Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL On the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features
Date: 2013-05-08
Institutions: European Commission
Subjects: account, bank charges, banking system, consumer protection, credit transfer, electronic money, freedom to provide services, intra-EU payment, single market

EUROPEAN 
COMMISSION 

Brussels, 8.5.2013  
COM(2013) 266 final 

2013/0139 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

(Text with EEA relevance) 

{SWD(2013) 164 final} 
{SWD(2013) 165 final} 

EN 

   EN 

 
 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

1.1. 

Grounds for and objectives of the proposal 

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

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

The SMA II, adopted on 3 October 2012, identified a legislative initiative on bank accounts in 
the EU as one of the twelve priority actions to generate real effects on the ground and make 
citizens  and  businesses  confident  to  use  the  single  market  to  their  advantage.1  Its  aim  is  to 
"give  all  EU  citizens  access  to  a  basic  payment  account,  ensure  bank  account  fees  are 
transparent  and  comparable,  and  make  switching  bank  accounts  easier".2  Furthermore,  the 
Commission announced proposals in the area of transparency and comparability of bank fees 
and bank account switching as part of the Commission's Work Programme for 2013.3 

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

While measures to complete the single market for financial services should generate growth 
and  enhance  business  opportunities  for  providers  of  financial  services,  their  impact  on 
consumers is also of vital importance. At present, the opacity of payment account fees make it 
difficult  for  consumers  to  make  informed  choices.  Even  where  fees  are  comparable,  the 
process for switching from one payment account to another is often lengthy and complex. As 
a result, consumers still show a very high degree of inertia with respect to payment accounts. 

1 
2 
3 

http://ec.europa.eu/commission_2010-2014/barnier/headlines/news/2012/10/20121003_en.htm 
"Single Market Act II - Together for new growth", COM(2012) 573 of 3 October 2012, page 16. 
"Commission Work Programme 2013", COM(2012) 629 of 23 October 2012, Annex I, page 5. 

EN 

2 

   EN 

                                                 
A  survey  on  retail  financial  services  conducted  in  20124  showed  that  a  large  share  of 
consumers tends to remain attached to their payment providers. Only 16% of the respondents 
who already held a financial product had opened a new payment account in the previous five 
years. Further, only 3% of the respondents declared having opened a payment account cross-
border. Consumers were dissuaded from purchasing retail financial products cross-border by 
unclear information (21%), lack of clarity of the rights available to the consumer (18%) or the 
process being too complicated (15%). Consumer inertia makes it more difficult for financial 
service  providers  to  attract  new  clients  and  may  make  the  entering  of  new  markets  less 
attractive,  in  particular  in  a  cross-border  context.  In  turn,  this  raises  prices  and  lowers  the 
quality of services provided to the consumers.  

The impact of EU measures aimed at ensuring a sound and robust framework to fully develop 
the  benefits  of  the  internal  market  for  financial  services  is  reduced  by  the  fact  that  a  large 
portion  of  the  EU  population  is  still  unbanked.  The  World  Bank  estimated  that  about  58 
million EU consumers do not have a payment account5 and approximately 25 million of them 
would like to open one. Moreover, surveys and consultations undertaken by the Commission 
and  complaints  from  consumers  demonstrate  that  many  citizens  have  faced  difficulties  in 
opening  a  payment  account  due  to  their  lack  of  a  permanent  address  in  the  Member  State 
where the payment service provider is located. This situation also affects a large number of 
EU consumers living in another Member State (12.3 million people in 2010). All these factors 
negatively  impact  upon  consumers'  ability  to  obtain  payment  accounts,  especially  cross-
border. As noted in the recently adopted package on social investment, payment accounts are 
a vital tool for people to participate in the economy and society6. 

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

As  payment  accounts  are  the  financial  services  product  most  likely  to  be  purchased  cross-
border,  identifying  adequate  solutions  to  the  problems  outlined  above  is  vital.  The 

4 
5 
6 

7 

Eurobarometer 
World Bank report 
Commission communication 'Towards Social investment for Growth and Cohesion', COM (2013)83 of 
20 February 2013  
For  example,  in  Ireland  only  40%  of  social  benefits  payments  are  made  through  a  payment  account, 
while  another  52%  by  a  post  office,  see  Strategy  for  Financial  Inclusion,  Steering  Group  on  Financial 
Irish Department of Finance, June 2011, p. 14, 
Inclusion, 
http://www.finance.gov.ie/documents/publications/reports/2011/Fininclusreport2011.pdf.  Also, 
it  has  been 
estimated  that  that  "the  use  of  non-electronic  payments  systems  costs  the  economy  approximately  €1 
billion each year." 2007 survey of the members of the Irish Payment Services Organisation [….], p. 18. 
Similar  conclusions  were  reached  in  Germany,  where  a  report  on  financial  inclusion  prepared  by  the 
German Bundestag confirmed high administrative costs incurred as result of payments of benefits made 
through  non-electronic  means  by  the  governmental  agencies,  see  Bericht  der  Bundesregierung  zur 
Umsetzung  der  Empfehlungen  des  Zentralen  Kreditausschusses  zum  Girokonto  für  jedermann,  Drucksache 
17/8312, German Bundestag, 27.12.2011, p. 7.  

EN 

3 

   EN 

                                                 
consequences  of  inaction  are  potentially  serious,  including  the  inhibited  development  of  a 
fully-functioning  internal  market  with  significant  impacts  upon  payment  service  providers, 
consumers, and the wider economy. Furthermore, the financial crisis has brought to light the 
importance  of  effective  measures  to  restore  a  high  level  of  consumer  confidence  towards 
financial institutions.  

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

1.2. 

Existing provisions in the area of the proposal 

Transparency and comparability of payment account fees 

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

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

Payment account switching 

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

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

Access to a payment account with basic features 

EN 

4 

   EN 

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

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

1.3. 

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

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

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

The proposal is consistent with the Union’s policy in the fight against money laundering and 
terrorism  financing.  Consumers  will  still  need  to  be  able  to  satisfy  identity  requirements 
before  opening  an  account,  as  required  by  the  Third  Anti-Money  Laundering  Directive10. 
However, it will no longer be possible to refuse the opening of a payment account by alleging 
anti-money laundering concerns based on the mere fact that the consumer is not a resident of 
the Member State where he or she wants to open an account. 

8 
9 
10 

2011/442/EU: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32011H0442:EN:NOT 
http://ec.europa.eu/internal_market/finservices-retail/docs/inclusion/swd_2012_249_en.pdf 
Directive 2005/60/EC of the European Parliament and of the Council on the prevention of the use of the 
financial system for the purpose of money laundering and terrorist financing, 26.10.2005. 

EN 

5 

   EN 

                                                 
2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

2.1. 

Consultation of interested parties 

Consultation methods, main sectors targeted and general profile of respondents 

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

Summary of responses and how they have been taken into account 

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

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

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

EN 

6 

   EN 

Consequently,  they  argued  in  favour  of  legislative  measures  at  EU  level,  albeit  with  some 
flexibility for national circumstances. 

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

2.2. 

Impact Assessment 

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

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

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

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

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

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

EN 

7 

   EN 

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

With respect to access, the impact assessment concluded that it is necessary to ensure the right 
of  access  to  a  payment  account  with  basic  features  for  every  EU  consumer  by  means  of 
binding  European  legislation.  58  million  EU  consumers  do  not  have  a  payment  account. 
Several factors were identified as the main drivers for this, including the lack of a consistent 
regulatory  framework  across  the  EU,  refusal  based  on  nationality  or  lack  of  residence,  the 
high price of the account as well as consumers' lack of financial education and awareness and 
low confidence in the financial system.  
The impact assessment considered a range of policy options and sub-options.11 It concluded 
that the most appropriate policy measure to address the issue identified is to impose a legal 
obligation  on  Member  States  to  ensure  the  right  of  access  to  a  payment  account  with  basic 
features for every consumer. The features of basic payment accounts should be enlarged from 
those  contained  in  the  Recommendation  to  include  internet  banking  and  online  purchasing. 
The  new  measures  will  improve  the  availability,  accessibility,  and  affordability  of  basic 
payment  services.  This,  in  turn,  is  expected  to  substantially  reduce  consumer  detriment, 
enhance  financial  and  social  inclusion  and  consumer  confidence,  encourage  cross-border 
mobility  and  promote  the  full  participation  of  the  greatest  possible  number  of  consumers  in 
the internal market.  

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

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Legal basis 

The proposal is based on Article 114 of the Treaty on the Functioning of the European Union. 
As  explained  above,  by  setting  up  an  EU  level  framework  in  the  fields  covered  by  the 
proposal, it aims to remove the remaining barriers to the free movement of payment services 
and, more broadly, to the free movement of goods, persons, services and capital for which a 
fully integrated and developed single market for payment services is vital. The proposal also 

11 

Commission Staff Working Paper (IA paragraph 7 page 56) 

EN 

8 

   EN 

                                                 
prevents any further fragmentation of the single market which could occur if Member States 
were to take diverging and inconsistent regulatory actions in this field.  

3.2. 

Subsidiarity principle 

According to the principle of subsidiarity, EU action may only be taken if the envisaged aims 
cannot be achieved by Member States alone. EU intervention is needed to improve the proper 
functioning of the internal market and avoid the distortion of competition in the field of retail 
banking.  
Different regulatory frameworks, or the lack thereof, raise barriers to entry across borders. An 
EU initiative will better address factors that prevent the pursuit of business or raise the cost of 
doing  business  in  another  Member  State  relative  to  the  costs  faced  by  domestic  providers. 
Credit  institutions  that  seek  to  operate  across  borders  not  only  need  to  meet  differing 
requirements but are also prevented from making full use of economies of scale in developing 
processes and in operations in areas such as back office activities.  
Low customer mobility in general and inefficient switching mechanisms in particular, create 
obstacles to market entrants gaining new clients. Inaction or action from Member States alone 
is  likely  to  result  in  different  sets  of  rules,  leading  to  uncompetitive  markets  and  unequal 
levels of consumer protection in the EU. However, common criteria established at EU level 
for  the  functioning  of  the  retail  banking  sector  will  provide  consumers  with  the  necessary 
information  required  to  make  informed  choices.  This,  in  turn,  will  contribute  to  the 
strengthening  of  competition  and  to  the  efficient  allocation  of  resources  within  the  EU 
financial retail market to the benefit of businesses and consumers.  

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

3.3. 

Proportionality principle 

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

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

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

Only binding legislation will ensure a level playing field throughout the EU, minimising costs 
and  maximising  the  scope  for  economies  of  scale  for  account  providers  seeking  to  operate 

EN 

9 

   EN 

cross-border.  Although  adopting  binding  legislation  imposes  an  implementation  burden  for 
stakeholders in terms of time and money, this burden will be similar to that incurred under a 
Recommendation or self-regulation, if properly applied.  

3.4. 

Choice of instrument 

Proposed instrument: Directive. 

The  attempts  to  address  the  issues  of  comparability  of  payment  account  fees  and  account 
switching through self-regulatory measures were largely unsuccessful. The implementation of 
the  Common  Principles  for  payment  account  switching  in  the  Member  States  was  mostly 
evidenced  to  be  unsatisfactory.  This  may,  to  a  large  degree,  be  the  result  of  the  lack  of 
monitoring and enforcement measures within a self-regulatory approach. The efforts made to 
develop, together with the industry, a self-regulatory initiative to increase the comparability of 
payment account fees did not lead to a successful outcome either. Self-regulation would not, 
therefore, be an effective solution.  
Compliance  with  the  Commission's  Recommendation  on  access  to  a  basic  payment  account 
was  also  largely  inadequate.  Only  three  Member  States  broadly  complied  with  it  and  more 
than half the Member States had no framework in place at all to promote the right of access. 
As with comparability and transparency and switching, a non-binding measure proved to be 
unsuccessful. 
The introduction of a binding measure is the most effective and efficient way of achieving the 
set objectives. Only a binding legislative instrument can guarantee that the policy options are 
introduced in all 27 Member States and that the rules are enforceable. A Directive allows for 
consideration  of  national  specificities  in  the  payment  account  market.  This  would  help  to 
ensure a level playing field for both consumers and businesses throughout the EU.  

4. 

BUDGETARY IMPLICATION 

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

5. 

OPTIONAL ELEMENTS 

5.1. 

Review/revision/sunset clause 

The proposal includes a review clause. 

5.2. 

European Economic Area 

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

5.3. 

Detailed explanation of the proposal  

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

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

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

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

Article  4  (Fee  information  document  and  glossary)  requires  Member  States  to  establish  the 
obligation  for  payment  service  providers  to  provide  consumers  with  the  list  of  the  most 

EN 

10 

   EN 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article  18  (Framework  contracts  and  termination)  recalls  that  Directive  2007/64/EC  is 
applicable to payment accounts with basic features. However it provides for a limited list of 

EN 

11 

   EN 

grounds that may justify the termination of the framework contract of a payment account with 
basic features by the payment service provider. 

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

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

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

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

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

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

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

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

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

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

EN 

12 

   EN 

2013/0139 (COD) 

Proposal for a 

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

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

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 
Having regard to the opinion of the European Economic and Social Committee12,  
Having regard to the opinion of the Committee of the Regions13,  
After consulting the European Data Protection Supervisor14,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

is  ensured.  Fragmentation  of 

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

internal  market 

is  detrimental 

the 

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

12 
13 
14 

OJ C , , p. . 
OJ C , , p. . 
OJ C xx, xx.xx.xxx, p. . 

EN 

13 

   EN 

                                                 
(3) 

(4) 

information  to  be  provided,  reduced  the  administrative  burden  and  generated  cost 
savings for payment service providers.  

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

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

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

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

(7) 

Transparency  and  comparability  of  fees  have  been  addressed  in  a  self-regulatory 
initiative,  initiated  by  the  banking  industry.  However,  no  final  agreement  was  found 
on these guidelines. As regards switching, the common principles established in 2008 
by  the  European  Banking  Industry  Committee  provide  a  model  mechanism  for 
switching between bank accounts offered by payment service providers located in the 
same  Member  State.  However,  given  their  non-binding  nature,  these  principles  have 
been applied in an inconsistent manner throughout the EU and with ineffective results. 
Moreover,  the  Common  Principles  only  address  bank  account  switching  at  national 

EN 

14 

   EN 

(8) 

level and do not address cross-border switching. Finally, as regards access to a basic 
payment  account,  the  Commission  Recommendation  2011/442/EU  of  18  July  2011 
invited Member States to take the necessary measures to ensure its application at the 
latest six months after its publication. To date, only few Member States comply with 
the main principles of the Recommendation.  

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

(9) 

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

(10)  The  definitions  contained  in  the  Directive  are  aligned  with  those  contained  in  other 
Union  legislation,  and  in  particular  those  of  Directive  2007/64/EC  and  those  of 
Regulation  (EU)  No  260/2012  of  the  European  Parliament  and  of  the  Council  of  14 
March 2012 establishing technical and business requirements for credit transfers and 
direct debits in euro and amending Regulation (EC) No 924/200915. 

(11) 

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

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

(13)  The fee terminology should be determined by national competent authorities, allowing 
for consideration of the specificities of local markets. To be considered representative, 
services should be subject to a fee at a minimum of one payment service provider in 

15 

OJ L 94, 30.3.2012, p. 22. 

EN 

15 

   EN 

                                                 
Member States. In addition, where possible, fee terminology should be standardised at 
EU  level,  thus  allowing  for  comparison  across  the  Union.  The  European  Banking 
Authority (EBA) should establish guidelines to assist Member States to determine the 
most representative payment services subject to a fee at national level.  

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

(15) 

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

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

(17) 

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

(18)  Comparison  websites  are  an  effective  means  for  consumers  to  assess  the  merits  of 
different payment account offers in a single space. They can provide the right balance 
between  the  need  for  information  to  be  clear  and  concise,  yet  complete  and 

EN 

16 

   EN 

(19) 

(20) 

comprehensive, by enabling users to obtain more detailed information where this is of 
interest  to  them.  They  can  also  reduce  search  costs  as  consumers  will  not  need  to 
collect information separately from payment service providers.  

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

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

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

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

(23)  Consumers  should  be  allowed  to  ask  the  receiving  payment  service  provider  to 
perform the switch of all or part of the recurring payments, as well as transferring the 
remaining balance, ideally within a single meeting with the receiving payment service 

EN 

17 

   EN 

provider.  To  this  end,  consumers  should  be  able  to  sign  one  authorisation  giving 
consent to the mentioned tasks. Before giving the authorisation the consumer should 
be informed of all the steps of the procedure necessary to complete the switch. 

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

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

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

(27)  Consumers  who  are  legally  resident  in  the  Union  and  who  do  not  hold  a  payment 
account in a certain Member State should be in a position to open and use a payment 
account  with  basic  features  in  that  Member  State.  In  order  to  ensure  the  widest 
possible access to such accounts, consumers should have access to them irrespective 
of their financial circumstances, such as unemployment or personal bankruptcy, and of 
their  place  of  residence.  Moreover,  the  right  to  access  a  payment  account  with  basic 
features in any Member State should be granted in conformity with the requirements 
set out in Directive 2005/60/EC of the European Parliament and of the Council of 26 
October 2005 on the prevention of the use of the financial system for the purpose of 
money laundering and terrorist financing16, in particular with regard to customer due 
diligence procedures.  

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

(29)  To  exercise  their  right  to  access  a  basic  payment  account,  consumers  should  not 
already hold a  payment account  in the  same territory. When it is not possible to use 
electronic  systems  to  establish  whether  or  not  a  consumer  already  holds  a  payment 

16 

OJ L 309, 25.11.2005, p. 15. 

EN 

18 

   EN 

                                                 
account,  payment  service  providers  should  accept  a  declaration  by  consumers  as  a 
reliable means of verifying that they do not already hold a payment account.  

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

(31) 

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

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

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

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

(35)  Consumers  should  have  access  to  effective  and  efficient  out-of-court  redress 
procedures  for  the  settlement  of  disputes  arising  out  of  rights  and  obligations 

EN 

19 

   EN 

established  under  this  Directive.  Such  access  is  already  ensured  by  Directive 
2013/…/EU  insofar  as  relevant  contractual  disputes  are  concerned.  However, 
consumers should also have access to out-of-court redress procedures in the event of -
pre-contractual  disputes  concerning  rights  and  obligations  established  by  this 
Directive, e.g. when they are denied access to a payment account with basic features. 
Compliance with the provisions laid down in this Directive requires the processing of 
consumers’ personal data. Such processing is governed by Directive 95/46/EC of the 
European  Parliament  and  of  the  Council  of  24  October  1995  on  the  protection  of 
individuals with regard to the processing of personal data and on the free movement of 
such data17. The present Directive should therefore comply with the rules established 
in Directive 95/46/EC and the national laws implementing them. 

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

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

(36) 

(37) 

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

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

(40)  This Directive respects fundamental rights and observes the principles recognised by 

the Charter of the Fundamental Rights of the European Union. 

17 

OJ L 281, 23.11.1995, p. 31. 

EN 

20 

   EN 

                                                 
(41) 

In  accordance  with  the  Joint  Political  Declaration  of  Member  States  and  the 
Commission of 28 September 2011 on explanatory documents18, Member States have 
undertaken  to  accompany,  in  justified  cases,  the  notification  of  their  transposition 
measures  with  one  or  more  documents  explaining  the  relationship  between  the 
components  of  a  Directive  and  the  corresponding  parts  of  national  transposition 
instruments. With regard to this Directive, the legislator considers the transmission of 
such documents to be justified.  

HAVE ADOPTED THIS DIRECTIVE: 

CHAPTER I 
SUBJECT MATTER, SCOPE AND DEFINITIONS 

Article 1 
Subject matter and scope 

1. 

2. 

3. 

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

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

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

4. 

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

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

Article 2 
Definitions 

(a) 

(b) 

(c) 

(d) 

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

‘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;  

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

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

(e) 

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

18 

OJ C 369, 17.12.2011, p. 14. 

EN 

21 

   EN 

                                                 
(f) 

(g) 

(h) 

(i) 

(j) 

(k) 

(l) 

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

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

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

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

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

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

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

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

(n) 

(o) 

(p) 

(q) 

(r) 

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

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

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

'Funds'  means  banknotes,  coins  and  scriptural  money  as  well  as  electronic 
money as defined in Article 2(2) of Directive 2009/110/EC19; 

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

19 

OJ L 267, 10.10.2009, p. 7. 

EN 

22 

   EN 

                                                 
CHAPTER II 
COMPARABILITY OF FEES CONNECTED WITH PAYMENT 
ACCOUNTS 

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

1. 

2. 

3. 

4. 

5. 

1. 

2. 

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

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

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

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

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

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

service; 

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

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

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

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

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

Article 4 
Fee information document and glossary  

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

Where one or more payment services referred to in paragraph 1 is offered as part of a 
package of financial services, the fee information document shall disclose which of 

EN 

23 

   EN 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

3. 

4. 

the  services  referred  to  in  paragraph  1  are  included  in  the  package,  the  fee  for  the 
entire package and the fee for any service that is not referred to in paragraph 1.  

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

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

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

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

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

Article 5 
Statement of fees 

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

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

(a) 

(b) 

(c) 

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

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

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

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

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

Article 6 
Contractual and commercial information 

1. 

Member  States  shall  ensure  that  in  their  contractual  and  commercial  information, 
payment service providers use, where relevant, the terms and definitions contained in 

EN 

24 

   EN 

2. 

1. 

2. 

3. 

4. 

5. 

1. 

the list of the most representative payment services referred to in Article 3, paragraph 
5.  

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

Article 7 
Comparison websites 

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

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

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

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

paragraph 5; 

(c)  provide up-to-date information; 

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

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

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

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

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

Article 8 
Packaged accounts 

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

EN 

25 

   EN 

2. 

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

CHAPTER III 
SWITCHING 

Article 9 
Provision of the switching service 

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

Article 10 
The switching service 

1. 

2. 

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

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

3. 

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

(a) 

(b) 

(c) 

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

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

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

(d)  where the transferring payment service provider does not provide a system for 
automated  redirection  of  the  standing  orders  and  direct  debits  to  the  account 

EN 

26 

   EN 

held  by  the  consumer  with  the  receiving  payment  service  provider,  cancel 
standing  orders  and  stop  accepting  direct  debits  on  the  date  specified  in  the 
authorisation; 

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

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

4. 

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

(a) 

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

(b) 

accept direct debits from the date specified in the authorisation; 

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

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

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

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

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

(a) 

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

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

5. 

6. 

EN 

27 

   EN 

(c) 

(d) 

(e) 

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

close the payment account;  

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

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

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

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

Article 11 
Fees connected with the switching service 

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

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

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

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

Article 12 
Financial loss for consumers  

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

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

7. 

8. 

9. 

1. 

2. 

3. 

4. 

1. 

2. 

EN 

28 

   EN 

Article 13 
Information about the switching service  

1. 

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

(a) 

(b) 

(c) 

(d) 

(e) 

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

the timeframe for completion of the respective steps;  

the fees, if any, charged for the switching process;  

any information that the consumer will be asked to provide;  

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

2. 

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

CHAPTER IV 
ACCESS TO PAYMENT ACCOUNTS 

Article 14 
Non-discrimination 

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

1. 

2. 

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

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

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

3. 

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

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

EN 

29 

   EN 

4. 

5. 

6. 

1. 

2. 

3. 

4. 

1. 

2. 

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

satisfied.  

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

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

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

Article 16 
Characteristics of a payment account with basic features 

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

(a) 

(b) 

(c) 

(d) 

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

services enabling money to be placed on a payment account; 

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

execution of the following payment transactions within the Union: 

(1)  direct debit; 

(2)  payment 

transactions 

through  a  payment  card, 

including  online 

payments; 

(3) 

credit transfers.  

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

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

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

Article 17 
Associated fees 

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

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

EN 

30 

   EN 

3. 

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

(a)  national income levels; 

(b) 

(c) 

average charges associated with payment accounts in that Member State; 

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

(d)  national consumer prices. 

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

Article 18 
Framework contracts and termination 

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

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

(a) 

(b) 

(c) 

(d) 

the consumer deliberately used the account for criminal activities; 

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

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

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

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

Article 19 
General information on payment accounts with basic features 

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

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

4. 

1. 

2. 

3. 

1. 

2. 

EN 

31 

   EN 

CHAPTER V 
COMPETENT AUTHORITIES AND ALTERNATIVE DISPUTE 
RESOLUTION 

Article 20 
Competent authorities 

1. 

2. 

3. 

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

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

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

Article 21 
Alternative Dispute Resolution 

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

CHAPTER VI 
SANCTIONS 

Article 22 
Administrative measures and sanctions 

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

CHAPTER VII 
FINAL PROVISIONS 

Article 23  
Delegated acts 

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

EN 

32 

   EN 

Article 24  
Exercise of the delegation 

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

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

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

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

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

Article 25 
Implementing acts 

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

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

1. 

2. 

3. 

4. 

5. 

1. 

2. 

Article 26 
Evaluation 

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

(a) 

(b) 

(c) 

(d) 

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

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

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

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

EN 

33 

   EN 

Article 27 
Review clause 

1. 

2. 

3. 

1. 

2. 

3. 

4. 

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

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

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

Article 28 
Transposition  

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

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

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

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

Article 29 

Entry into force 

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

Article 30 

Addressees 

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

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

EN 

34 

   EN