
with another payment service provider or which will be given to
him according to that framework contract.

Article 36

Prior general information

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 37. At the payment service user's
request,
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.

service provider

shall provide

the payment

2.
If the single payment service contract has been concluded at
the request of the payment service user using a means of distance
communication which does not enable the payment service
provider to comply with paragraph 1, the payment service
that paragraph
provider
immediately after the execution of the payment transaction.

its obligations under

fulfil

shall

the maximum execution time for the payment service to be
provided;

all charges payable by the payment service user to his
the
payment
breakdown of the amounts of any charges;

service provider and, where applicable,

(d) where applicable, the actual or reference exchange rate to

be applied to the payment transaction.

2. Where applicable, any other
information and
conditions specified in Article 42 shall be made available to
the payment service user in an easily accessible manner.

relevant

Article 38

Information for the payer after receipt of the payment
order

Immediately after receipt of
the payment order, the payer's
payment service provider shall provide or make available to the
payer, in the same way as provided for in Article 36(1), the
following information:

(a)

(b)

(c)

a reference enabling the payer to identify the payment
transaction and, where appropriate, information relating to
the payee;

the amount of the payment transaction in the currency
used in the payment order;

the amount of any charges for the payment transaction
payable by the payer and, where applicable, a breakdown of
the amounts of such charges;

(d) where applicable, the exchange rate used in the payment
transaction by the payer's payment service provider or a
reference thereto, when different from the rate provided in
accordance with Article 37(1)(d), and the amount of the
payment transaction after that currency conversion; and

(e)

the date of receipt of the payment order.

3. The obligations under paragraph 1 may also be discharged
by supplying a copy of the draft single payment service contract
or the draft payment order including the information and
conditions specified in Article 37.

Article 39

Information for the payee after execution

Article 37

Information and conditions

1. Member States shall ensure that the following information
and conditions are provided or made available to the payment
service user:

Immediately after the execution of the payment transaction, the
payee's payment service provider shall provide or make available
to the payee, in the same way as provided for in Article 36(1), the
following information:

(a)

the reference enabling the payee to identify the payment
transaction and, where appropriate, the payer and any
information transferred with the payment transaction;

(a)

a specification of the information or unique identifier that
has to be provided by the payment service user in order for
a payment order to be properly executed;

(b)

the amount of the payment transaction in the currency in
which the funds are at the payee's disposal;

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(c)

the amount of any charges for the payment transaction
payable by the payee and, where applicable, a breakdown of
the amount of such charges;

including electronic mail address, relevant for com-
munication with the payment service provider; and

(d) where applicable, the exchange rate used in the payment
transaction by the payee's payment service provider, and the
amount of the payment transaction before that currency
conversion; and

(b)

the particulars of the relevant supervisory authorities
and of the register provided for in Article 13 or of any
other relevant public register of authorisation of the
payment service provider and the registration number,
or equivalent means of identification in that register;

(e)

the credit value date.

2.

on use of the payment service:

CHAPTER 3

Framework contracts

Article 40

Scope

This Chapter applies to payment transactions covered by a
framework contract.

Article 41

Prior general information

1. Member States shall require that, in good time before the
payment service user is bound by any framework contract or
offer, the payment service provider provide the payment service
user on paper or on another durable medium with the
specified in Article 42. The
information and conditions
information and conditions shall be given in easily under-
standable 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.

If the framework contract has been concluded at the request
2.
of
service user using a means of distance
the payment
communication which does not enable the payment service
provider to comply with paragraph 1, the payment service
provider
that paragraph
immediately after the conclusion of the framework contract.

its obligations under

fulfil

shall

3. The obligations under paragraph 1 may also be discharged
by supplying a copy of the draft framework contract including
the information and conditions specified in Article 42.

Article 42

Information and conditions

Member States shall ensure that the following information and
conditions are provided to the payment service user:

(a)

(b)

(c)

(d)

a description of
payment service to be provided;

the main characteristics of

the

a specification of the information or unique identifier
that has to be provided by the payment service user in
order for a payment order to be properly executed;

the form of and procedure for giving consent to
execute a payment transaction and withdrawal of such
consent in accordance with Articles 54 and 66;

a reference to the point in time of receipt of a payment
order as defined in Article 64 and the cut-off time, if
any, established by the payment service provider;

(e)

the maximum execution time for the payment services
to be provided; and

(f) whether there is a possibility to agree on spending
in

the payment

instrument

limits for the use of
accordance with Article 55(1);

3.

on charges, interest and exchange rates:

(a)

all charges payable by the payment service user to the
payment service provider and, where applicable, the
breakdown of the amounts of any charges;

(b) where applicable, the interest and exchange rates to be
applied or, if reference interest and exchange rates are
to be used,
the method of calculating the actual
interest, and the relevant date and index or base for
determining such reference interest or exchange rate;
and

(c)

if agreed, the immediate application of changes in
reference interest or exchange rate and information
requirements related to the changes in accordance
with Article 44(2);

1.

on the payment service provider:

4.

on communication:

(a)

the payment

service provider,

the name of
the
geographical address of its head office and, where
applicable, the geographical address of its agent or
branch established in the Member State where the
payment service is offered, and any other address,

(a) where applicable,

the means of communication,
including the technical requirements for the payment
service user's equipment, agreed between the parties
for the transmission of information or notifications
under this Directive;

(b)

(c)

(d)

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(b)

(c)

(d)

the manner in and frequency with which information
under
this Directive is to be provided or made
available;

7.

on redress:

the language or languages in which the framework
contract will be concluded and communication
during this contractual relationship undertaken; and

service user's

the payment
contractual
information and conditions
Article 43;

terms of

right

to receive the
the framework contract and
in accordance with

(a)

any contractual clause on the law applicable to the
framework contract and/or the competent courts; and

(b)

the out-of-court complaint and redress procedures
available to the payment service user in accordance
with Articles 80 to 83.

Article 43

5.

on safeguards and corrective measures:

Accessibility of information and conditions of the
framework contract

(a) where applicable, a description of steps that

the
payment service user is to take in order to keep safe a
payment instrument and how to notify the payment
service provider for the purposes of Article 56(1)(b);

if agreed, the conditions under which the payment
service provider reserves the right to block a payment
instrument in accordance with Article 55;

At any time during the contractual relationship the payment
service user shall have a right
the
contractual terms of the framework contract as well as the
information and conditions specified in Article 42 on paper or
on another durable medium.

to receive, on request,

Article 44

the liability of the payer in accordance with Article 61,
including information on the relevant amount;

Changes in conditions of the framework contract

how and within what period of time the payment
service user is to notify the payment service provider
of any unauthorised or incorrectly executed payment
transaction in accordance with Article 58 as well as
the
for
service
payment
transactions in accordance
unauthorised payment
with Article 60;

provider's

liability

(e)

the liability of the payment service provider for the
execution of payment transactions in accordance with
Article 75; and

(f)

the
for
conditions
Articles 62 and 63;

refund in accordance with

6.

on changes in and termination of framework contract:

(a)

if agreed, information that the payment service user
will be deemed to have accepted changes in the
conditions in accordance with Article 44, unless he
notifies the payment service provider that he does not
accept them before the date of their proposed date of
entry into force;

(b)

the duration of the contract; and

1. Any changes in the framework contract as well as the
information and conditions specified in Article 42, shall be
proposed by the payment service provider in the same way as
provided for in Article 41(1) and no later than two months
before their proposed date of application.

Where applicable in accordance with point (6)(a) of Article 42,
the payment service provider shall inform the payment service
user that he is to be deemed to have accepted these changes if he
does not notify the payment service provider that he does not
accept them before the proposed date of their entry into force. In
this case, the payment service provider shall also specify that the
payment service user has the right to terminate the framework
contract immediately and without charge before the date of the
proposed application of the changes.

2. Changes in the interest or exchange rates may be applied
immediately and without notice, provided that such a right is
agreed upon in the framework contract and that the changes are
based on the reference interest or exchange rates agreed on in
accordance with Article 42(3)(b) and (c). The payment service
user shall be informed of any change in the interest rate at the
earliest opportunity in the same way as provided for in Article 41
(1), unless the parties have agreed on a specific frequency or
manner in which the information is to be provided or made
available. However, changes in interest or exchange rates which
are more favourable to the payment service users, may be applied
without notice.

(c)

the right of the payment service user to terminate the
framework contract and any agreements relating to
termination in accordance with Article 44(1) and
Article 45;

3. Changes in the interest or exchange rate used in payment
transactions shall be implemented and calculated in a neutral
manner that does not discriminate against payment service users.

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Article 45

Termination

1. The payment service user may terminate the framework
contract at any time, unless the parties have agreed on a period
of notice. Such a period may not exceed one month.

2. Termination of a framework contract concluded for a fixed
period exceeding 12 months or for an indefinite period shall be
free of charge for the payment service user after the expiry of 12
months. In all other cases charges for the termination shall be
appropriate and in line with costs.

3.
If agreed in the framework contract, the payment service
provider may terminate a framework contract concluded for an
indefinite period by giving at least two months' notice in the
same way as provided for in Article 41(1).

4. Charges for payment services levied on a regular basis shall
be payable by the payment service user only proportionally up to
the termination of the contract. If such charges are paid in
advance, they shall be reimbursed proportionally.

(b)

(c)

the amount of the payment transaction in the currency in
which the payer's payment account is debited or in the
currency used for the payment order;

the amount of any charges for the payment transaction and,
where applicable, a breakdown thereof, or the interest
payable by the payer;

(d) where applicable, the exchange rate used in the payment
transaction by the payer's payment service provider, and the
amount of the payment transaction after that currency
conversion; and

(e)

the debit value date or the date of receipt of the payment
order.

2. A framework contract may include a condition that the
information referred to in paragraph 1 is to be provided or made
available periodically at least once a month and in an agreed
manner which allows
to store and reproduce
the payer
information unchanged.

3. However, Member States may require payment service
providers to provide information on paper once a month free
of charge.

5. The provisions of this Article are without prejudice to the
Member States' laws and regulations governing the rights of the
parties to declare the framework contract unenforceable or void.

Article 48

6. Member States may provide more favourable provisions for
payment service users.

Article 46

Information before execution of individual payment
transactions

In the case of an individual payment
transaction under a
framework contract initiated by the payer, a payment service
provider shall, at the payer's request for this specific payment
transaction, provide explicit
information on the maximum
execution time and the charges payable by the payer and, where
applicable, a breakdown of the amounts of any charges.

Article 47

Information for the payer on individual payment
transactions

1. After the amount of an individual payment transaction is
debited from the payer's account or, where the payer does not
use a payment account, after the receipt of the payment order,
the payer's payment service provider shall provide the payer
without undue delay in the same way as laid down in Article 41
(1) with the following information:

(a)

a reference enabling the payer to identify each payment
transaction and, where appropriate, information relating to
the payee;

Information for the payee on individual payment
transactions

1. After the execution of an individual payment transaction,
the payee's payment service provider shall provide the payee
without undue delay in the same way as laid down in Article 41
(1) with the following information:

(a)

(b)

(c)

the reference enabling the payee to identify the payment
transaction and, where appropriate, the payer, and any
information transferred with the payment transaction;

the amount of the payment transaction in the currency in
which the payee's payment account is credited;

the amount of any charges for the payment transaction and,
where applicable, a breakdown thereof, or the interest
payable by the payee;

(d) where applicable, the exchange rate used in the payment
transaction by the payee's payment service provider, and the
amount of the payment transaction before that currency
conversion; and

(e)

the credit value date.

2. A framework contract may include a condition that the
information referred to in paragraph 1 is to be provided or made
available periodically at least once a month and in an agreed
the payee to store and reproduce
manner which allows
information unchanged.

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3. However, Member States may require payment service
providers to provide information on paper once a month free
of charge.

CHAPTER 4

Common provisions

Article 49

Currency and currency conversion

Payments shall be made in the currency agreed between the

1.
parties.

2. Where a currency conversion service is offered prior to the
initiation of the payment transaction and where that currency
conversion service is offered at the point of sale or by the payee,
the party offering the currency conversion service to the payer
shall disclose to the payer all charges as well as the exchange rate
to be used for converting the payment transaction.

The payer shall agree to the currency conversion service on that
basis.

Article 50

Information on additional charges or reductions

1. Where, for the use of a given payment instrument, the payee
requests a charge or offers a reduction, the payee shall inform the
payer thereof prior to the initiation of the payment transaction.

2. Where,
instrument, a
for the use of a given payment
payment service provider or a third party requests a charge, he
shall
inform the payment service user thereof prior to the
initiation of the payment transaction.

TITLE IV

RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION
AND USE OF PAYMENT SERVICES

CHAPTER 1

Common provisions

Article 51

Scope

1. Where the payment service user is not a consumer, the
parties may agree that Article 52(1), the second subparagraph of
Article 54(2), and Articles 59, 61, 62, 63, 66 and 75 shall not
apply in whole or in part. The parties may also agree on a time
period different from that laid down in Article 58.

2. Member States may provide that Article 83 does not apply
where the payment service user is not a consumer.

3. Member States may provide that provisions in this Title are
applied to micro enterprises in the same way as to consumers.

4. This Directive shall be without prejudice to national
measures implementing Directive 87/102/EEC. This Directive
shall also be without prejudice to other relevant Community or
national legislation regarding conditions for granting credit to
consumers not harmonised by this Directive that are in
conformity with Community law.

Article 52

Charges applicable

1. The payment service provider may not charge the payment
its information obligations or
service user for fulfilment of
corrective and preventive measures under this Title, unless
otherwise specified in Articles 65(1), 66(5) and 74(2). Those
charges shall be agreed between the payment service user and the
payment service provider and shall be appropriate and in line
with the payment service provider's actual costs.

2. Where a payment transaction does not involve any currency
conversion, Member States shall require that the payee pays the
charges levied by his payment service provider, and the payer
pays the charges levied by his payment service provider.

3. The payment service provider shall not prevent the payee
from requesting from the payer a charge or from offering him a
reduction for the use of a given payment instrument. However,
Member States may forbid or limit the right to request charges
taking into account the need to encourage competition and
promote the use of efficient payment instruments.

Article 53

Derogation for low value payment instruments and
electronic money

In the case of payment instruments which according to the
1.
framework contract, solely concern individual payment transac-
tions not exceeding EUR 30 or which either have a spending
limit of EUR 150 or store funds which do not exceed EUR 150 at
any time payment service providers may agree with their
payment service users that:

(a) Article 56(1)(b) and Article 57(1)(c) and (d) as well as
the payment
Article 61(4) and (5) do not apply if
instrument does not allow its blocking or prevention of
its further use;

(b) Articles 59, 60 and Article 61(1) and (2) do not apply if the
payment instrument is used anonymously or the payment
service provider is not in a position for other reasons which
are intrinsic to the payment instrument to prove that a
payment transaction was authorised;

(c)

by way of derogation from Article 65(1), the payment
service provider is not required to notify the payment
service user of the refusal of a payment order, if the non-
execution is apparent from the context;

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(d)

by way of derogation from Article 66, the payer may not
revoke the payment order after transmitting the payment
order or giving his consent
to execute the payment
transaction to the payee;

(e)

by way of derogation from Articles 69 and 70, other
execution periods apply.

For national payment transactions, Member States or their
2.
competent authorities may reduce or double the amounts
referred to in paragraph 1. They may increase them for prepaid
payment instruments up to EUR 500.

3. Articles 60 and 61 shall apply also to electronic money
within the meaning of Article 1(3)(b) of Directive 2000/46/EC,
except where the payer's payment service provider does not have
the ability to freeze the payment account or block the payment
instrument. Member States may limit that derogation to payment
accounts or payment instruments of a certain value.

CHAPTER 2

Authorisation of payment transactions

Article 54

Consent and withdrawal of consent

If agreed in the framework contract, the payment service
2.
provider may reserve the right to block the payment instrument
for objectively justified reasons related to the security of the
payment instrument, the suspicion of unauthorised or fraudulent
use of the payment instrument or, in the case of a payment
instrument with a credit line, a significantly increased risk that
the payer may be unable to fulfil his liability to pay.

3.
In such cases the payment service provider shall inform the
payer of the blocking of the payment instrument and the reasons
for it in an agreed manner, where possible, before the payment
instrument is blocked and at the latest immediately thereafter,
unless giving such information would compromise objectively
justified security reasons or is prohibited by other relevant
Community or national legislation.

4. The payment service provider shall unblock the payment
instrument or replace it with a new payment instrument once
the reasons for blocking no longer exist.

Article 56

Obligations of the payment service user in relation to
payment instruments

1. The payment service user entitled to use a payment
instrument shall have the following obligations:

1. Member States shall ensure that a payment transaction is
considered to be authorised only if the payer has given consent
to execute the payment transaction. A payment transaction may
be authorised by the payer prior to or, if agreed between the
payer and his payment service provider, after the execution of the
payment transaction.

(a)

(b)

2. Consent to execute a payment transaction or a series of
payment transactions shall be given in the form agreed between
the payer and his payment service provider.

In the absence of such consent, a payment transaction shall be
considered to be unauthorised.

3. Consent may be withdrawn by the payer at any time, but no
later than the point in time of irrevocability under Article 66.
Consent to execute a series of payment transactions may also be
withdrawn with the effect that any future payment transaction is
to be considered as unauthorised.

4. The procedure for giving consent shall be agreed between
the payer and the payment service provider.

Article 55

Limits of the use of the payment instrument

to use the payment instrument in accordance with the
the payment
terms governing the issue and use of
instrument; and

to notify the payment service provider, or the entity
specified by the latter, without undue delay on becoming
aware of loss, theft or misappropriation of the payment
instrument or of its unauthorised use.

For the purposes of paragraph 1(a), the payment service user
2.
shall, in particular, as soon as he receives a payment instrument,
take all reasonable steps to keep its personalised security features
safe.

Article 57

Obligations of the payment service provider in relation to
payment instruments

1. The payment service provider issuing a payment instrument
shall have the following obligations:

(a)

to make sure that the personalised security features of the
payment instrument are not accessible to parties other than
the payment service user entitled to use the payment
instrument, without prejudice to the obligations on the
payment service user set out in Article 56;

1.
In cases where a specific payment instrument is used for the
purposes of giving consent, the payer and his payment service
provider may agree on spending limits for payment transactions
executed through that payment instrument.

(b)

to refrain from sending an unsolicited payment instrument,
except where a payment instrument already given to the
payment service user is to be replaced;

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to ensure that appropriate means are available at all times
to enable the payment service user to make a notification
pursuant to Article 56(1)(b) or request unblocking pursuant
to Article 55(4); on request, the payment service provider
shall provide the payment service user with the means to
prove, for 18 months after notification, that he made such
notification; and

transaction and, where applicable, restores the debited payment
account to the state in which it would have been had the
unauthorised payment transaction not taken place.

Further

financial compensation may be determined in
2.
accordance with the law applicable to the contract concluded
between the payer and his payment service provider.

(c)

(d)

to prevent all use of
notification pursuant to Article 56(1)(b) has been made.

the payment

instrument once

2. The payment service provider shall bear the risk of sending a
payment instrument to the payer or of sending any personalised
security features of it.

Article 58

Notification of unauthorised or incorrectly executed
payment transactions

The payment service user shall obtain rectification from the
payment service provider only if he notifies his payment service
provider without undue delay on becoming aware of any
unauthorised or
transactions
giving rise to a claim, including that under Article 75, and no
the debit date, unless, where
later
applicable, the payment service provider has failed to provide
or make available the information on that payment transaction
in accordance with Title III.

incorrectly executed payment

than 13 months after

Article 59

Evidence on authentication and execution of payment
transactions

1. Member States shall require that, where a payment service
user denies having authorised an executed payment transaction
transaction was not correctly
or claims that
executed, it is for his payment service provider to prove that the
payment
transaction was authenticated, accurately recorded,
entered in the accounts and not affected by a technical
breakdown or some other deficiency.

the payment

2. Where a payment service user denies having authorised an
executed payment transaction, the use of a payment instrument
recorded by the payment service provider shall
in itself not
the payment
that
necessarily be sufficient
transaction was authorised by the payer or that the payer acted
fraudulently or failed with intent or gross negligence to fulfil one
or more of his obligations under Article 56.

to prove either

Article 60

Payment service provider's liability for unauthorised
payment transactions

1. Member States shall ensure that, without prejudice to
Article 58, in the case of an unauthorised payment transaction,
the payer's payment service provider refunds to the payer
the unauthorised payment
immediately

amount of

the

Article 61

Payer's liability for unauthorised payment transactions

1. By way of derogation from Article 60 the payer shall bear
the losses relating to any unauthorised payment transactions, up
to a maximum of EUR 150, resulting from the use of a lost or
stolen payment instrument or, if the payer has failed to keep the
personalised security features safe, from the misappropriation of
a payment instrument.

the losses

shall bear all

2. The payer
relating to any
transactions if he incurred them by
unauthorised payment
acting fraudulently or by failing to fulfil one or more of his
obligations under Article 56 with intent or gross negligence. In
such cases, the maximum amount referred to in paragraph 1 of
this Article shall not apply.

3.
In cases where the payer has neither acted fraudulently nor
with intent failed to fulfil his obligations under Article 56,
Member States may reduce the liability referred to in paragraphs 1
and 2 of this Article, taking into account, in particular, the nature
of the personalised security features of the payment instrument
and the circumstances under which it was lost, stolen or
misappropriated.

4. The payer
resulting from use of
payment
Article 56(1)(b), except where he has acted fraudulently.

shall not bear any financial consequences
the lost, stolen or misappropriated
instrument after notification in accordance with

5.
If the payment service provider does not provide appropriate
means for the notification at all times of a lost, stolen or
misappropriated payment instrument, as required under Arti-
cle 57(1)(c),
the payer shall not be liable for the financial
consequences resulting from use of that payment instrument,
except where he has acted fraudulently.

Article 62

Refunds for payment transactions initiated by or through a
payee

1. Member States shall ensure that a payer is entitled to a
refund from his payment service provider of an authorised
payment transaction initiated by or through a payee which has
already been executed, if the following conditions are met:

(a)

the authorisation did not specify the exact amount of the
payment transaction when the authorisation was made; and

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(b)

the payment

transaction exceeded the
the amount of
amount the payer could reasonably have expected taking
into account his previous spending pattern, the conditions
in his framework contract and relevant circumstances of
the case.

CHAPTER 3

Execution of payment transactions

S e c t i o n 1

At the payment service provider's request, the payer shall provide
factual elements relating to such conditions.

P a y m e n t o r d e r s a n d a m o u n t s t r a n s f e r r e d

The refund consists of the full amount of the executed payment
transaction.

For direct debits the payer and his payment service provider may
agree in the framework contract that the payer is entitled to a
refund from his payment service provider even though the
conditions for refund in the first subparagraph are not met.

the purposes of point

the first
(b) of
for
2. However,
subparagraph of paragraph 1,
the payer may not rely on
currency exchange reasons if the reference exchange rate agreed
with his payment service provider in accordance with Arti-
cles 37(1)(d) and 42(3)(b) was applied.

3.
It may be agreed in the framework contract between the
payer and the payment service provider that the payer has no
right to a refund where he has given his consent to execute the
payment transaction directly to his payment service provider
and, where applicable,
information on the future payment
transaction was provided or made available in an agreed manner
to the payer for at least four weeks before the due date by the
payment service provider or by the payee.

Article 63

Requests for refunds for payment transactions initiated by
or through a payee

1. Member States shall ensure that the payer can request the
refund referred to in Article 62 of an authorised payment
transaction initiated by or through a payee for a period of eight
weeks from the date on which the funds were debited.

2. Within ten business days of receiving a request for a refund,
the payment service provider shall either refund the full amount
of the payment transaction or provide justification for refusing
the refund, indicating the bodies to which the payer may refer the
matter in accordance with Articles 80 to 83 if he does not accept
the justification provided.

The payment service provider's right under the first subpara-
graph to refuse the refund shall not apply in the case set out in
the fourth subparagraph of Article 62(1).

Article 64

Receipt of payment orders

1. Member States shall ensure that the point in time of receipt
is the time when the payment order transmitted directly by the
payer or indirectly by or through a payee is received by the
payer's payment service provider. If the point in time of receipt is
not on a business day for the payer's payment service provider,
the payment order shall be deemed to have been received on the
following business day. The payment service provider may
establish a cut-off time near the end of a business day beyond
which any payment order received shall be deemed to have been
received on the following business day.

If the payment service user initiating a payment order and
2.
his payment service provider agree that execution of the payment
order shall start on a specific day or at the end of a certain period
or on the day on which the payer has set funds at his payment
service provider's disposal, the point in time of receipt for the
purposes of Article 69 is deemed to be the agreed day. If the
agreed day is not a business day for the payment service provider,
the payment order received shall be deemed to have been
received on the following business day.

Article 65

Refusal of payment orders

1. Where the payment service provider refuses to execute a
payment order, the refusal and, if possible, the reasons for it and
the procedure for correcting any factual mistakes that led to the
refusal shall be notified to the payment service user, unless
prohibited by other relevant Community or national legislation.

The payment service provider shall provide or make available the
notification in an agreed manner at the earliest opportunity, and
in any case, within the periods specified in Article 69.

the
The framework contract may include a condition that
payment service provider may charge for such a notification if
the refusal is objectively justified.

In cases where all the conditions set out in the payer's
2.
framework contract are met,
service
provider shall not refuse to execute an authorised payment
order irrespective of whether the payment order is initiated by a
payer or by or through a payee, unless prohibited by other
relevant Community or national legislation.

the payer's payment

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For the purposes of Articles 69 and 75 a payment order of
3.
which execution has been refused shall be deemed not to have
been received.

S e c t i o n 2

E x e c u t i o n t i m e a n d v a l u e d a t e

Article 66

Irrevocability of a payment order

Article 68

Scope

1. Member States shall ensure that the payment service user
may not revoke a payment order once it has been received by the
payer's payment service provider, unless otherwise specified in
this Article.

1. This Section shall apply to:

(a)

payment transactions in euro;

2. Where the payment transaction is initiated by or through the
payee,
the payer may not revoke the payment order after
transmitting the payment order or giving his consent to execute
the payment transaction to the payee.

3. However, in the case of a direct debit and without prejudice
to refund rights the payer may revoke the payment order at the
latest by the end of the business day preceding the day agreed for
debiting the funds.

In the case referred to in Article 64(2) the payment service
4.
user may revoke a payment order at the latest by the end of the
business day preceding the agreed day.

5. After the time limits specified in paragraphs 1 to 4, the
payment order may be revoked only if agreed between the
payment service user and his payment service provider. In the
case referred to in paragraphs 2 and 3, the payee's agreement
shall also be required. If agreed in the framework contract, the
payment service provider may charge for revocation.

(b)

national payment
Member State outside the euro area concerned; and

transactions in the currency of

the

(c)

payment transactions involving only one currency conver-
sion between the euro and the currency of a Member State
outside the euro area, provided that the required currency
conversion is carried out in the Member State outside the
in the case of cross-border
euro area concerned and,
payment transactions, the cross-border transfer takes place
in euro.

2. This Section shall apply to other payment transactions,
unless otherwise agreed between the payment service user and
his payment service provider, with the exception of Article 73,
which is not at the disposal of the parties. However, when the
payment service user and his payment service provider agree on
a longer period than those laid down in Article 69, for intra-
Community payment transactions such period shall not exceed 4
business days following the point in time of receipt in accordance
with Article 64.

Article 69

Article 67

Payment transactions to a payment account

Amounts transferred and amounts received

1. Member States shall require the payment service provider of
the payer, the payment service provider of the payee and any
intermediaries of the payment service providers to transfer the
full amount of
transaction and refrain from
the payment
deducting charges from the amount transferred.

2. However, the payee and his payment service provider may
agree that the payment service provider deduct its charges from
the amount transferred before crediting it to the payee. In such a
case, the full amount of the payment transaction and charges
shall be separated in the information given to the payee.

the amount of

1. Member States shall require the payer's payment service
provider to ensure that, after the point in time of receipt in
accordance with Article 64,
the payment
transaction is credited to the payee's payment service provider's
account at the latest by the end of the next business day. Until
1 January 2012, a payer and his payment service provider may
agree on a period no longer than three business days. These
periods may be extended by a further business day for paper-
initiated payment transactions.

2. Member States shall require the payment service provider of
the payee to value date and make available the amount of the
payment transaction to the payee's payment account after the
payment service provider has received the funds in accordance
with Article 73.

If any charges other than those referred to in paragraph 2 are
3.
deducted from the amount transferred, the payment service
provider of the payer shall ensure that the payee receives the full
amount of the payment transaction initiated by the payer. In
cases where the payment transaction is initiated by or through
the payee, his payment service provider shall ensure that the full
amount of the payment transaction is received by the payee.

3. Member States shall require the payee's payment service
provider to transmit a payment order initiated by or through the
payee to the payer's payment service provider within the time
limits agreed between the payee and his payment service
provider, enabling settlement, as far as direct debit is concerned,
on the agreed due date.

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Article 70

Absence of payee's payment account with the payment
service provider

Where the payee does not have a payment account with the
payment service provider, the funds shall be made available to
the payee by the payment service provider who receives the
funds for the payee within the period specified in Article 69.

If the unique identifier provided by the payment service user
2.
is incorrect, the payment service provider shall not be liable
under Article 75 for non-execution or defective execution of the
payment transaction.

However
the payer's payment service provider shall make
reasonable efforts to recover the funds involved in the payment
transaction.

Article 71

Cash placed on a payment account

If agreed in the framework contract,
provider may charge the payment service user for recovery.

the payment service

Where a consumer places cash on a payment account with that
payment service provider in the currency of
that payment
account, the payment service provider shall ensure that the
amount is made available and value dated immediately after the
point of time of the receipt of the funds. Where the payment
service user is not a consumer, the amount shall be made
available and value dated at the latest on the next business day
after the receipt of the funds.

Article 72

National payment transactions

For national payment transactions, Member States may provide
for shorter maximum execution times than those provided for in
this Section.

Article 73

Value date and availability of funds

1. Member States shall ensure that the credit value date for the
payee's payment account is no later than the business day on
which the amount of the payment transaction is credited to the
payee's payment service provider's account.

The payment service provider of the payee shall ensure that the
amount of the payment transaction is at the payee's disposal
immediately after that amount is credited to the payee's payment
service provider's account.

2. Member States shall ensure that the debit value date for the
payer's payment account is no earlier than the point in time at
which the amount of the payment transaction is debited to that
payment account.

3.
If the payment service user provides information additional
to that specified in Articles 37(1)(a) or 42(2)(b), the payment
service provider shall be liable only for the execution of payment
transactions in accordance with the unique identifier provided by
the payment service user.

Article 75

Non-execution or defective execution

1. Where a payment order is initiated by the payer, his payment
service provider shall, without prejudice to Article 58, Article 74
(2) and (3), and Article 78, be liable to the payer for correct
execution of the payment transaction, unless he can prove to the
to the payee's payment service
payer and, where relevant,
provider that the payee's payment service provider received the
amount of the payment transaction in accordance with Article 69
(1), in which case, the payee's payment service provider shall be
liable to the payee for the correct execution of the payment
transaction.

Where the payer's payment service provider is liable under the
first subparagraph, he shall without undue delay refund to the
payer the amount of the non-executed or defective payment
transaction and, where applicable, restore the debited payment
account to the state in which it would have been had the
defective payment transaction not taken place.

Where the payee's payment service provider is liable under the
first subparagraph, he shall immediately place the amount of the
the payee's disposal and, where
payment
applicable, credit
to the payee's
payment account.

the corresponding amount

transaction at

S e c t i o n 3

L i a b i l i t y

Article 74

Incorrect unique identifiers

In the case of a non-executed or defectively executed payment
transaction where the payment order is initiated by the payer, his
payment service provider shall regardless of liability under this
paragraph, on request, make immediate efforts to trace the
payment transaction and notify the payer of the outcome.

1.
If a payment order is executed in accordance with the unique
identifier, the payment order shall be deemed to have been
executed correctly with regard to the payee specified by the
unique identifier.

2. Where a payment order is initiated by or through the payee,
his payment
shall, without prejudice to
Article 58, Article 74(2) and (3), and Article 78, be liable to
the payee for correct transmission of the payment order to the

service provider

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the payer in accordance with
payment service provider of
Article 69(3). Where the payee's payment service provider is
liable under this subparagraph, he shall immediately re-transmit
the payment order in question to the payment service provider of
the payer.

In addition, the payment service provider of the payee shall,
without prejudice to Article 58, Article 74(2) and (3), and
Article 78, be liable to the payee for handling the payment
transaction in accordance with its obligations under Article 73.
Where the payee's payment service provider is liable under this
subparagraph, he shall ensure that the amount of the payment
transaction is at the payee's disposal
immediately after that
amount is credited to the payee's payment service provider's
account.

In the case of a non-executed or defectively executed payment
transaction for which the payee's payment service provider is not
liable under the first and second subparagraphs, the payer's
payment service provider shall be liable to the payer. Where the
payer's payment service provider
is so liable he shall, as
appropriate and without undue delay, refund to the payer the
amount of the non-executed or defective payment transaction
and restore the debited payment account to the state in which it
would have been had the defective payment transaction not
taken place.

In the case of a non-executed or defectively executed payment
transaction where the payment order is initiated by or through
the payee, his payment service provider shall, regardless of
liability under this paragraph, on request, make immediate
efforts to trace the payment transaction and notify the payee of
the outcome.

In addition, payment service providers shall be liable to their
3.
respective payment service users for any charges for which they
are responsible, and for any interest to which the payment service
user is subject as a consequence of non-execution or defective
execution of the payment transaction.

Article 76

Additional financial compensation

Any financial compensation additional
to that provided for
under this Section may be determined in accordance with the law
applicable to the contract concluded between the payment
service user and his payment service provider.

Article 77

Right of recourse

and/or intermediaries and the law applicable to the agreement
concluded between them.

Article 78

No liability

Liability under Chapter 2 and 3 shall not apply in cases of
abnormal and unforeseeable circumstances beyond the control
of the party pleading for the application of those circumstances,
the consequences of which would have been unavoidable despite
all efforts to the contrary, or where a payment service provider is
bound by other
legal obligations covered by national or
Community legislation.

CHAPTER 4

Data protection

Article 79

Data protection

Member States shall permit the processing of personal data by
payment systems and payment service providers when this is
necessary to safeguard the prevention,
investigation and
detection of payment fraud. The processing of such personal
data shall be carried out in accordance with Directive 95/46/EC.

CHAPTER 5

Out-of-court complaint and redress procedures for the
settlement of disputes

S e c t i o n 1

C o m p l a i n t p r o c e d u r e s

Article 80

Complaints

service users and other

1. Member States shall ensure that procedures are set up which
allow payment
interested parties,
including consumer associations, to submit complaints to the
competent authorities with regard to payment service providers'
alleged infringements of
law
implementing the provisions of this Directive.

the provisions of national

2. Where appropriate and without prejudice to the right to
bring proceedings before a court in accordance with national
procedural law, the reply from the competent authorities shall
inform the complainant of the existence of the out-of-court
complaint and redress procedures set up in accordance with
Article 83.

1. Where the liability of a payment service provider under
Article 75 is attributable to another payment service provider or
to an intermediary, that payment service provider or inter-
mediary shall compensate the first payment service provider for
any losses incurred or sums paid under Article 75.

Further

financial compensation may be determined in
2.
accordance with agreements between payment service providers

Article 81

Penalties

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

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2. Member States shall notify the Commission of the rules
referred to in paragraph 1 and of the competent authorities
referred to in Article 82 by 1 November 2009 and shall notify it
without delay of any subsequent amendment affecting them.

Article 82

Competent authorities

1. Member States shall take all the measures necessary to
ensure that the complaints procedures and penalties provided for
in Articles 80(1) and 81(1) respectively are administered by the
authorities empowered to ensure compliance with the provisions
of national law adopted pursuant to the requirements laid down
in this Section.

2.
In the event of infringement or suspected infringement of
the provisions of national law adopted pursuant to Titles III and
IV, the competent authorities referred to in paragraph 1 shall be
those of
the payment service
provider, except for agents and branches conducted under the
right of establishment where the competent authorities shall be
those of the host Member State.

the home Member State of

S e c t i o n 2

O u t - o f - c o u r t r e d r e s s p r o c e d u r e s

Article 83

Out-of-court redress

(b)

(c)

changing the definition of micro enterprise within the
meaning of Article 4(26) in accordance with an amend-
ment of Recommendation 2003/361/EC;

updating the amounts specified in Articles 26(1) and 61(1)
in order to take account of inflation and significant market
developments.

Article 85

Committee

1. The Commission shall be assisted by a Payments Committee.

2. Where reference is made to this paragraph, Article 5a(1) to
(4) and Article 7 of Decision 1999/468/EC shall apply, having
regard to the provisions of Article 8 thereof.

TITLE VI

FINAL PROVISIONS

Article 86

Full harmonisation

1. Without prejudice to Article 30(2), Article 33, Article 34(2),
Article 45(6), Article 47(3), Article 48(3), Article 51(2),
Article 52(3), Article 53(2), Article 61(3), and Articles 72 and
88 insofar as this Directive contains harmonised provisions,
Member States shall not maintain or introduce provisions other
than those laid down in this Directive.

1. Member States shall ensure that adequate and effective out-
of-court complaint and redress procedures for the settlement of
disputes between payment service users and their payment
service providers are put in place for disputes concerning rights
and obligations arising under this Directive, using existing bodies
where appropriate.

2. Where a Member State makes use of any of the options
inform the Commission
referred to in paragraph 1,
thereof as well as of any subsequent changes. The Commission
shall make the information public on a web-site or other easily
accessible means.

it shall

2.
In the case of cross-border disputes, Member States shall
make sure that those bodies cooperate actively in resolving them.

TITLE V

3. Member States shall ensure that payment service providers
do not derogate, to the detriment of payment service users, from
the provisions of national law implementing or corresponding to
provisions of this Directive except where explicitly provided for
therein.

IMPLEMENTING MEASURES AND PAYMENTS COMMITTEE

However, payment service providers may decide to grant more
favourable terms to payment service users.

Article 84

Implementing measures

Article 87

Review

technological

to take account of

In order
and market
developments in payment services and to ensure the uniform
application of this Directive, the Commission may, in accordance
with the regulatory procedure with scrutiny referred to in
Article 85(2), adopt implementing measures designed to amend
non-essential elements of
this Directive and relating to the
following:

(a)

adapting the list of activities in the Annex, in accordance
with Articles 2 to 4 and 16;

No later than 1 November 2012, the Commission shall present
to the European Parliament, the Council, the European Economic
and Social Committee and the European Central Bank a report
on the implementation and impact of this Directive, in particular
on:

— the possible need to extend the scope of the Directive to
payment transactions in all currencies and to payment
the payment service
transactions where only one of
providers is located in the Community,

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— the application of Articles 6, 8 and 9 concerning prudential
requirements for payment
in particular as
regards own funds requirements and safeguarding require-
ments (ringfencing),

institutions,

— the possible impact of the granting of credit by payment
institutions related to payments services, as set out in
Article 16(3),

— the possible impact of the authorisation requirements of
payment
institutions on competition between payment
institutions and other payment service providers as well as
on barriers to market entry by new payment service
providers,

— the application of Articles 34 and 53 and the possible need
to revise the scope of this Directive with respect to low
value payment instruments and electronic money, and

4. Without prejudice to Directive 2005/60/EC or other
relevant Community legislation, Member States may allow
natural or legal persons who have commenced the activities of
payment institutions within the meaning of this Directive, in
accordance with the national law in force before 25 December
2007 and who are eligible for waiver under Article 26 to
continue those activities within the Member State concerned for
a transitional period not longer than 3 years without being
waived in accordance with Article 26 and entered into the
register provided for in Article 13. Any such persons who are not
waived within this period shall be prohibited in accordance with
Article 29 to provide payment services.

Article 89

Amendment of Directive 97/7/EC

Article 8 of Directive 97/7/EC shall be deleted.

Article 90

— the application and functioning of Articles 69 and 75 for

Amendments of Directive 2002/65/EC

all kinds of payment instruments,

accompanied, where appropriate, by a proposal for its revision.

Directive 2002/65/EC is hereby amended as follows:

1.

in Article 4 the following paragraph shall be added:

Article 88

Transitional provision

1. Without prejudice to Directive 2005/60/EC or other
relevant Community legislation, Member States shall allow legal
persons who have commenced before 25 December 2007 the
activities of payment institutions within the meaning of this
Directive,
law in force to
continue those activities within the Member State concerned
until 30 April 2011, without authorisation under Article 10.
Any such persons who have not been granted authorisation
within this period shall be prohibited in accordance with
Article 29 to provide payment services.

in accordance with the national

that Directive in accordance with national

an exemption to the
2. Notwithstanding paragraph 1,
authorisation requirement under Article 10 shall be granted to
financial institutions that have commenced activities listed in
point 4 of Annex I to Directive 2006/48/EC and meet the
conditions of point (e) of the first subparagraph of Article 24(1),
law before
of
25 December 2007. However, they shall notify the competent
authorities of the home Member State of these activities by
25 December 2007. Furthermore, this notification shall include
the information demonstrating that they have complied with
Article 5(a), (d), (g) to (i), (k) and (l) of this Directive. Where the
competent authorities are satisfied that those requirements are
institutions concerned shall be
complied with, the financial
registered in accordance with Article 13 of
this Directive.
Member States may allow their competent authorities to exempt
those
requirements under
Article 5.

institutions

from the

financial

3. Member States may provide that legal persons referred to in
paragraph 1 shall be automatically granted authorisation and
entered into the register provided for in Article 13 if
the
competent authorities already have evidence that the require-
ments laid down in Articles 5 and 10 are complied with. The
competent authorities shall inform the entities concerned before
the authorisation is granted.

services

‘5. Where Directive 2007/64/EC of the European Parlia-
the Council of 13 November 2007 on
ment and of
payment
is also
applicable, the information provisions under Article 3(1)
of this Directive, with the exception of paragraphs (2)(c) to
(g), (3)(a), (d) and (e), and (4)(b), shall be replaced with
Articles 36, 37, 41 and 42 of that Directive.

internal market (*)

in the

(*) OJ L 319, 5.12.2007, p. 1’;

2.

Article 8 shall be deleted.

Article 91

Amendments of Directive 2005/60/EC

Directive 2005/60/EC is hereby amended as follows:

1.

Article 3(2)(a) shall be replaced by the following:

‘(a)

an undertaking other than a credit institution which
carries out one or more of the activities listed in
points 2 to 12 and 14 of Annex I to Directive 2006/
48/EC, including the activities of currency exchange
offices (bureaux de change)’;

2.

in Article 15 paragraphs 1 and 2 shall be replaced by the
following:

‘1. Where a Member State permits credit and financial
institutions referred to in Article 2(1)(1) or (2) situated in its
territory to be relied on as a third party domestically, that
in any case permit institutions and
Member State shall
persons referred to in Article 2(1) situated in its territory to
recognise and accept, in accordance with Article 14, the
outcome of the customer due diligence requirements laid
down in Article 8(1)(a) to (c), carried out in accordance
with this Directive by an institution referred to in Article 2
(1)(1) or (2) in another Member State, with the exception of

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Official Journal of the European Union

L 319/35

institutions as
currency exchange offices and payment
defined in Article 4(4) of Directive 2007/64/EC of the
European Parliament and of the Council of 13 November
2007 on payment services in the internal market (*), which
mainly provide the payment service listed in point 6 of the
Annex to that Directive, including natural and legal persons
benefiting from a waiver under Article 26 of that Directive,
and meeting the requirements laid down in Articles 16 and
18 of this Directive, even if the documents or data on
which these requirements have been based are different to
those required in the Member State to which the customer
is being referred.

2. Where a Member State permits currency exchange
offices referred to in Article 3(2)(a) and payment institu-
tions as defined in Article 4(4) of Directive 2007/64/EC,
which mainly provide the payment service listed in point 6
of the Annex to that Directive, situated in its territory to be
relied on as a third party domestically, that Member State
shall in any case permit them to recognise and accept, in
accordance with Article 14 of this Directive, the outcome
of the customer due diligence requirements laid down in
Article 8(1)(a) to (c), carried out in accordance with this
Directive by the same category of institution in another
Member State and meeting the requirements laid down in
Articles 16 and 18 of this Directive, even if the documents
or data on which these requirements have been based are
different to those required in the Member State to which the
customer is being referred.

(*) OJ L 319, 5.12.2007, p. 1’;

3.

the second sentence of Article 36(1) shall be deleted.

2.

point 5 shall be replaced by the following:

‘(5)

Issuing and administering other means of payment
(e.g. travellers' cheques and bankers' drafts) insofar as
this activity is not covered by point 4’.

Article 93

Repeal

Directive 97/5/EC shall be repealed with effect from 1 November
2009.

Article 94

Transposition

1. Member States shall bring into force the laws, regulations
and administrative provisions necessary to comply with this
Directive before 1 November 2009. They shall forthwith inform
the Commission thereof.

When they are adopted by Member States, those measures shall
contain a reference to this Directive or shall be accompanied by
such reference on the occasion of their official publication. The
methods of making such reference shall be laid down by Member
States.

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

Article 95

Entry into force

Article 92

Amendments of Directive 2006/48/EC

This Directive shall enter into force on the 20th day following its
publication in the Official Journal of the European Union.

Annex I to Directive 2006/48/EC is hereby amended as follows:

Article 96

Addressees

1.

point 4 shall be replaced by the following:

This Directive is addressed to the Member States.

‘(4) Payment services as defined in Article 4(3) of Directive
2007/64/EC of the European Parliament and of the
Council of 13 November 2007 on payment services
in the internal market (*)

(*) OJ L 319, 5.12.2007, p. 1’;

Done at Strasbourg, 13 November 2007.

For the European Parliament

For the Council

The President

The President

H.-G. PÖTTERING

M. LOBO ANTUNES

L 319/36

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Official Journal of the European Union

5.12.2007

ANNEX

PAYMENT SERVICES (DEFINITION 3 IN ARTICLE 4)

1.

2.

3.

Services enabling cash to be placed on a payment account as well as all the operations required for operating a
payment account.

Services enabling cash withdrawals from a payment account as well as all the operations required for operating a
payment account.

Execution of payment transactions, including transfers of funds on a payment account with the user's payment service
provider or with another payment service provider:

— execution of direct debits, including one-off direct debits,

— execution of payment transactions through a payment card or a similar device,

— execution of credit transfers, including standing orders.

4.

Execution of payment transactions where the funds are covered by a credit line for a payment service user:

— execution of direct debits, including one-off direct debits,

— execution of payment transactions through a payment card or a similar device,

5.

6.

7.

— execution of credit transfers, including standing orders.

Issuing and/or acquiring of payment instruments.

Money remittance.

Execution of payment transactions where the consent of the payer to execute a payment transaction is given by means
of any telecommunication, digital or IT device and the payment is made to the telecommunication, IT system or
network operator, acting only as an intermediary between the payment service user and the supplier of the goods and
services.