Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on payment services in the internal market and amending Directives 2002/65/EC, 2013/36/EU and 2009/110/EC and repealing Directive 2007/64/EC
Date: 2013-07-24
Institutions: European Commission
Subjects: consumer information, electronic commerce, electronic money, financial legislation, financial services, intra-EU payment, payment, single market













EUR-Lex - 52013PC0547 - EN











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52013PC0547

Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on payment services in the internal market and amending Directives 2002/65/EC, 2013/36/EU and 2009/110/EC and repealing Directive 2007/64/EC /* COM/2013/0547 final - 2013/0264 (COD) */









EXPLANATORY MEMORANDUM 
1.           Context of the proposal
Grounds for and objectives of the proposal 
The electronic payments market in Europe offers great
opportunities for innovation. Consumers have already significantly changed
their payment habits in recent years. In addition to the ever growing number of
credit and debit card payments, the rise of e-commerce and the increasing
popularity of smart phones have paved the way for the emergence of new means of
payments. The benefits of better market integration and reduced fragmentation in
this field at European level are substantial. 
This initiative will allow consumers and merchants to
benefit fully from the internal market, particularly in terms of e-commerce.The aim of the proposal is to help develop further
an EU-wide market for electronic payments, which will enable consumers,
retailers and other market players to enjoy the full benefits of the EU
internal market, in line with Europe 2020 and the Digital Agenda. Such further
integration is becoming increasingly important as the world moves beyond
bricks-and-mortar trade towards a digital economy. 
To achieve this and promote more competition,
efficiency and innovation in the field of e-payments, there should be legal
clarity and a level playing field, leading to downward convergence of costs and
prices for payment services users, more choice and transparency of payment
services, facilitating the provision of innovative payment services, and to
ensure secure and transparent payment services. 
These objectives will be achieved by updating
and complementing the current framework on payments services; providing for
rules that enhance transparency, innovation and security in the field of retail
payments and improving consistency between national rules, with an emphasis on
the legitimate needs of consumers. The proposed measures seek to do so in a
technologically neutral manner that will remain relevant as payment services
evolve further.
This proposal also incorporates and repeals
Directive 2007/64/EC of the European Parliament and of the Council (the so
called ‘Payment Services Directive’ or ‘PSD’)[1]
which sets the basis for a
harmonised legal framework for the creation of an integrated payments market,
thus improving the level playing field and accessibility of the current
payments framework for all stakeholders. 
At a time when the distinction between payment
institutions (subject to the PSD) and electronic money institutions (subject to
Directive 2009/110/EC of the European Parliament and of the Council[2], the second Electronic Money Directive or ‘EMD’)
is increasingly blurred as technology and business models converge, a full
modernisation of the digital payment framework resulting in the merger of both
categories of actors and respective legislations would be optimal. This would
however entail as a pre-requisite to review the EMD to ensure a coherent
regulatory framework. Unfortunately, the late transposition by many Member
States of the EMD has not allowed gaining sufficient experience with this
Directive to evaluate it together with the Payment Service Directive and
consider possible synergies in the review. A review of Directive 2009/110/EC is
foreseen to take place in 2014. 
General context
Significant progress and integration of retail
payments in the EU have been achieved over the past 12 years, with the current
regulatory and legislative acquis on payments. 
The legal framework established by the PSD, the
cross-border payments Regulation (EC) No 924/2009[3] and the Second Electronic Money Directive have
already resulted in significant progress regarding the integration of the
European retail payments markets. The SEPA migration end-date Regulation (EU)
No 260/2012[4] brought this development a step further by
setting migration deadlines for pan-European credit transfers and direct
debits, replacing national schemes for national and cross border euro payments
within the EU (1 February 2014 for the Eurozone). This regulatory framework is
complemented by ECJ case law and Commission decisions in the context of
competition law in the field of retail payments. 
The retail payments market is very dynamic and has experienced a
significant innovation pace in the last few years. At the same time, important areas of the payments market,
especially card payments and new means of payments, such as internet and mobile
payments, are often still fragmented along national borders making it difficult
for innovative and easy-to-use digital payment services to develop efficiently
and to provide consumers and retailers with convenient and secure payment
methods (with the possible exception of credit cards) at pan-European level to
purchase an expanding range of goods and services. The latest developments in
these markets have also highlighted certain gaps in the current legal framework
for payments and market failures in the markets for card, internet and mobile payments to be addressed in this initiative.
The review of the European framework and notably the Payment
Services Directive and the consultation on the Commission Green Paper ‘Towards
an integrated European market for card, internet and mobile payments’[5] in 2012 have led to the conclusion that further measures and
regulatory updates, including adjustments to the PSD, are required so that the
payments framework can better serve the needs of an effective European payments
market, fully contributing to a payments environment which nurtures
competition, innovation and security. 
In the Commission’s 2012 Communication “Single Market Act II –
Together for new growth”[6], the modernisation of the legislative framework for retail payments
has been identified as a key priority in view of its potential for new growth
and innovation. The revision of the PSD and the preparation of a legislative
proposal on multilateral interchange fees for card payments were defined as one
of the key actions of the Commission for 2013.
Existing provisions in the area of the proposal
This initiative is part of a broader package of
legislative measures on payment services. It will complement and update the
existing legal framework for payment services within the EU, and notably:
–                        
Directive 2007/64/EC creating a harmonised legal
framework so that payments could be made more quickly and easily through the
whole EU, introducing more competition in payment systems and facilitating
economies of scale. It also facilitated the operational implementation of the
Single Euro Payments Area (SEPA).
–                        
Regulation (EC) 924/2009 on cross-border
payments repealing Regulation (EC) No 2560/2001 and extending the scope of the
Regulation to direct debits. It eliminated the differences in payment charges
for payment service users between national and cross-border payments in euro
with in the European Union. It applies to all electronically processed
payments.
–                        
Regulation (EU) No 260/2012 setting migration
deadlines for pan-European credit transfers and pan-European direct debits and
replacing national schemes for national and cross border euro payments within
the European Union.
–                        
Directive 2009/110/EC on electronic money providing for the legal framework to issue and redeem e-money and brings the prudential regime for electronic money institutions in
line with the requirements for payment institutions in the PSD.
–                        
Regulation (EC) No 1781/2006 laying down rules
for payment service providers to send information on the payer throughout the
payment chain for the purposes of prevention, investigation and detection of
money laundering and terrorist financing.
In addition to the legislative framework, a
number of competition proceedings conducted at European and national level have
addressed anti-competitive practices in the payment market.
Consistency with other policies and objectives
of the Union
The objectives of the proposal are fully
coherent with the EU policies and objectives pursued by the Union. First, this
proposal will improve the functioning of the internal market for payment
services and more broadly for all goods and services given the need for
innovative, efficient and secure means of payments. By facilitating economic
transactions within the Union, this will also contribute to the attainment of
the wider objectives of the EU 2020 strategy and the promotion of new growth.
Second, this initiative supports EU policies in other areas such as data
protection, administrative sanctions, anti-money laundering and terrorist
financing and more in particular:
–                        
The Commission's legislative initiatives
regarding the Digital Agenda for Europe[7]
and notably the Commission's proposal for a legal framework on electronic
identification and trust in services for electronic transactions[8] and its proposal concerning measures to ensure a high common level of network and
information security across the Union[9]
and the key priorities identified in the Communication
on e-Commerce and online Services[10],
which aim to achieve a Digital Single Market. 
–                        
The Commission's efforts to increase competition
through establishing equal obligations, rights and opportunities for market
players and facilitating cross-border provision of payment services. 
–                        
The Commission’s legislative proposal on
interchange fees for card-based payment transactions and on the use of certain
restrictive business rules and practices which is prepared at the same time and
in close coordination with the present proposal.
–                        
Directive
2011/83/EC on Consumer Rights[11]
which aims at promoting a real business-to-consumer internal market and at
striking the right balance between a high level of consumer protection and the
competitiveness of enterprises, thereby limiting the discretion of merchants to
apply charges on the use of payment instruments to the costs at hand.
2.           consultations with
interested parties and impact assessment 
Consultation of interested parties 
On 11 January 2012,
the European Commission published a Green Paper "Towards an integrated
European market for card, internet and mobile payments”[12] which was followed by an
extensive public consultation. The Commission received more than 300 replies
from authorities, civil society, business federations and companies from
different fields, representing a broad variety of stakeholders. An additional
number of comments, position papers and contributions were received outside the
consultation. 
The comprehensive
feedback by stakeholders[13]
provided relevant information on some recent new developments and on possible
requirements for changes to the existing payments framework. A public hearing
in the same context took place on 4 May 2012 and was attended by some 350
interested stakeholders. 
On 20 November 2012, the European Parliament adopted a resolution
“Towards an integrated European market for card, internet and mobile payments[14]. The resolution acknowledges
the objectives and integration hurdles identified in the Green Paper and calls
for legislative action in different areas concerning card payments, while
suggesting more caution regarding internet and mobile payments due to the
lesser maturity of those markets. Furthermore, it calls
for a reform of the Single Euro Payments Area (SEPA) governance model.
The consultation
results called for important regulatory adjustments to the existing framework, in
order to reinforce the effectiveness of the European payments market and
contribute to a payment environment nurturing competition, innovation and
security.
Use of expertise
Regarding the review of the PSD and of the Regulation on
cross-border payments in the Internal Market, and the potential need for a
revision of both legal texts, the Commission engaged in additional work to obtain
evidence in the field and to ensure full engagement of the different
stakeholders.
The Commission’s review process on the impact of the PSD and the
Regulation on cross-border payments in the Internal Market has been based on
two dedicated external studies. These studies have provided the Commission with
a comprehensive picture of the economic and legal consequences arising from the
PSD. The first study, carried out by external consultants Tipik in 2011,
provided a legal conformity assessment regarding the transposition of the PSD
in the 27 Member States[15].
Over the course of 2012, a second study prepared by London Economics and iff in
association with PaySys, analysed the impact of the PSD on payment services in
the internal market and the application of the Regulation on cross-border
payments in the Community. Furthermore, input by Member States and relevant
market actors was gathered via the Commission's advisory committees in the
field of payments policy, i.e. the Payments Committee (composed of representatives
from EU countries) and the Payment Systems Market Expert Group (composed of
market representatives from both the supply and the demand side). In addition,
the Commission consulted further relevant stakeholders on particular issues as
appropriate.
Impact assessment 
The Commission carried out an Impact Assessment[16], where it analysed the
potential consequences of a lack of an integrated European payments market.
Notably the following problem drivers were examined: 
–                        
Inconsistent application of the existing rules
across Member States due to many options and often very general criteria of
application. In particular, certain exemptions set out in the PSD appear too
general or outdated with regard to market developments and are being
interpreted very differently. Gaps in the scope of application also arise for
payments with one leg of the transaction located outside the EEA and payments
in non-EU currencies, leading to continued market fragmentation, regulatory
arbitrage, and distortions of competition. 
–                        
Legal vacuum for certain newly emerged internet
service providers, such as third party service providers offering online
banking based payment initiation. These services represent a viable and often
cheaper payment alternative to card payments, attractive also for consumers who
do not dispose of cards. Most of these providers are currently not subject to
the current legal framework as they do not hold funds at any moment. The legal
vacuum risks impeding innovation and appropriate market access conditions.
–                        
Lack of standardisation and inter-operability
between different payment solutions (card, internet and mobile payments), in
varying aspects and to different degrees especially at cross-border level,
exacerbated by weak governance arrangements for the EU retail payments market.
–                        
Diverse and inconsistent charging practices (for
the use of a specific payment instrument applied by merchants) between Member
States (where around half of EU Member States allow and the other half forbids
surcharging) leading to confusion for consumers when they shop abroad or on the
internet and an un-level playing field.
–                        
In the area of payment cards, several
restrictive business rules and practices distorting competition (regardings
MIFs and rules on choice and flexibility of merchants regarding card
acceptance).
The identified
problems described above have resulted in consequences for consumers,
merchants, new payment services providers and the payment services market as a
whole. 
The impact assessment concluded that the
best policy options to improve the existing situation by (i) facilitating the
emergence of a competitive level playing field between incumbents and new
providers of card, internet and mobile payments, (ii) increasing the
efficiency, transparency and choice of payment instruments for payment services
users (consumers and merchants) and (iii) ensuring a high level protection of
the latter would be, with respect to the PSD:
–                        
To reinforce the SEPA project and to empower all
stakeholders to take a more active role in the conception and realisation of
the retail payments policy (governance);
–                        
To facilitate standardisation through adequate
governance framework and through the better involvement of the European
Standardisation Organisations (standardisation);
–                        
To ensure legal certainty in the field of
interchange fees for card-based payments and provide clarity on an acceptable
business model for current and future payment initiatives based on cards
(interchange fees);
–                        
To abolish restrictive business rules for card
payments which lead to market distortions (interchange fees flanking measures);
–                        
To harmonise the Member States policies on
surcharging in line with the regulatory decisions on interchange fees
(interchange fees flanking measures);
–                        
To define conditions of access to the information
on the availability of funds for third party providers, including payment
initiation services (scope of the PSD); 
–                        
To adjust the scope and improve the consistency
of the legislative framework (scope of the PSD);
–                        
To improve the implementation of the existing
PSD (PSD fine-tuning measures);
–                        
To reinforce the rights of PSUs and safeguard
the consumer rights in view of the regulatory changes (scope of the PSD,
interchange fee flanking measures).
The impact assessment received a positive
opinion of the Impact Assessment Board during a hearing of 20 March 2013. In
accordance with the Board recommendations, several changes were made to the
document, notably in:
–                        
substantiating the urgency for the revision of
the Payment Services Directive (PSD) as well as the reasons for regulating MIF
through legislation,
–                        
streamlining the presentation of impacts by
focussing on the impacts of the most important options in the main text and
moving less significant issues to annexes,
–                        
better explaining the interdependencies between
different options and packages.
Most of the proposed policy measures are
addressed in the current proposal. This applies especially to the areas already
covered by the current rules in the PSD, e.g. market access for TPPs,
surcharging and rules for payment institutions. Other measures, in particular
the regulation of MIFs and ancillary measures, will be addressed by a dedicated
legislative proposal, submitted in parallel.
Some measures described above should be addressed
through non-legislative means, for example issues relating to the involvement
of European Standardisation Organisations and SEPA governance. 
The SEPA governance arrangements in place,
including the role of the existing SEPA Council, an ad-hoc high level governing
body, which has been put in place under the co-chairmanship of the Commission
and the European Central bank for an initial period of three years in order to
improve stakeholders’ involvement in SEPA, need to be strengthened. To this
end, the mandate of the SEPA Council needs to be clarified, its composition
reviewed and a better balance of interest of the supply and the demand side established,
to ensure effective advice to Commission and the European Central Bank as
regards the orientation of the SEPA project in the future and to facilitate the
creation of an integrated, competitive and innovative market for retail
payments, in particular in the Euro area. The Commission will work with the European
Central Bank to identify appropriate ways to address the tasks, composition,
chairmanship and functioning of the governance arrangements around SEPA.
3.           LEGAL ELEMENTS OF THE
PROPOSAL
Legal basis 
The current proposal is based on Article
114 TFEU.
Subsidiarity and proportionality
An integrated EU
market for electronic retail payments market contributes to the aim of Article
3 of the Treaty on the European Union stipulating an internal market. Market
integration is necessary to fully unlock a number of benefits for European
citizens. These benefits include more competition between payment service
providers and more choice, innovation and security for payment service users,
especially consumers. An integrated payments market ultimately facilitates the
cross-border provision of goods and services and thereby contributes to a
genuine Single Market. The depth of revision of the Payment Services Directive
is proportionate to the issues arisen to date. The Directive remains globally
fit for purpose; at the same time, the EU legal framework needs to evolve to
take due account of the latest technological and business developments in the
area of retail payments. 
By its nature, an integrated payments market, based on networks that
reach beyond national borders, requires a Union-wide approach as the applicable
principles, rules, processes and standards have to be consistent across all
Member States in order to achieve legal certainty and a level playing field for
all relevant market participants. Given the current fragmentation in the
market, individual action at the level of Member States would not be able to
achieve the aim of an integrated and efficient payment market for both domestic
and cross-border goods and services. 
The approach supports the further enhancement of the Single Euro
Payments Area (SEPA) and is consistent with the Digital Agenda, in particular
the creation of a Digital Single Market. It will promote technological
innovation and contribute to new growth and jobs, in particular in the areas of
e- and m-commerce.
4.           BUDGETARY IMPLICATION 
The Directive has a budgetary impact as indicated in the Legislative
Financial Statement attached to the proposal. 
5.           Additional information 
European Economic Area
The proposed act concerns an EEA matter and should therefore extend
to the European Economic Area.
Explanatory documents
The proposed new Directive contains several adaptations to the existing
Directive and certain new obligations for Member States with a fair margin of
discretion with respect to the way these obligations are transposed in national
law, such as the new provisions on security. Member States are therefore asked
to provide explanatory documents in relation to the transposition measures to
be adopted to allow the Commission to better identify the relevant national
measures and monitoring the correct transposition of the Directive. 
Detailed explanation of the proposal
The following short summary aims to facilitate the decision making
process by sketching the main modifications compared to the to be repealed PSD:
Article 2 – Scope: It is proposed to
extend the scope both as regards the geographical scope and currencies being
covered. 
Article 2(1): The PSD’s provisions on
transparency and information requirements will also apply in relation to
payment transactions to third countries, when only one of the payment service
providers is located within the European Union (so called ‘one-leg
transactions’), as regards those parts of the payments transaction which are
carried out in the European Union. 
Article 2(2): The PSD’s provisions on
transparency and information requirements will be extended to apply to all
currencies and not, as currently, only to EU currencies.
Article 3 –
Negative scope: This provision clarifies and
updates the ‘negative scope’ provided for in the current Directive, which
exempts a number of payments (related) activities from the scope of the PSD:
Article 3(b): The ‘commercial agent’ exemption has been amended to only apply to
commercial agents which act on behalf of either the payer or the payee, and not
to those which act for both payer and the payee. The exemption under the
current PSD has increasingly been used with regard to payment transactions
handled by e-commerce platforms on behalf of both the seller (payee) and the buyer
(payer). This use goes beyond the purpose of the exemption and should thus be
further circumscribed. 
Article 3(k): The ‘limited network’ exemption has increasingly been applied to
large networks involving high payment volumes and ranges of products and
services. This clearly goes beyond the original purpose of this exemption,
leaving large volumes of payments outside the regulatory framework and creating
a competitive disadvantage for regulated market actors. The new definition,
which is in line with the definition of limited networks set out in Directive
2009/110/EC, should contribute to reducing these risks.
Article 3(l): The current digital content or ‘telecom’ exemption is redefined
with a more restricted focus as it will apply exclusively to ancillary payment
services carried out by providers of electronic communication networks or services,
as for example telecom operators. The exemption will apply for the provision of
digital content furnished by a third party, subject to certain thresholds set
out in this directive. The new definition should ensure a level playing field
between different providers and address in a more efficient way the consumer
protection needs in the context of payments.
Deletion of old
Article 3(o): The exemption of ATM services offered
by independent ATM deployers from the PSD led to the creation of ATM networks where
consumers were charged high fees for ATM withdrawals. It appears that this
provision has provided incentives to the existing bank-owned ATM networks to
cancel their current contractual relation with other payment service providers
in order to be able to charge higher fees directly on consumers. Consequently,
this exemption should be deleted. 
Article 9 -
Safeguarding requirements: These requirements will
be streamlined and the safeguarding requirements for payment institutions
licensed under the PSD will be harmonised further, in particular reducing
current possibilities for Member States to limit safeguarding requirements and
reduce the number of possible safeguarding methods with a view to an enhanced level
playing field and improved legal certainty.
Article 14 – European
electronic access point within EBA: A unique
electronic access point should provide
for enhanced transparency of authorised and registered payment institutions by providing
for the interconnection at Union level of national public registers. 
Article 27 –
Conditions: The possibility to use a ‘lighter
regime’ for ‘small payment institutions’ will be expanded to cover a higher
number of small institutions, given that some Member States have had negative
experiences (such as insolvency) with small payment service providers with
activities beyond the current threshold for the waiver regime. The purpose is
to achieve the right balance and on the one hand, avoid unnecessary regulatory
burden for very small institutions and, on the other hand, making sure that
payment services’ users enjoy an adequate level of protection. 
Article 29 –
Access to payment systems: This Article fine-tunes
the rules around access to payment systems by clarifying the conditions of
non-direct access of payment institutions to payment systems designated under
Directive 98/26/EC (Settlement Finality Directive) in a way comparable to the
access used by smaller credit institutions. 
Article 55(3)
and (4) – Charges applicable: This rule will harmonise surcharging practices further, taking due account of
Directive 2011/83 on consumer rights and of the Commission proposal for a
Regulation (EU) XXX of the European Parliament and of the Council on
interchange fees for card-based payment transactions, which is being presented
in parallel. The flexibility under the current PSD, allowing merchants to
request from the payer a charge, offer him a reduction
or otherwise steer him towards the use of the most
efficient payment means, with the qualifier that Member States may forbid or limit
any such surcharging for its territory, has led to extreme heterogeneity in the
market. Thirteen Member States have used this option to prohibit surcharges
under the current PSD. The different regimes in place in Member States create
problems and confusion for merchants and consumers alike, notably when selling
or purchasing goods and services cross-border via the internet. The proposed prohibition
of surcharging is directly linked to the capping of interchange fees according
to the abovementioned proposal for a Regulation on
interchange fees for card-based transactions. Given the
significant reduction of the fees that the merchant will have to pay to his
bank, surcharging is no longer justified for the MIF-regulated cards which will
represent more than 95% of the consumer card market. The proposed rules will thus
contribute to a better consumer experience when paying with a card throughout
the Union and to a greater usage of payment cards instead of use of cash. 
As regards cards
not subject to the Regulation of interchange fees as per the abovementioned
proposal on interchange fees for card-based transactions, i.e. corporate cards
and three-party scheme cards, merchants will still be allowed to surcharge, as
long as the surcharge corresponds to the real cost incurred, taking due account
of Directive 2011/83. Articles 65 and 66 – Payment service provider’s and
payer’s liability for unauthorised payment transactions: The proposed modifications will streamline
and further harmonise the liability rules in case of unauthorised transactions,
, ensuring enhanced protection of the legitimate interests of payment users. Except
in case of fraud and gross negligence, the maximum amount a payment user could
under any circumstances be obliged to pay in case of an unauthorised payment transaction
will be decreased from the current amount of 150 EUR to 50 EUR. It will also
clarify that late payments do not necessarily trigger a refund. 
Article 67 –
Refunds for payment transactions initiated by or through a payee: This rule clarifies the refund right for direct debit transactions bringing it
in line with the SEPA Core Direct Debit Rulebook, provided that the good or
service paid for has not yet been consumed. Under the current rules, different
refund regimes apply regarding direct debits, depending on whether a prior authorisation
has been given, the amount exceeds the amount expected or whether,
alternatively, a further right had been agreed.
Article 85 –
Security measures: The proposed rules address security aspects and aspects of authentication in line with
the Commission proposal for a Directive of the European Parliament and Council
on Network and Information Security.
Title I-V and Annex
I point 7: Coverage of new services and service providers enabling access to
payment accounts - The current PSD does not cover
these actors insofar as they do not dispose of the payer’s or payee’s fund at
any time. The fact that these TPPs are currently unregulated, at least in
certain Member States, has raised security, data protection and liability
concerns, despite the potential benefits brought by these services and service
providers. The proposal brings third party service providers offering notably online banking based
payment initiation services under the scope of the PSD
(Annex I point 7). This should enhance new low cost e-payment solutions on the
internet while ensuring appropriate security, data protection and liability
standards. In order to be allowed to provide payment initiation services, TPPs
would be required to get licensed or registered and supervised as payment
institutions (Title II. Like other payment service providers, they will be
subject to harmonised rights and obligations, and in particular security
requirements (Articles 85 and 86). The envisaged rules will in particular address
conditions for access to account information (Article 58)requirements regarding
authentication (Article 87) and rectification of transactions (Articles 63 and
64) and a balanced liability repartition (Articles 65 and 66). New payment services
providers will benefit from this new regime, regardless of whether they dispose
of the payer’s or payee’s funds at any time. 
Chapter 6 -
Out-of-Court complaint and redress procedures for the settlement of disputes -
shall enhance effective compliance with the
Directive. The new measures update the requirements on out of court complaint
and redress procedures and appropriate penalties. 
Article 92 – Sanctions: In line with
other recent proposals in the financial services sector, Member States will be obliged to align administrative sanctions,
ensure that appropriate administrative measures and sanctions are available for
breaches of the Directive and ensure that these sanctions are duly applied.
European Banking Authority – The Directive contains several areas where work by EBA in its capacity
of contributing to the consistent and coherent functioning of supervision is
foreseen (as referred to in Regulation (EU) 1093/2010). In particular, EBA will
be asked to issue guidelines and draft regulatory technical standards in
various fields, for example in order to clarify the rules on ‘passporting’ for
payment institutions operating in several Member States, or to ensure the establishment
of adequate security requirements. 
2013/0264 (COD)
Proposal for a
DIRECTIVE OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL
on payment services in the internal market
and amending Directives 2002/65/EC, 2013/36/EU and 2009/110/EC and repealing
Directive 2007/64/EC
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 114 thereof,
Having regard to the proposal from the
European Commission,
After transmission of the draft legislative
act to the national Parliaments,
Having regard to the opinion of the
European Economic and Social Committee[17],

Having regard to the opinion of the
European Central Bank[18]

After consulting the European Data
Protection Supervisor,
Acting in accordance with the ordinary
legislative procedure,
Whereas:
(1)       In recent years,
significant progress has been achieved integrating retail payments in the Union,
in particular in the context of the Union acts on payments, notably Directive
2007/64/EC of the European Parliament and of the Council[19], Regulation (EC) No 924/2009
of the European Parliament and of the Council[20],
Directive 2009/110/EC of the European Parliament and of the Council[21], and Regulation (EU) No
260/2012 of the European Parliament and of the Council[22]. Directive 2011/83/EU of the
European Parliament and of the Council[23]
has further complemented the legal framework for payment services by setting a
specific limit on the possibility for retailers to surcharge their customers
for the use of a certain means of payment. 
(2)       Directive 2007/64/EC has
been adopted in December 2007 on the basis of a Commission proposal of December
2005. Since then, the retail payments market has experienced significant
technical innovations with the rapid growth in the number of electronic and mobile
payments and the emergence of new types of payments services in the market
place. 
(3)       The review of the Union legal
framework on payment services and notably the analysis of the impact of
Directive 2007/64/EC and the consultation on the Commission Green Paper “Towards
an integrated European market for card, internet and mobile payments”[24] have shown that developments
have given rise to important challenges from a regulatory perspective.
Important areas of the payments market, in particular card payments, internet
and mobile payments are often still fragmented along national borders. Many
innovative payment products or services do not fall, entirely or in large
parts, under the scope of Directive 2007/64/EC. Furthermore, the scope of
Directive 2007/64/EC and in particular, the elements excluded therefrom, as
certain payment-related activities from the general rules, proved in a few
cases too ambiguous, too general or simply outdated, taking into account the
market developments. This has resulted in legal uncertainty, potential security
risks in the payment chain and a lack of consumer protection in certain areas.
For innovative and easy-to-use digital payment services it has proven to be
difficult to take off and provide consumers and retailers with effective,
convenient and secure payment methods in the Union. 
(4)       Establishing an integrated
single market for electronic payments is crucial in order to ensure that
consumers, merchants and companies enjoy the full benefits of the internal
market, given the development of the digital economy. 
(5)       New rules should be
provided in order to close the regulatory gaps while at the same time providing
for more legal clarity and ensuring a consistent application of the legislative
framework across the Union. Equivalent operating conditions should be
guaranteed to both existing and new players on the market, facilitating new
means of payment to reach a broader market and ensuring a high level of
consumer protection in the use of these payment services across the whole of the
Union. This should lead to a downward trend in costs and prices for payment
services users and more choice and transparency of payment services. 
(6)       In recent years, the
security risks related electronic payments have increased, which is due to the greater
technical complexity of electronic payments, the continuously growing volumes
of electronic payments worldwide and the emerging types of payment services. As
safe and secure payment services constitute a vital condition for a
well-functioning payment services market, users of payment services should be
adequately protected against such risks. Payment services are essential for the
maintenance of vital economic and societal activities and therefore payment
services providers such as credit institutions have been qualified as market
operators according to Article 3(8) of Directive [pls insert number of NIS
Directive after adoption] of the European Parliament and of the Council[25].
(7)       In addition to the general
measures to be taken at Member States' level in Directive [pls insert number
of NIS Directive after adoption], the security risks related to payment
transactions should also be addressed at the level of the payment service
providers. The security measures to be taken by the payment service providers need
to be proportionate to the security risks concerned. A regular reporting
mechanism should be established, so as to ensure payment services should
provide the competent authorities on an annual basis with updated information
on the assessment of their security risks and the (additional) measures that
they have taken in response to these risks. Furthermore, in order to ensure
that damages to other payment service providers and payment systems, such as a
substantial disruption of a payment system and to users is kept to a minimum,
it is essential that payment service providers have the obligation to report
within undue delay major security incidents to the European Banking Authority. 
(8)       The revised regulatory
framework for payment services is complemented by Regulation (EU) [XX/XX/XX] of
the European Parliament and of the Council[26].
That Regulation introduces rules with regard to the charging of multilateral
and bilateral interchange fees for all consumer debit and credit card
transactions and electronic and mobile payments based on those transactions,
and puts restrictions on the use of certain business rules with regard to card
transactions. That Regulation aims at further accelerating the achievement of
an effective integrated market for card based payments.
(9)       In order to avoid
divergent approaches across Member States to the detriment of consumers, the
provisions on transparency and information requirements for payment service
providers in this Directive should also apply to transactions where the payer's
or payee's payment service provider is located within the European Economic
Area (hereinafter “EEA”) and the other payment service provider is located
outside the EEA. It is also appropriate to extend the application of
transparency and information provisions to transactions in all currencies
between payment service providers that are located within the EEA.
(10)     The definition of payment
services should be technologically neutral and allow for the further
development of new types of payment services, while ensuring equivalent
operating conditions for both existing and new payment service providers.
(11)     The exemption of payment
transactions through a commercial agent on behalf of the payer or the payee, as
established in Directive 2007/64/EC is being applied very differently in the Member
States. Certain Member States allow the use of the exemption by e-commerce
platforms that act as an intermediary on behalf of both individual buyers and
sellers without a real margin to negotiate or conclude the sale or purchase of
goods or services. That goes beyond the intended scope of the exemption and may
increase risks for the consumers, as these providers remain outside the
protection of the legal framework. Different application practices also distort
competition in the payment market. The definition should become more precise
and clearer to address these concerns.
(12)     Feedback from the market
shows that the payment activities covered by the limited network exception
often comprise massive payment volumes and values and offer to consumers
hundreds or thousands of different products and services, which does not fit the
purpose of the limited network exemption as provided for in Directive
2007/64/EC. That implies greater risks and no legal protection for payment service
users, in particular for consumers and clear disadvantages for regulated market
actors. A more precise description of a limited network, in line with Directive
2009/110/EC, is necessary in order to limit those risks. A payment instrument
should thus be considered to be used within such a limited network if it can be
used only either for the purchase of goods and services in a specific store or
chain of stores, or for a limited range of goods or services, regardless of the
geographical location of the point of sale. Such instruments could include
store cards, petrol cards, membership cards, public transport cards, meal
vouchers or vouchers for specific services, which are sometimes subject to a
specific tax or labour legal framework designed to promote the use of such
instruments to meet the objectives laid down in social legislation. Where such
a specific-purpose instrument develops into a general purpose instrument, the
exemption from the scope of this Directive should no longer apply. Instruments
which can be used for purchases in stores of listed merchants should not be
exempted from the scope of this Directive as such instruments are typically
designed for a network of service providers which is continuously growing. The
exemption should apply in combination with the obligation of potential payment
service providers to notify activities falling within the scope of the
definition of a limited network.
(13)     Directive 2007/64/EC exempts
from its scope certain payment transactions by means of telecom or information
technology devices where the network operator not only acts as an intermediary for
the delivery of digital goods and services through the device in question, but also
adds value to these goods or services. In particular, this exemption allows for
so called operator billing or direct to phone-bill purchases which, starting
with ringing tones and premium SMS-services, contributes to the development of
new business models based on low-value sale of digital content. Feedback from
the market shows no evidence that this payment method, trusted by consumers as
convenient for low threshold payments, has developed into a general payment
intermediation service. However, due to the ambiguous wording of the current
exemption, this rule has been implemented differently in Member States. This
translates into lack of legal certainty for operators and consumers and has occasionally
allowed other payment intermediation services to claim eligibility for the
exemption of the application of Directive 2007/64/EC. It is therefore appropriate
to narrow down the scope of that Directive. The exemption should focus
specifically on micro-payments for digital content, such as ringtones,
wallpapers, music, games, videos, or applications. The exemption should only
apply to payment services when provided as ancillary services to electronic
communications services (i.e. the core business of the operator concerned). 
(14)     Similarly, Directive
2007/64/EC exempted from its scope payment services offered by deployers of automated
teller machines (hereinafter “ATMs”) independent from banks or other payment
service providers. Originally devised as incentive to install stand-alone ATMs
in remote and poorly populated areas by allowing them to charge extra fees on
top of fees paid to the payment service providers that issued the card, the
provision was not intended to be used by ATM providers with networks comprising
hundreds or even thousands of ATMs, covering one or more Member States. It
leads to non-application of that Directive to a growing part of the ATM market,
with negative effects on the consumer protection. It also incentivises the
existing ATM providers to redesign their business model and cancel the usual
contractual relation with the payment service providers in order to charge higher
fees directly on the consumers. Consequently, the exemption should be deleted. 
(15)     Service providers seeking
to benefit from an exemption under Directive 2007/64/EC often do not consult
authorities on whether their activities are covered or exempted under that Directive
but rely on their own assessments. It appears that some exemptions may have
been used by payment service providers to redesign business models so that the
payment activities offered would be outside the scope of that Directive. This
may result in increased risks for payment service users and diverging
conditions for payment service providers in the internal market. Service
providers should therefore be obliged to notify certain activities to the
competent authorities, to ensure a homogenous interpretation of the rules
throughout the internal market. 
(16)     It is important to include
a requirement for potential payment service providers to notify their intention
to provide activities in the framework of a limited network if the volume of payment
transactions is above a certain threshold. Competent authorities should examine
and take a motivated decision on the basis of the criteria set out in Article
3(k) whether those activities can be considered activities provided in the
framework of a limited network.
(17)     The new rules should follow
the approach taken in Directive 2007/64/EC, covering all types of electronic
payment services. It is therefore still not appropriate that the new rules
apply to services where the transfer of funds from the payer to the payee or
their transport is executed solely in bank notes and coins or where the
transfer is based on a paper cheque, paper-based bill of exchange, promissory
note or other instrument, paper-based vouchers or cards drawn upon a payment
service provider or other party with a view to placing funds at the disposal of
the payee. 
(18)     Since the adoption of
Directive 2007/64/EC new types of payment services have emerged, especially in
the area of internet payments. In particular, third party providers (hereinafter
“TPPs”) have evolved, offering so-called payment initiation services to
consumers and merchants, often without entering into the possession of the
funds to be transferred. Those services facilitate the e-commerce payments by
establishing a software bridge between the website of the merchant and the
online banking platform of the consumer in order to initiate internet payments
on the basis of credit transfers or direct debits. The TPPs offer a low-cost
alternative to card payments for both merchants and consumers and provide
consumers a possibility to shop online even if they do not possess credit
cards. However, as TPPs are currently not subject to Directive 2007/64/EC, they
are not necessarily supervised by a competent authority and do not follow the
requirements of Directive 2007/64/EC. This raises a series of legal issues, such
as consumer protection, security and liability as well as competition and data
protection issues. The new rules should therefore respond to those issues. 
(19)     Money remittance is a
simple payment service that is usually based on cash provided by a payer to a
payment service provider, which remits the corresponding amount, for example
via communication network, to a payee or to another payment service provider
acting on behalf of the payee. In some Member States supermarkets, merchants
and other retailers provide to the public a corresponding service enabling the
payment of utility and other regular household bills. Those bill-paying
services should be treated as money remittance, unless the competent
authorities consider the activity to fall under another payment service.
(20)     It is necessary to specify
the categories of payment service providers which may legitimately provide
payment services throughout the Union, namely, credit institutions which take
deposits from users that can be used to fund payment transactions and which
should continue to be subject to the prudential requirements under Directive 2013/36/EC
of the European Parliament and of the Council[27],
electronic money institutions which issue electronic money that can be used to
fund payment transactions and which should continue to be subject to the
prudential requirements under Directive 2009/110/EC, payment institutions and
post office giro institutions which are so entitled under national law.
(21)     This Directive should lay
down rules on the execution of payment transactions where the funds are
electronic money as provided for in Directive 2009/110/EC. This Directive
should, however, neither regulate issuance of electronic money nor amend the
prudential regulation of electronic money institutions as provided for in that Directive.
Therefore, payment institutions should not be allowed to issue electronic
money.
(22)     Directive 2007/64/EC has
established a prudential regime, introducing a single license for all providers
of payment services which are not connected to taking deposits or issuing
electronic money. To that end, Directive 2007/64/EC introduced a new category
of payment service providers, "payment institutions", by providing
for the authorisation, subject to a set of strict and comprehensive conditions,
of legal persons outside the existing categories to provide payment services
throughout the Union. Thus, the same conditions should apply Union-wide to such
services.
(23)     The conditions for granting
and maintaining authorisation as payment institutions have not substantially
changed. As in Directive 2007/64/EC, the conditions include prudential
requirements proportionate to the operational and financial risks faced by such
bodies in the course of their business. In this connection, there is a need for
a sound regime of initial capital combined with on-going capital which could be
elaborated in a more sophisticated way in due course depending on the needs of
the market. Due to the range of variety in the payments services area, this
Directive should allow various methods combined with a certain range of
supervisory discretion to ensure that the same risks are treated the same way
for all payment service providers. The requirements for the payment
institutions should reflect the fact that payment institutions engage in more
specialised and limited activities, thus generating risks that are narrower and
easier to monitor and control than those that arise across the broader spectrum
of activities of credit institutions. In particular, payment institutions
should be prohibited from accepting deposits from users and permitted to use
funds received from users only for rendering payment services. The required
prudential rules including the initial capital should be appropriate to the
risk related to the respective payment service provided by the payment
institution. Services solely enabling access to payment accounts, but without
offering any accounts, should be considered of a medium risk with regard to the
initial capital. 
(24)     Provision should be made
for client funds to be kept separate from the payment institution's funds for
other business activities. However, safeguarding requirements seem only
necessary when a payment institution is in possession of the clients’ funds.
Payment institutions should also be subject to effective anti-money laundering
and anti-terrorist financing requirements.
(25)     This Directive should not
introduce changes in the obligations of payment institutions with regard to
their account reporting and the account audits on their annual and consolidated
accounts. Payment institutions should draw up their annual and consolidated
accounts in accordance with Council Directive 78/660/EEC[28] and, where applicable, Council
Directive 83/349/EEC[29]
and Council Directive 86/635/EEC[30].
The annual accounts and consolidated accounts should be audited, unless the
payment institution is exempted from this obligation under Directive 78/660/EEC
and, where applicable, Directives 83/349/EEC and 86/635/EEC.
(26)     With technological
developments a range of complementary services have also emerged in recent
years, such as account information and account aggregation services. These
services should also be covered by this Directive in order to provide consumers
with adequate protection and legal certainty about their status. 
(27)     Payment service providers when
engaging in the provision of one or more of the payment services covered by
this Directive should always hold payment accounts used exclusively for payment
transactions. For payment institutions to be able to provide payment services,
it is indispensable that they have access to payment accounts. Member States should
ensure that such access is provided in a way proportionate to the legitimate
aim it intends to serve. 
(28)     This Directive should
regulate the granting of credit by payment institutions, i.e. the granting of
credit lines and the issuance of credit cards, only where it is closely linked
to payment services. Only if credit is granted in order to facilitate payment
services and such credit is of a short-term nature and is granted for a period
not exceeding 12 months, including on a revolving basis, it is appropriate to
allow payment institutions to grant such credit with regard to their
cross-border activities, on condition that it is refinanced using mainly the
payment institution's own funds, as well as other funds from the capital
markets, but not the funds held on behalf of clients for payment services. Such
rules should be without prejudice to Council Directive 2008/48/EC of the
European Parliament and of the Council[31]
or other relevant Union or national legislation regarding conditions for
granting credit to consumers not harmonised by this Directive.
(29)     Overall, the functioning of
the cooperation between the competent national authorities responsible for
granting authorisations to payment institutions, carrying out controls and
deciding on the withdrawal of those authorisations, has proven to work satisfactorily.
However, the cooperation between the competent authorities should be enhanced,
both with regard to the information exchanged as well as a coherent application
and interpretation of the Directive, in cases where the authorised payment
institution would like to provide payment services also in a Member State other
than its home Member State, in exercise of the right of establishment or the
freedom to provide services (“passporting”). The European Banking Authority
(EBA) should be asked to prepare a set of guidelines on the cooperation and
data exchange. 
(30)     To enhance transparency on
the payment institutions authorised by or registered with competent
authorities, including their agents and branches, a web portal serving as
European electronic access point should be established with EBA,
interconnecting the national registers. These measures should aim at contributing
to the enhancement of the cooperation between the competent authorities. 
(31)     The availability of
accurate, updated information should be enhanced by requiring payment
institutions to inform the competent authority of their home state without
undue delay of any changes affecting the accuracy of the information and
evidence provided with regard to the authorisation, including additional agents,
branches or entities to which activities are outsourced. The competent authorities should also verify, in case of doubts,
that the information received is correct. 
(32)     While this Directive
specifies the minimum set of powers competent authorities should have when
supervising the compliance of payment institutions, these powers are to be
exercised with respect to fundamental rights, including the right to privacy.
For the exercise of those powers which may amount to serious interferences with
the right to respect private and family life, home and communications, Member
States should have in place adequate and effective safeguards against any abuse
or arbitrariness, for instance, where appropriate through prior authorisation
from the judicial authority of the Member State concerned.
(33)     It is important to ensure
that all persons providing remittance services are brought within the ambit of
certain minimum legal and regulatory requirements. Thus, it is desirable to
require the registration of the identity and whereabouts of all persons
providing remittance services, including of persons which are unable to meet
the full range of conditions for authorisation as payment institutions. This
approach is in line with the rationale of Special Recommendation VI of the
Financial Action Task Force on Money Laundering which foresees the provision of
a mechanism whereby payment service providers unable to meet all conditions set
out in that Recommendation may nevertheless be treated as payment institutions.
For those purposes, Member States should enter such persons in the register of
payment institutions while not applying all or part of the conditions for
authorisation. However, it is essential to make the possibility of waiver
subject to strict requirements relating to the volume of payment transactions.
Payment institutions benefiting from a waiver should have neither the right of
establishment nor the freedom to provide services, nor should they indirectly
exercise those rights when being a member of a payment system.
(34)     It is essential for any
payment service provider to be able to access the services of technical
infrastructures of payment systems. Such access should, however, be subject to
appropriate requirements in order to ensure integrity and stability of those
systems. Each payment service provider applying for a participation in a
payment system should furnish proof to the participants of the payment system
that its internal arrangements are sufficiently robust against all kinds of
risk. These payment systems typically include e.g. the four-party card schemes
as well as major systems processing credit transfers and direct debits. In
order to ensure equality of treatment throughout the Union as between the
different categories of authorised payment service providers, according to the
terms of their licence, it is necessary to clarify the rules concerning access
to the provision of payment services and access to payment systems. 
(35)     Provision should be made
for the non-discriminatory treatment of authorised payment institutions and
credit institutions so that any payment service provider competing in the
internal market is able to use the services of the technical infrastructures of
these payment systems under the same conditions. It is appropriate to provide
for different treatment for authorised payment service providers and for those
benefiting from a waiver under this Directive as well as from the waiver under
the Article 3 of Directive 2009/110/EC, due to the differences in their respective
prudential framework. In any case, differences in price conditions should be
allowed only where this is motivated by differences in costs incurred by the
payment service providers. This should be without prejudice to Member States'
right to limit access to systemically important systems in accordance with
Directive 98/26/EC of the European Parliament and of the Council[32] and without prejudice to the
competence of the European Central Bank and the European System of Central
Banks (ESCB) concerning access to payment systems. 
(36)     In certain cases, Member
States have granted indirect access to specific payment service providers to
designated payment systems, in analogy to the provisions of Directive 98/26/EC.
This decision is at the discretion of the Member State concerned. However, to
ensure fair competition between payment service providers, this Directive should
provide that where a Member State has granted a payment service provider
indirect access to such systems, other payment service providers which are in
the same situation should be benefit from the same, non-discriminatory
treatment. 
(37)     In recent years, certain three
party payment systems in which the system acts as the sole payment service
provider for both the payer and the payee, have become respectable players in
the market for processing payments. It is therefore no longer justified to
allow these systems to benefit from an exemption with regard to providing
access to other payment service providers, where other payment systems cannot
benefit from such exemption.
(38)     A set of rules should be
established in order to ensure transparency of conditions and information
requirements for payment services.
(39)     This Directive should apply
neither to payment transactions made in cash since a single payments market for
cash already exists nor to payment transactions based on paper cheques since,
by their nature, these cannot be processed as efficiently as other means of
payment. Good practice in this area should, however, be based on the principles
set out in this Directive.
(40)     As consumers and
enterprises are not in the same position, they do not need the same level of
protection. While it is important to guarantee consumers' rights by provisions
which cannot be derogated from by contract, it is reasonable to let enterprises
and organisations agree otherwise when they are not dealing with consumers. However,
Member States should have the possibility to provide that micro-enterprises, as
defined by Commission Recommendation 2003/361/EC[33], should be treated in the same
way as consumers. In any case, certain core provisions of this Directive should
always be applicable irrespective of the status of the user.
(41)     This Directive should
specify the obligations on payment service providers as regards the provision
of information to the payment service users who should receive the same high
level of clear information about payment services in order to make
well-informed choices and be able to choose freely within the Union. In the
interest of transparency this Directive should lay down the harmonised
requirements needed to ensure that necessary and sufficient information is
given to the payment service users with regard to the payment service contract
and the payment transactions. In order to promote smooth functioning of the single
market in payment services, Member States should be able to adopt only those
information provisions laid down in this Directive.
(42)     Consumers should be
protected against unfair and misleading practices in line with Directive
2005/29/EC of the European Parliament and the Council[34] as well as Directive
2000/31/EC of the European Parliament and the Council[35] and Directive 2002/65/EC of
the European Parliament and the Council[36].
The additional provisions in those Directives continue to be applicable. However,
the relationship of the pre-contractual information requirements between this
Directive and Directive 2002/65/EC should, in particular, be clarified.
(43)     The information required
should be proportionate to the needs of users and communicated in a standard format.
However, the information requirements for a single payment transaction should
be different from those of a framework contract which provides for the series
of payment transactions.
(44)     In practice, framework
contracts and the payment transactions covered by them are far more common and
economically important than single payment transactions. If there is a payment
account or a specific payment instrument, a framework contract is required.
Therefore, the requirements for prior information on framework contracts should
be quite comprehensive and information should always be provided on paper or on
another durable medium, such as printouts by account printers, CD-ROMs, DVDs
and hard drives of personal computers on which electronic mail can be stored,
and Internet sites, as long as such sites are accessible for future reference
for a period of time adequate for the purposes of information and allow the
unchanged reproduction of the information stored. However, it should be
possible for the payment service provider and the payment service user to agree
in the framework contract on the manner in which subsequent information on
executed payment transactions is given, for instance, that in Internet banking
all information on the payment account is made available online.
(45)     In single payment
transactions only the essential information should always be given on the
payment service provider's own initiative. As the payer is usually present when
he gives the payment order, it is not necessary to require that information
should in every case be provided on paper or on another durable medium. The
payment service provider may give information orally over the counter or make
it otherwise easily accessible, for example by keeping the conditions on a
notice board on the premises. Information should also be given on where other
more detailed information is available (e.g. the address of the website).
However, if the consumer so requests, the essential information should be given
on paper or on another durable medium.
(46)     This Directive should
provide for the consumer's right to receive relevant information free of charge
before being bound by any payment service contract. The consumer should also be
able to request prior information as well as the framework contract, on paper,
free of charge at any time during the contractual relationship, so as to enable
them to compare payment service providers' services and their conditions and in
case of any dispute verify their contractual rights and obligations. Those
provisions should be compatible with Directive 2002/65/EC. The explicit
provisions on free information in this Directive should not have the effect of
allowing charges to be imposed for the provision of information to consumers
under other applicable Directives.
(47)     The way in which the
required information is to be given by the payment service provider to the
payment service user should take into account the needs of the latter as well
as practical technical aspects and cost-efficiency depending on the situation
with regard to the agreement in the respective payment service contract. Thus,
this Directive should distinguish between two ways in which information is to
be given by the payment service provider: either the information should be
provided, i.e. actively communicated by the payment service provider at the
appropriate time as required by this Directive without further prompting by the
payment service user, or the information should be made available to the
payment service user, taking into account any request he may have for further
information. In the latter case, the payment service user should take some
active steps in order to obtain the information, such as requesting it
explicitly from the payment service provider, logging into bank account mail
box or inserting a bank card into printer for account statements. For such
purposes the payment service provider should ensure that access to the
information is possible and that the information is available to the payment
service user.
(48)     The consumer should receive
basic information on executed payment transactions for no additional charge. In
the case of a single payment transaction the payment service provider should
not charge separately for this information. Similarly, the subsequent monthly
information on payment transactions under a framework contract should be given
free of charge. However, taking into account the importance of transparency in
pricing and differing customer needs, the parties should be able to agree on
charges for more frequent or additional information. In order to take into
account different national practices, Member States should be allowed to set
rules requiring that monthly paper-based statements of payment accounts are
always to be given free of charge.
(49)     In order to facilitate customer
mobility, it should be possible for consumers to terminate a framework contract
after a year without incurring charges. For consumers, the period of notice
agreed should be no longer than a month, and for payment service providers no
shorter than two months. This Directive should be without prejudice to the
payment service provider's obligation to terminate the payment service contract
in exceptional circumstances under other relevant Union or national
legislation, such as legislation on money laundering and terrorist financing,
any action targeting the freezing of funds, or any specific measure linked to
the prevention and investigation of crimes.
(50)     Low value payment
instruments should be a cheap and easy-to-use alternative in the case of
low-priced goods and services and should not be overburdened by excessive
requirements. The relevant information requirements and rules on their
execution should therefore be limited to essential information, taking also
into account technical capabilities that can justifiably be expected from
instruments dedicated to low value payments. Despite the lighter regime payment
service users should benefit from adequate protection considering the limited
risks posed by those payment instruments, especially with regard to prepaid
payment instruments.
(51)     It is necessary to set up
the criteria under which TPPs are allowed to access and use the information on
the availability of funds on the payment service user account held with another
payment service provider. In particular, necessary data protection and security
requirements set or referred to in this Directive or included in the EBA
guidelines should be fulfilled by both the TPP and the payment service provider
servicing the account of the payment service user. The payers should give an
explicit consent to the TPP to access their payment account and be properly
informed about the extent of this access. To allow the development of other
payment services providers which cannot receive deposits, it is necessary that
credit institutions provide them with the information on the availability of
funds if the payer has given consent for this information to be communicated to
the payment service provider issuer of the payment instrument.
(52)     Rights and obligations of
the payment service users and payment service providers should be appropriately
adjusted to take account of the TPP involvement in the transaction whenever the
payment initiation service is used. Specifically, a balanced liability
repartition between the payment service provider servicing the account and the
TPP involved in the transaction should compel them to take responsibility for
the respective parts of the transaction that are under their control and
clearly point to the responsible party in case of incidents. In case of fraud
or dispute, the TPP should be under a specific obligation to provide the payer
and the account servicing payment service provider with the reference of the
transactions and the information of the authorisation relating to the
transaction concerned.
(53)     In order to reduce the
risks and consequences of unauthorised or incorrectly executed payment
transactions the payment service user should inform the payment service
provider as soon as possible about any contestations concerning allegedly unauthorised
or incorrectly executed payment transactions provided that the payment service
provider has fulfilled its information obligations under this Directive. If the
notification deadline is met by the payment service user, it should be able to
pursue those claims within the prescription periods pursuant to national law.
This Directive should not affect other claims between payment service users and
payment service providers.
(54)     In the case of unauthorized
payment transactions the payer should be refunded immediately the amount of the
respective transaction. In order to prevent the payer from any disadvantages,
the credit value date of the refund should not be later than the date when the
respective amount has been debited. In order to provide an incentive for the
payment service user to notify, without undue delay, the provider of any theft
or loss of a payment instrument and thus to reduce the risk of unauthorised
payment transactions, the user should be liable only for a very limited amount,
unless the payment service user has acted fraudulently or with gross
negligence. In this context an amount of EUR 50 seems to be adequate in order
to ensure a harmonized and a high level user protection within the Union.
Moreover, once users have notified a payment service provider that their payment
instrument may have been compromised, the users should not be required to cover
any further losses stemming from unauthorised use of that instrument. This
Directive should be without prejudice to the payment service providers'
responsibility for technical security of their own products.
(55)     In order to assess possible
negligence by the payment service user, account should be taken of all the
circumstances. The evidence and degree of alleged negligence should generally be
evaluated according to national law. Contractual terms and conditions relating
to the provision and use of a payment instrument, the effect of which would be
to increase the burden of proof on the consumer or to reduce the burden of
proof on the issuer should be considered null and void. Moreover, in specific
situations and notably where the payment instrument is not present at the point
of sale, such as in the case of online payments over the internet, it is
appropriate that the payment service provider is required to provide evidence
of alleged negligence since the payer’s means are very limited to do so in such
cases.
(56)     Provisions should be made
for the allocation of losses in the case of unauthorised payment transactions. Except
for cases of fraud and gross negligence, a consumer should never be obliged to
pay more than a maximum of 50 EUR in case of an unauthorised transaction from
his account. Different provisions may apply to payment service users who are
not consumers, since such users are normally in a better position to assess the
risk of fraud and take countervailing measures.
(57)     This Directive should lay
down rules for a refund to protect the consumer when the executed payment
transaction exceeds the amount which could reasonably have been expected. In
order to prevent a financial disadvantage for the payer, it needs to be ensured
that the credit value date of any refund is no later than the date when the
respective amount has been debited. In the case of direct debits payment
service providers should be able to provide even more favourable terms to their
customers, who should have an unconditional right to a refund of any disputed
payment transactions. However, this unconditional refund right which ensures the
highest level of consumer protection is not justified in cases where the
merchant has already fulfilled the contract and the corresponding good or
service has already been consumed. In cases where the user makes a claim for
the refund of a payment transaction refund rights should affect neither the
liability of the payer vis-à-vis the payee from the underlying relationship,
e.g. for goods or services ordered, consumed or legitimately charged, nor the
users rights with regard to revocation of a payment order.
(58)     For financial planning and
the fulfilment of payment obligations in due time, consumers and enterprises
need to have certainty on the length of time that the execution of a payment
order takes. Therefore, this Directive should introduce a point in time at
which rights and obligations take effect, namely, when the payment service
provider receives the payment order, including when he has had the opportunity
to receive it through the means of communication agreed in the payment service
contract, notwithstanding any prior involvement in the process leading up to
the creation and transmission of the payment order, e.g. security and
availability of funds checks, information on the use of the personal identity
number or issuance of a payment promise. Furthermore, the receipt of a payment order
should occur when the payer's payment service provider receives the payment
order to be debited from the payer's account. The day or moment in time when a
payee transmits to the service provider payment orders for the collection e.g.
of card payment or of direct debits or when the payee is granted a
pre-financing on the related amounts by the payment service provider (by way of
a contingent credit to the account) should have no relevance in this respect.
Users should be able to rely on the proper execution of a complete and valid
payment order if the payment service provider has no contractual or statutory
ground for refusal. If the payment service provider refuses a payment order,
the refusal and the reason therefore should be communicated to the payment
service user at the earliest opportunity subject to the requirements of Union and
national law.
(59)     In view of the speed with
which modern fully automated payment systems process payment transactions,
which means that after a certain point in time payment orders cannot be revoked
without high manual intervention costs, it is necessary to specify a clear
deadline for payment revocations. However, depending on the type of the payment
service and the payment order, the point in time may be varied by agreement
between the parties. Revocation, in this context, should be applicable only to
the relationship between a payment service user and payment service provider,
thus being without prejudice to the irrevocability and finality of payment
transactions in payment systems.
(60)     Such irrevocability should
not affect a payment service provider's right or obligation under the laws of
some Member States, based on the payer's framework contract or national laws,
regulations, administrative provisions or guidelines, to reimburse the payer
with the amount of the executed payment transaction in the event of a dispute
between the payer and the payee. Such reimbursement should be considered to be
a new payment order. Except for those cases, legal disputes arising within the
relationship underlying the payment order should be settled only between the
payer and the payee.
(61)     It is essential, for the
fully integrated straight-through processing of payments and for legal
certainty with respect to the fulfilment of any underlying obligation between
payment service users, that the full amount transferred by the payer should be
credited to the account of the payee. Accordingly, it should not be possible
for any of the intermediaries involved in the execution of payment transactions
to make deductions from the amount transferred. However, it should be possible
for payees to enter into an agreement with their payment service provider under
which the latter may deduct own charges. Nevertheless, in order to enable the
payee to verify that the amount due is correctly paid, subsequent information
provided on the payment transaction should indicate not only the full amount of
funds transferred but also the amount of any charges.
(62)     With regard to charges,
experience has shown that the sharing of charges between a payer and a payee is
the most efficient system since it facilitates the straight-through processing
of payments. Provision should therefore be made for charges to be levied, in
the normal course, directly on the payer and the payee by their respective
payment service providers. However, that should apply only where the payment
transaction does not require currency exchange. The amount of any charges
levied may also be zero as the provisions of this Directive should not affect
the practice whereby the payment service provider does not charge consumers for
crediting their accounts. Similarly, depending on the contract terms, a payment
service provider may charge only the payee (merchant) for the use of the
payment service, which has the effect that no charges are imposed on the payer.
The charging by the payment systems may be in the form of a subscription fee.
The provisions on the amount transferred or any charges levied have no direct
impact on pricing between payment service providers or any intermediaries.
(63)     Different national
practices concerning charging for the use of a given payment instrument (hereinafter
“surcharging”) have led to extreme heterogeneity of the Union’s payments market
and become a source of confusion for consumers, in particular in the e-commerce
and cross-border context. Merchants located in Member States where surcharging
is allowed offer products and services in Member States where it is prohibited
and in this case still surcharge the consumer. Moreover, a strong rationale for
revision of surcharging practices is supported by the fact that Regulation (EU)
No xxx/yyyy establishes rules for multilateral interchange fees for card-based
payments. As interchange fees are the main element making most card payments
expensive and surcharging is in practice limited to card-based payments, the rules
on interchange fees should be accompanied by a revision of surcharging rules.
In order to promote cost transparency and the use of the most efficient payment
instruments, Member States and payment service providers should not prevent the
payee from requesting a charge from the payer for using a specific payment
instrument, duly taking into account the provisions set out in Directive
2011/83/EU. However, the right of the payee to request a surcharge should only
apply to those payment instruments for which interchange fees are not regulated.
This should act as a steering mechanism towards the cheapest means of payments.

(64)     In order to improve the
efficiency of payments throughout the Union, all payment orders initiated by
the payer and denominated in euro or the currency of a Member State outside the
euro area, including credit transfers and money remittances, should be subject
to a maximum one-day execution time. For all other payments, such as payments
initiated by or through a payee, including direct debits and card payments, in
the absence of an explicit agreement between the payment service provider and
the payer setting a longer execution time, the same one-day execution time
should apply. It should be possible to extend those periods by an additional
business day, if a payment order is given on paper. This allows the continued
provision of payment services for those consumers who are used to paper
documents only. When a direct debit scheme is used the payee's payment service
provider should transmit the collection order within the time limits agreed
between the payee and the payment service provider, enabling settlement at the
agreed due date. In view of the fact that payment infrastructures are often
highly efficient and in order to prevent any deterioration in current service
levels, Member States should be allowed to maintain or set rules specifying an
execution time shorter than one business day, where appropriate. 
(65)     The provisions on execution
for the full amount and execution time should constitute good practice where
one of the service providers is not located in the Union.
(66)     It is essential for payment
service users to know the real costs and charges of payment services in order
to make their choice. Accordingly, the use of non-transparent pricing methods
should not be allowed, since it is commonly accepted that those methods make it
extremely difficult for users to establish the real price of the payment service.
Specifically, the use of value dating to the disadvantage of the user should
not be permitted.
(67)     The smooth and efficient
functioning of the payment system depends on the user being able to rely on the
payment service provider executing the payment transaction correctly and within
the agreed time. Usually, the provider is in the position to assess the risks
involved in the payment transaction. It is the provider that provides the
payments system, makes arrangements to recall misplaced or wrongly allocated
funds and decides in most cases on the intermediaries involved in the execution
of a payment transaction. In view of all those considerations, it is entirely
appropriate, except under abnormal and unforeseeable circumstances, to impose
liability on the payment service provider in respect of execution of a payment
transaction accepted from the user, except for the payee's payment service
provider's acts and omissions for whose selection solely the payee is
responsible. However, in order not to leave the payer unprotected in unlikely
constellations where it may remain open (non liquet) whether the payment
amount was duly received by the payee's payment service provider or not, the
corresponding burden of proof should lie upon the payer's payment service
provider. As a rule, it can be expected that the intermediary institution,
usually a "neutral" body like a central bank or a clearing house,
transferring the payment amount from the sending to the receiving payment
service provider will store the account data and be able to furnish the latter
whenever this may be necessary. Whenever the payment amount has been credited
to the receiving payment service provider's account, the payee should
immediately have a claim against the payment service provider for credit to the
account.
(68)     The payer's payment service
provider should assume liability for correct payment execution, including, in
particular the full amount of the payment transaction and execution time, and
full responsibility for any failure by other parties in the payment chain up to
the account of the payee. As a result of that liability the payment service
provider of the payer should, where the full amount is not or only late
credited to the payee's payment service provider, correct the payment transaction
or without undue delay refund to the payer the relevant amount of that
transaction, without prejudice to any other claims which may be made in
accordance with national law. Due to the payment service provider’s liability,
the payer or payee should not be burdened with any costs related to the
incorrect payment. In case of non-execution, defective or late execution of
payment transactions, Member States should ensure that the value date of
corrective payments of payment service providers is always the same as the
value date in case of correct execution. 
(69)     This Directive should
concern only contractual obligations and responsibilities between the payment
service user and the payment service provider. However, the proper functioning
of credit transfers and other payment services requires that payment service
providers and their intermediaries, such as processors, have contracts where
their mutual rights and obligations are agreed upon. Questions related to
liabilities form an essential part of these uniform contracts. To ensure the
reliability among payment service providers and intermediaries taking part in a
payment transaction, legal certainty is necessary to the effect that a
non-responsible payment service provider is compensated for losses incurred or
sums paid under the provisions of this Directive relating to liability. Further
rights and details of content of recourse and how to handle claims towards the
payment service provider or intermediary attributable to a defective payment
transaction should be left to be defined by contractual arrangements.
(70)     It should be possible for
the payment service provider to specify unambiguously the information required
to execute a payment order correctly. On the other hand, however, in order to
avoid fragmentation and jeopardising the setting-up of integrated payment
systems in the Union, Member States should not be allowed to require a
particular identifier to be used for payment transactions. However, this should
not prevent Member States from requiring the payment service provider of the
payer to act in due diligence and verify, where technically possible and
without requiring manual intervention, the coherence of the unique identifier,
and where the unique identifier is found to be incoherent, to refuse the
payment order and inform the payer thereof. The liability of the payment
service provider should be limited to the correct execution of the payment
transaction in accordance with the payment order of the payment service user.
(71)     In order to facilitate
effective fraud prevention and combat payment fraud across the Union, provision
should be made for the efficient exchange of data between payment service
providers who should be allowed to collect, process and exchange personal data
relating to persons involved in payment fraud. Directive 95/46/EC of the
European Parliament and of the Council[37],
the national rules which transpose Directive 95/46/EC and Regulation (EC) No
45/2001 of the European Parliament and of the Council[38] are applicable to the processing
of personal data for the purposes of this Directive.
(72)     This
Directive respects the fundamental rights and observes the principles
recognised by the Charter of Fundamental Rights of the European Union,
including the right to respect for private and family life, the right to
protection of personal data, the freedom to conduct a business, the right to an
effective remedy and the right not to be tried or punished twice in criminal
proceedings for the same offence. This Directive has to be implemented in
accordance with these rights and principles.
(73)     It is necessary to ensure
the effective enforcement of the provisions of national law adopted pursuant to
this Directive. Appropriate procedures should therefore be established by means
of which it will be possible to pursue complaints against payment service
providers which do not comply with those provisions and to ensure that, where
appropriate, effective, proportionate and dissuasive sanctions are imposed. In
view of ensuring an effective compliance with this Directive, Member States should
designate competent authorities which comply with the conditions under
Regulation (EU) No 1093/2010 of the European Parliament and of the Council [39] and which act independently
from the payment service providers. For transparency reasons, Member States should
notify the Commission which authorities have been designated, with a clear
description of their duties under this Directive. 
(74)     Without prejudice to the
right of customers to bring action in the courts, Member States should ensure
an easily accessible and cost-sensitive out-of-court resolution of conflicts
between payment service providers and consumers arising from the rights and
obligations set out in this Directive. Regulation (EC) No 593/2008 of the
European Parliament and of the Council[40]
provides that the protection afforded to consumers by the mandatory rules of
the law of the country in which they have their habitual residence may not be
undermined by any contractual terms on law applicable. With regard to establishing
an efficient and effective dispute resolution procedure, Member States should
ensure that payment service providers put in place an effective consumer
complaint procedure that can be followed by their consumers before the dispute
is referred to be resolved in an out-of-court procedure or before court. The
complaints procedure should contain short and clearly defined timeframes within
which the payment service provider should reply to a complaint.
(75)     Member States should
determine whether the competent authorities designated for granting
authorisation to payment institutions might also be the competent authorities
with regard to out-of-court complaint and redress procedures.
(76)     This Directive should be
without prejudice to provisions of national law relating to the consequences as
regards liability of inaccuracy in the expression or transmission of a
statement.
(77)     This Directive should be without
prejudice to the provisions relating to the VAT treatment of payment services
in Directive 2006/112/EC of the
European Parliament and the Council[41].
(78)     In the interests of legal
certainty, it is appropriate to make transitional arrangements allowing persons
who have commenced the activities of payment institutions in accordance with
the national law transposing Directive 2007/64/EC before the entry into force
of this Directive to continue those activities within the Member State
concerned for a specified period. 
(79)     The power to adopt acts in
accordance with Article 290 of the Treaty on the Functioning of the European
Union should be delegated to the Commission in respect of adapting the
reference to Recommendation 2003/361/EC where that Recommendation is amended
and in respect of updating, in case of inflation or significant market
developments, the average amount of payment transactions executed by the
payment service provider used as a threshold for Member States that apply the
option to waive (parts) of the licencing requirements for smaller payment
institutions. It is of particular importance that the Commission carries out
appropriate consultations during its preparatory work, including at expert
level. The Commission, when preparing and drawing up delegated acts, should
ensure a simultaneous, timely and appropriate transmission of relevant documents
to the European Parliament and to the Council. 
(80)     In order to ensure
consistent application of this Directive, the Commission should be able to rely
on the expertise and support of EBA, which should have the task to elaborate
guidelines and prepare regulatory technical standards on security aspects regarding
payment services, and on the cooperation between Member States in the context
of the provision of services and establishment of authorised payment
institutions in other Member States. The Commission should be empowered to
adopt those regulatory technical standards. These specific tasks are fully in
line with the role and responsibilities of EBA defined in Regulation (EU) No
1093/2010, under which the EBA has been set up. 
(81)     Since the objective of this
Directive, namely, the further integration of a single market in payment
services, cannot be sufficiently achieved by the Member States because it
requires the harmonisation of a multitude of different rules currently existing
in the legal systems of the various Member States and can therefore be better
achieved at Union level, the Union may adopt measures, in accordance with the
principle of subsidiarity as set out in Article 5 of the Treaty on European
Union. In accordance with the principle of proportionality, as set out in that
Article, this Directive does not go beyond what is necessary in order to
achieve that objective.
(82)     In accordance with the
Joint Political Declaration of Member States and the Commission of 28 September
2011 on explanatory documents[42],
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.
(83)     Given the number of changes
that need to be made to Directive 2007/64/EC it is appropriate to repeal and
replace it
HAVE ADOPTED THIS DIRECTIVE:
TITLE I
SUBJECT MATTER, SCOPE AND DEFINITIONS
Article 1
Subject matter
1.           This Directive lays down
the rules in accordance with which Member States shall distinguish the
following six categories of payment service provider:
(a)         
 credit institutions within the meaning of
Article 4(1)(1) of Regulation (EU) No 575/2013 of the European Parliament
and of the Council[43] , including branches within the meaning of
Article 4(1)(17) of that Regulation located in the Union of credit institutions
having their head offices inside or, in accordance with Article 47of Directive
2013/36/EU , outside the Union;
(b)         
 electronic money institutions within the
meaning of Article 2(1) of Directive 2009/110/EC;
(c)         
 post office giro institutions which are entitled
under national law to provide payment services;
(d)         
 payment institutions within the meaning of Article
4(4) of this Directive;
(e)         
 the European Central Bank and national central
banks when not acting in their capacity as monetary authority or other public authorities;
(f)           
 Member States or their regional or local
authorities when not acting in their capacity as public authorities.
2.           This Directive also lays
down rules concerning transparency of conditions and information requirements
for payment services, and the respective rights and obligations of payment
service users and payment service providers in relation to the provision of
payment services as a regular occupation or business activity. 
Article 2
Scope
1.           This Directive shall apply
to payment services provided within the Union, where both the payer's payment
service provider and the payee's payment service provider are, or the sole
payment service provider in the payment transaction is, located therein.
Article 78 and Title III shall also apply to payment transactions where only
one of the payment service providers is located within the Union, in respect to
those parts of the payments transaction which are carried out in the Union. 
2.           Title III shall apply
to payment services in any currency. Title IV shall apply to payment services
made in euro or the currency of a Member State outside the euro area.
3.           Member States may waive
the application of all or part of the provisions of this Directive to the
institutions referred to in Article 2(5)(2)-(23) of Directive 2013/36/EU,
with the exception of those referred to in paragraph 5(2) and (3) of that Article.

Article 3
Negative scope
This Directive shall not apply to any of
the following:
(a)         
 payment transactions made exclusively in cash
directly from the payer to the payee, without any intermediary intervention;
(b)         
 payment transactions from the payer to the
payee through a commercial agent authorised to negotiate or conclude the sale
or purchase of goods or services on behalf of either the payer or the
payee; 
(c)         
 professional physical transport of banknotes
and coins, including their collection, processing and delivery;
(d)         
 payment transactions consisting of the
non-professional cash collection and delivery within the framework of a
non-profit or charitable activity;
(e)         
 services where cash is provided by the payee to
the payer as part of a payment transaction following an explicit request by the
payment service user just before the execution of the payment transaction
through a payment for the purchase of goods or services;
(f)           
 cash-to-cash operations where the funds
are not held on a payment account;
(g)         
payment transactions based on any of the
following documents drawn on the payment service provider with a view to
placing funds at the disposal of the payee:
i.        paper cheques governed by the Geneva
Convention of 19 March 1931 providing a uniform law for cheques;
ii.       paper cheques similar to those
referred to in point (i) and governed by the laws of Member States which are
not party to the Geneva Convention of 19 March 1931 providing a uniform
law for cheques;
iii.      paper-based drafts in accordance
with the Geneva Convention of 7 June 1930 providing a uniform law for
bills of exchange and promissory notes;
iv.      paper-based drafts similar to those
referred to in point (iii) and governed by the laws of Member States which are
not party to the Geneva Convention of 7 June 1930 providing a uniform law
for bills of exchange and promissory notes;
v.       paper-based vouchers;
vi.      paper-based traveller's cheques; 
vii.     paper-based postal money orders as
defined by the Universal Postal Union;
(h)         
payment transactions carried out within a
payment or securities settlement system between settlement agents, central
counterparties, clearing houses and/or central banks and other participants of
the system, and payment service providers, without prejudice to Article 29; 
(i)           
payment transactions related to securities asset
servicing, including dividends, income or other distributions, or redemption or
sale, carried out by persons referred to in point (h) or by investment firms,
credit institutions, collective investment undertakings or asset management
companies providing investment services and any other entities allowed to have
the custody of financial instruments;
(j)           
services provided by technical service
providers, which support the provision of payment services, without them
entering at any time into possession of the funds to be transferred, including
processing and storage of data, trust and privacy protection services, data and
entity authentication, information technology (IT) and communication network
provision, provision and maintenance of terminals and devices used for payment
services, with the exclusion of payment initiation services and account
information services;
(k)         
services based on specific instruments that are
designed to address precise needs that can be used only in a limited way,
because they allow the specific instrument holder to acquire goods or services only
in in the premises of the issuer or within a limited network of service
providers under direct commercial agreement with a professional issuer or
because they can be used only to acquire a limited range of goods or services;
(l)           
payment transactions carried out by a provider
of electronic communication networks or services where the transaction is provided
for a subscriber to the network or service and for purchase of digital content
as ancillary services to electronic communications services, regardless of the
device used for the purchase or consumption of the content, provided that the
value of any single payment transaction does not exceed EUR 50 and the
cumulative value of payment transactions does not exceed EUR 200 in any billing
month;
(m)       
payment transactions carried out between payment
service providers, their agents or branches for their own account;
(n)         
payment transactions between a parent
undertaking and its subsidiary or between subsidiaries of the same parent
undertaking, without any intermediary intervention by a payment service
provider other than an undertaking belonging to the same group.
Article 4
Definitions
For the
purposes of this Directive, the following definitions shall apply:
1.           ‘home Member State’ means
either of the following:
i.        the Member State in which the
registered office of the payment service provider is situated; or
ii.       if the payment service provider has,
under its national law, no registered office, the Member State in which its
head office is situated;
2.           ‘host Member State’ means
the Member State other than the home Member State in which a payment service
provider has an agent or a branch or provides payment services;
3.           ‘payment service’ means
any business activity set out in Annex I;
4.           ‘payment institution’
means a legal person that has been granted authorisation in accordance with Article 10
to provide and execute payment services throughout the Union;
5.           ‘payment transaction’
means an act, initiated by the payer or on his behalf or by the payee, of
placing, transferring or withdrawing funds, irrespective of any underlying
obligations between the payer and the payee;
6.           ‘payment system’ means a
funds transfer system with formal and standardised arrangements and common
rules for the processing, clearing and/or settlement of payment transactions;
7.           ‘payer’ means a natural or
legal person who holds a payment account and allows a payment order from that
payment account, or, where there is no payment account, a natural or legal
person who gives a payment order;
8.           ‘payee’ means a natural or
legal person who is the intended recipient of funds which have been the subject
of a payment transaction;
9.           ‘payment service provider’
means bodies referred to in Article 1(1) and legal and natural persons
benefiting from the waiver under Article 27;
10.         ‘account servicing payment
service provider’ means a payment service provider providing and maintaining
payment accounts for a payer;
11.         ‘third party payment
service provider’ means a payment service provider pursuing business activities
referred to in point 7 of Annex I;
12.         ‘payment service user’
means a natural or legal person making use of a payment service in the capacity
of either payer or payee, or both;
13.         ‘consumer’ means a natural
person who, in payment service contracts covered by this Directive, is acting
for purposes other than the trade, business or profession of that person;
14.         ‘framework contract’ means
a payment service contract which governs the future execution of individual and
successive payment transactions and which may contain the obligation and
conditions for setting up a payment account;
15.         ‘money remittance’ means a
payment service where funds are received from a payer, without any payment
accounts being created in the name of the payer or the payee, for the sole
purpose of transferring a corresponding amount to a payee or to another payment
service provider acting on behalf of the payee, and/or where such funds are
received on behalf of and made available to the payee;
16.         ‘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;      
17.         ‘funds’ means banknotes and
coins, scriptural money and electronic money as defined in Article 2(2) of Directive 2009/110/EC;
18.         ‘payment order’ means any
instruction by a payer or payee to his payment service provider requesting the
execution of a payment transaction;
19.         ‘value date’ means a
reference time used by a payment service provider for the calculation of
interest on the funds debited from or credited to a payment account;
20.         ‘reference exchange rate’
means the exchange rate which is used as the basis to calculate any currency
exchange and which is made available by the payment service provider or comes
from a publicly available source;
21.         ‘authentication’ means a
procedure which allows the payment service provider to verify the identity of a
user of a specific payment instrument, including the use of its personalised
security features or the checking of personalised identity documents;
22.         ‘strong customer
authentication’ means a procedure for the validation of the identification of a
natural or legal person based on the use of two or more elements categorised as
knowledge, possession and inherence that are independent, in that the breach of
one does not compromise the reliability of the others and is designed in such a
way as to protect the confidentiality of the authentication data. 
23.         ‘reference interest rate’
means the interest rate which is used as the basis for calculating any interest
to be applied and which comes from a publicly available source which can be
verified by both parties to a payment service contract;
24.         ‘unique identifier’ means a
combination of letters, numbers or symbols specified to the payment service
user by the payment service provider and to be provided by the payment service
user to identify unambiguously the other payment service user and/or the payment
account of that other payment service user for a payment transaction;
25.         ‘agent’ means a natural or
legal person which acts on behalf of a payment institution in providing payment
services; 
26.         ‘payment instrument’ means
any personalised device(s) and/or set of procedures agreed between the payment
service user and the payment service provider and used in order to initiate a
payment order;

27.         ‘means of distance
communication’ refers to any means which, without the simultaneous physical
presence of the payment service provider and the payment service user, may be
used for the conclusion of a payment services contract;
28.         ‘durable medium’ means any
instrument which enables the payment service user to store information
addressed personally to of that payment service user in a way accessible for
future reference for a period of time adequate to the purposes of the
information and which allows the unchanged reproduction of the information
stored;
29.         ‘micro-enterprise’ means an
enterprise, which at the time of conclusion of the payment service contract, is
an enterprise as defined in Article 1 and Article 2(1) and (3) of the
Annex to Recommendation 2003/361/EC in the version of 6 May 2003;
30.         ‘business day’ means a day
on which the relevant payment service provider of the payer or the payment
service provider of the payee involved in the execution of a payment
transaction is open for business as required for the execution of a payment
transaction;
31.         ‘direct debit’ means a
payment service for debiting a payer's payment account, where a payment
transaction is initiated by the payee on the basis of the payer's consent given
to the payee, to the payee's payment service provider or to the payer's own
payment service provider;
32.         ‘payment initiation
service’ means a payment service enabling access to a payment account provided
by a third party payment service provider, where the payer can be actively
involved in the payment initiation or the third party payment service provider’s
software, or where payment instruments can be used by the payer or the payee to
transmit the payer’s credentials to the account servicing payment service
provider;
33.         ‘account information
service’ means a payment service where consolidated and user-friendly
information is provided to a payment service user on one or several payment accounts
held by the payment service user with one or several account servicing payment
service providers; 
34.         ‘branch’ means a place of
business other than the head office which is a part of a payment institution,
which has no legal personality and which carries out directly some or all of
the transactions inherent in the business of a payment institution; all the
places of business set up in the same Member State by a payment institution
with a head office in another Member State shall be regarded as a single
branch;
35.         ‘group’ means a group of
undertakings, which consists of a parent undertaking, its subsidiaries and the
entities in which the parent undertaking or its subsidiaries have a holding as
well as undertakings linked to each other by a relationship referred to in
Article 12(1) of Directive 83/349/EEC;
36.         "electronic
communication network" means a network as defined in Article 2(a) of
Directive 2002/21/EC of the European Parliament and of the Council[44];
37.         "electronic
communication service" means a service as defined in Article 2(c) of
Directive 2002/21/EC;
38.         "digital content"
means goods or service as defined in Article 2 (11) of Directive 2011/83/EU.
TITLE II
PAYMENT SERVICE PROVIDERS
CHAPTER 1
Payment
institutions
Section 1
General rules
Article 5
Applications for authorisation
For
authorisation as a payment institution, an application shall be submitted to
the competent authorities of the home Member State, together with the
following:
(a)                   
a programme of operations, setting out in
particular the type of payment services envisaged;
(b)                   
a business plan including a forecast budget
calculation for the first three financial years which demonstrates that the
applicant is able to employ the appropriate and proportionate systems,
resources and procedures to operate soundly;
(c)                   
evidence that the payment institution holds
initial capital provided for in Article 6;
(d)                   
for the payment institutions referred to in
Article 9(1), a description of the measures taken for safeguarding payment
service users' funds in accordance with Article 9;
(e)                   
a description of the applicant's governance
arrangements and internal control mechanisms, including administrative, risk
management and accounting procedures, which demonstrates that these governance
arrangements, control mechanisms and procedures are proportionate, appropriate,
sound and adequate;
(f)                     
a description of the procedure in place to
monitor, handle and follow up a security incident and security related customer
complaints, including an incidents reporting mechanism which takes account of
the notification obligations of the payment institution laid down in Article 86;
(g)                   
a description of the process in place to
monitor, track and restrict access to sensitive payment data, and logical and
physical critical resources;
(h)                   
a description of business continuity
arrangements including a clear identification the crucial operations, effective
contingency plans and a procedure to regularly test and review the adequacy and
efficiency of such plans;
(i)                     
a description on the principles and definitions
applied for the collection of the statistical data performance, transactions
and fraud;
(j)                     
a security policy document, a detailed risk
assessment in relation to its payment services and a description of security
control and mitigation measures taken to adequately protect the payment
services users against the risks identified, including fraud and illegal use of
sensitive and personal data;
(k)                   
a description of the internal control mechanisms
which the applicant has established in order to comply with obligations in
relation to money laundering and terrorist financing under Directive 2005/60/EC
of the European Parliament and of the Council[45]and
Regulation (EC) No 1781/2006 of the European Parliament and of the Council[46]; 
(l)                     
a description of the applicant's structural
organisation, including, where applicable, a description of the intended use of
agents and branches and a description of outsourcing arrangements, and of its
participation in a national or international payment system;
(m)                 
the identity of persons holding in the
applicant, directly or indirectly, qualifying holdings within the meaning of
Article 3(1)(33) of Directive 2013/36/EU, the size of their holdings and
evidence of their suitability taking into account the need to ensure the sound
and prudent management of a payment institution;
(n)                   
the identity of directors and persons
responsible for the management of the payment institution and, where relevant,
persons responsible for the management of the payment services activities of
the payment institution, as well as evidence that they are of good repute and
possess appropriate knowledge and experience to perform payment services as
determined by the home Member State of the payment institution;
(o)                   
where applicable, the identity of statutory
auditors and audit firms as defined in Directive 2006/43/EC of the European
Parliament and of the Council[47];
(p)                   
the applicant's legal status and articles of
association;
(q)                   
the address of the applicant's head office.
For the purposes of points (d), (e) (f) and
(l), the applicant shall provide a description of its audit arrangements and
the organisational arrangements it has set up with a view to taking all
reasonable steps to protect the interests of its users and to ensure continuity
and reliability in the performance of payment services.
The security control and mitigation
measures referred to in point (j) shall indicate how they ensure a high level
of technical security, including for the software and IT systems used by the
applicant or the undertakings it sub-contracts to for the whole or part of its
operations. Those measures shall also include the security measures laid down
in Article 86(1). Those
measures shall take into account the guidelines on security measures of the
European Banking Authority (EBA) referred to in Article 86(2) when in place.
Article 6
Initial capital
Member States
shall require payment institutions to hold, at the time of authorisation,
initial capital, comprised of the items as referred to in Article 12 of
Directive 2013/36/EU as follows:
(a)                   
where the payment institution provides only the
payment service as referred to in point 6 of Annex I, its capital shall at no
time be less than EUR 20000;
(b)                   
where the payment institution provides the payment
service as referred to in point 7 of Annex I, its capital shall at no time be
less than EUR 50000; 
(c)                   
where the payment institution provides any of
the payment services as referred to in points 1 to 5 of Annex I, its capital
shall at no time be less than EUR 125000.
Article 7
 Own funds
1.           The payment institution's
own funds may not fall below the amount required under Articles 6 or 8 of
this Directive, whichever is the higher. 
2.           Member States shall take
the necessary measures to prevent the multiple use of elements eligible for own
funds where the payment institution belongs to the same group as another
payment institution, credit institution, investment firm, asset management
company or insurance undertaking. This paragraph shall also apply where a payment
institution has a hybrid character and carries out activities other than
providing payment services.
3.           If the conditions laid
down in Article 7 of Regulation (EU) No 575/2013 are met, Member States or
their competent authorities may choose not to apply Article 8 of this
Directive to payment institutions which are included in the consolidated
supervision of the parent credit institution pursuant to Directive 2013/36/EU
Article 8
Calculation of own funds 
1.           Notwithstanding the
initial capital requirements set out in Article 6, Member States shall
require payment institutions to hold, at all times, own funds calculated in
accordance with one of the following three methods, as determined by the
competent authorities in accordance with national legislation:
Method A
The payment institution's own funds shall
amount to at least 10 % of its fixed overheads of the preceding year. The
competent authorities may adjust that requirement in the event of a material
change in a payment institution's business since the preceding year. Where a
payment institution has not completed a full year's business at the date of the
calculation, the requirement shall be that its own funds amount to at least
10 % of the corresponding fixed overheads as projected in its business
plan, unless an adjustment to that plan is required by the competent
authorities.
Method B
The payment institution's own funds shall
amount to at least the sum of the following elements multiplied by the scaling
factor k defined in paragraph 2, where payment volume (PV) represents one
twelfth of the total amount of payment transactions executed by the payment
institution in the preceding year:
(a)         
4,0 % of the slice of PV up to
EUR 5 million,
plus
(b)         
2,5 % of the slice of PV above
EUR 5 million up to EUR 10 million,
plus
(c)         
1 % of the slice of PV above
EUR 10 million up to EUR 100 million,
plus
(d)         
0,5 % of the slice of PV above
EUR 100 million up to EUR 250 million,
plus
(e)         
0,25 % of the slice of PV above
EUR 250 million.
Method C
The payment institution's own funds shall amount
to at least the relevant indicator defined in point (a), multiplied by the
multiplication factor defined in point (b) and by the scaling factor k defined
in paragraph 2.
(a)         
The relevant indicator is the sum of the
following:
–              
interest income,
–              
interest expenses,
–              
commissions and fees received, and
–              
other operating income.
Each element shall be included in the sum with
its positive or negative sign. Income from extraordinary or irregular items may
not be used in the calculation of the relevant indicator. Expenditure on the
outsourcing of services rendered by third parties may reduce the relevant
indicator if the expenditure is incurred from an undertaking subject to
supervision under this Directive. The relevant indicator is calculated on the
basis of the twelve-monthly observation at the end of the previous financial
year. The relevant indicator shall be calculated over the previous financial
year. Nevertheless own funds calculated according to Method C shall not fall
below 80 % of the average of the previous three financial years for the
relevant indicator. When audited figures are not available, business estimates
may be used.
(b)         
The multiplication factor shall be:
i.        10 % of the slice of the
relevant indicator up to EUR 2,5 million;
ii.       8 % of the slice of the relevant
indicator from EUR 2,5 million up to EUR 5 million;
iii.      6 % of the slice of the
relevant indicator from EUR 5 million up to EUR 25 million;
iv.      3 % of the slice of the relevant
indicator from EUR 25 million up to 50 million;
v.       1,5 % above EUR 50 million.
2.           The scaling factor k to be
used in Methods B and C shall be:
(a)         
0,5 where the payment institution provides only
the payment service listed in point 6 of -Annex I;
(b)         
1 where the payment institution provides any of
the payment services listed in points 1 to 5 or 7 ofAnnex I.
3.           The competent authorities
may, based on an evaluation of the risk-management processes, risk loss data
base and internal control mechanisms of the payment institution, require the
payment institution to hold an amount of own funds which is up to 20 %
higher than the amount which would result from the application of the method
chosen in accordance with paragraph 1, or permit the payment institution
to hold an amount of own funds which is up to 20 % lower than the amount
which would result from the application of the method chosen in accordance with
paragraph 1.
Article 9
Safeguarding requirements
1.           The Member States or
competent authorities shall require a payment institution which provides any
payment services and, insofar as it at the same time is engaged in other
business activities referred to in Article 17(1)(c) to safeguard all funds which have been received from the
payment service users or through another payment service provider for the
execution of payment transactions, in either of the following ways:
(a)         
funds shall not be commingled at any time with
the funds of any natural or legal person other than payment service users on
whose behalf the funds are held and, where they are still held by the payment
institution and not yet delivered to the payee or transferred to another
payment service provider by the end of the business day following the day when
the funds have been received, they shall be deposited in a separate account in
a credit institution or invested in secure, liquid low-risk assets as defined
by the competent authorities of the home Member State; and they shall be
insulated in accordance with national law in the interest of the payment
service users against the claims of other creditors of the payment institution,
in particular in the event of insolvency;
(b)         
funds shall be covered by an insurance policy or
some other comparable guarantee from an insurance company or a credit
institution, which does not belong to the same group as the payment institution
itself, for an amount equivalent to that which would have been segregated in
the absence of the insurance policy or other comparable guarantee, payable in
the event that the payment institution is unable to meet its financial
obligations.
2.           Where a payment
institution is required to safeguard funds under paragraph 1 and a portion
of those funds is to be used for future payment transactions with the remaining
amount to be used for non-payment services, that portion of the funds to be
used for future payment transactions shall also be subject to the requirements
under paragraph 1. Where that portion is variable or unknown in advance,
Member States shall allow payment institutions to apply this paragraph
on the basis of a representative portion assumed to be used for payment services
provided such a representative portion can be reasonably estimated on the basis
of historical data to the satisfaction of the competent authorities.
Article 10
Granting of authorisation
1.           Member States shall
require undertakings other than those referred to in Article 1(1)(a), (b),
(c), (e) and (f) and other than legal or natural persons benefiting from a
waiver under Article 27,
who intend to provide payment services, to obtain authorisation as a payment
institution before commencing the provision of payment services. An
authorisation shall only be granted to a legal person established in a Member
State.
2.           An authorisation shall be
granted if the information and evidence accompanying the application complies
with all the requirements under Article 5 and if the competent
authorities' overall assessment, having scrutinised the application, is
favourable. Before an authorisation is granted, the competent authorities may,
where relevant, consult the national central bank or other relevant public
authorities.
3.           A payment institution
which under the national law of its home Member State is required to have a
registered office, shall have its head office in the same Member State as its
registered office.
4.           The competent authorities
shall grant an authorisation only if, taking into account the need to ensure
the sound and prudent management of a payment institution, the payment
institution has robust governance arrangements for its payment services
business, which include a clear organisational structure with well-defined,
transparent and consistent lines of responsibility, effective procedures to
identify, manage, monitor and report the risks to which it is or might be
exposed, and adequate internal control mechanisms, including sound
administrative and accounting procedures; those arrangements, procedures and
mechanisms shall be comprehensive and proportionate to the nature, scale and
complexity of the payment services provided by the payment institution.
5.           Where a payment
institution provides any of the payment services listed in Annex I and, at the
same time, is engaged in other business activities, the competent authorities
may require the establishment of a separate entity for the payment services
business, where the non-payment services activities of the payment institution
impair or are likely to impair either the financial soundness of the payment
institution or the ability of the competent authorities to monitor the payment
institution's compliance with all obligations laid down by this Directive.
6.           The competent authorities
shall refuse to grant an authorisation if, taking into account the need to
ensure the sound and prudent management of a payment institution, they are not
satisfied as to the suitability of the shareholders or members that have qualifying
holdings.
7.           Where close links as
defined in Article 4(1)(38) of Regulation (EU) No 575/2013 exist between
the payment institution and other natural or legal persons, the competent
authorities shall grant an authorisation only if those links do not prevent the
effective exercise of their supervisory functions.
8.           The competent authorities
shall grant an authorisation only if the laws, regulations or administrative
provisions of a third country governing one or more natural or legal persons
with which the payment institution has close links, or difficulties involved in
the enforcement of those laws, regulations or administrative provisions, do not
prevent the effective exercise of their supervisory functions.
9.           An authorisation shall be
valid in all Member States and shall allow the payment institution concerned to
provide payment services throughout the Union, either under the freedom to
provide services or the freedom of establishment, provided that such services
are covered by the authorisation.
Article 11
Communication of the decision
Within three
months of receipt of an application or, should the application be incomplete,
of all the information required for the decision, the competent authorities
shall inform the applicant whether the authorisation has been granted or
refused. Reasons shall be given whenever an authorisation is refused.
Article 12
Withdrawal of authorisation
1.           The competent authorities
may withdraw an authorisation issued to a payment institution only where the
institution falls within the following cases:
(a)         
does not make use of the authorisation within 12
months, expressly renounces the authorisation or has ceased to engage in
business for more than six months, if the Member State concerned has made no
provision for the authorisation to lapse in such cases;
(b)         
has obtained the authorisation through false
statements or any other irregular means;
(c)         
no longer fulfils the conditions for granting
the authorisation or fails to inform the competent
authority on major developments in this respect;
(d)         
would constitute a threat to the stability of or
the trust in the payment system by continuing its payment services business;
(e)         
falls within one of the other cases where
national law provides for withdrawal of an authorisation.
2.           Reasons shall be given for
any withdrawal of an authorisation and those concerned shall be informed accordingly.
3.           The withdrawal of an
authorisation shall be made public, including in the registers referred to in Articles
13 and 14.
Article 13
Registration in the home Member State
Member States
shall establish a public register of authorised payment institutions, their
agents and branches, as well as of natural and legal persons, their agents and
branches, benefiting from a waiver under Article 27, and of the institutions referred to in Article 2(3) that are
entitled under national law to provide payment services. They shall be entered
in the register of the home Member State.
That register
shall identify the payment services for which the payment institution is
authorised or for which the natural or legal person has been registered.
Authorised payment institutions shall be listed in the register separately from
natural and legal persons that have been registered in accordance with Article 27. The register shall be publicly available
for consultation, accessible online, and updated on a regular basis.
Article 14
Web portal with EBA
1.           A web portal serving as
European electronic access point shall be established by EBA, interconnecting
the public registers referred to in Article 13. EBA shall develop and operate
the access point.
2.           The system of
interconnection of public registers shall be composed of:
(a)         
the central registers of Member States;
(b)         
the portal serving as the European electronic
access point.
3.           Member States shall ensure the access to their public
registers via the access point.
4.           EBA shall develop draft
regulatory technical standards setting technical requirements regarding access
to the information contained in the public registers referred to in Article 13
at the Union level. EBA shall submit those draft regulatory technical standards
to the Commission by […within two years of the date of entry into force of this
Directive].
Power is conferred on the Commission to adopt
the regulatory technical standards referred to in the first subparagraph in
accordance with the procedure laid down in Articles 10 – 14 of Regulation (EU)
No 1093/2010.
Article 15
Maintenance of authorisation
Where any change
affects the accuracy of information and evidence provided in accordance with Article 5,
the payment institution shall without undue delay inform the competent
authorities of its home Member State accordingly.
Article 16
Accounting and statutory audit 
1.           Directive 78/660/EEC and,
where applicable, Directives 83/349/EEC and 86/635/EEC and Regulation (EC)
1606/2002 of the European Parliament and of the Council[48] shall apply to payment
institutions mutatis mutandis.
2.           Unless exempted under
Directive 78/660/EEC and, where applicable, Directives 83/349/EEC and
86/635/EEC, the annual accounts and consolidated accounts of payment
institutions shall be audited by statutory auditors or audit firms within the
meaning of Directive 2006/43/EC. 
3.           For supervisory purposes,
Member States shall require that payment institutions provide separate accounting
information for payment services and activities referred to in Article 17(1), which shall be subject to an auditor's
report. That report shall be prepared, where applicable, by the statutory
auditors or an audit firm.
4.           The obligations
established in Article 63 of Directive 2013/36/EU shall apply mutatis
mutandis to the statutory auditors or audit firms of payment institutions
in respect of payment services activities.
Article 17
Activities
1.           Apart from the provision
of payment services, payment institutions shall be entitled to engage in the
following activities:
(a)         
the provision of operational and closely related
ancillary services such as ensuring the execution of payment transactions,
foreign exchange services, safekeeping activities, and the storage and
processing of data;
(b)         
the operation of payment systems, without
prejudice to Article 29;
(c)         
business activities other than the provision of
payment services, having regard to applicable Union and national law.
2.           When payment institutions
engage in the provision of one or more of the payment services, they may hold
only payment accounts used exclusively for payment transactions. Member States
shall ensure that access to those payment accounts is proportionate.
3.           Any funds received by
payment institutions from payment service users with a view to the provision of
payment services shall not constitute a deposit or other repayable funds within
the meaning of Article 9 of Directive 2013/36/EU, or electronic money
within the meaning of Article 2(2) of Directive 2009/110/EC.
4.           Payment institutions may
grant credit related to payment services referred to in points 4 or 5 of Annex
I only if the following conditions are met:
(a)         
the credit shall be ancillary and granted
exclusively in connection with the execution of a payment transaction;
(b)         
notwithstanding national rules on providing
credit by credit cards, the credit granted in connection with a payment and
executed in accordance with Article 10(9) and Article 26 shall be repaid within a short period
which shall in no case exceed 12 months;
(c)         
such credit shall not be granted from the funds
received or held for the purpose of executing a payment transaction;
(d)         
the own funds of the payment institution shall
at all times and to the satisfaction of the supervisory authorities be
appropriate in view of the overall amount of credit granted.
5.           Payment institutions shall
not conduct the business of taking deposits or other repayable funds within the
meaning of Article 9 of Directive 2013/36/EU.
6.           This Directive shall be without
prejudice to Directive 2008/48/EC of the European Parliament and of the Council[49] or other
relevant Union law or national measures regarding conditions for granting
credit to consumers not harmonised by this Directive that is in conformity with
Union law.
Section 2
Other requirements
Article 18
Use of agents, branches or entities to which activities are outsourced
1.           When a payment institution
intends to provide payment services through an agent it shall communicate the
following information to the competent authorities in its home Member State:
(a)         
the name and address of the agent;
(b)         
a description of the internal control mechanisms
that will be used by agents in order to comply with the obligations in relation
to money laundering and terrorist financing under Directive 2005/60/EC;
(c)         
the identity of directors and persons
responsible for the management of the agent to be used in the provision of
payment services and evidence that they are fit and proper persons.
2.           When the competent
authorities receive the information in accordance with paragraph 1 then
they shall list the agent in the register provided for in Article 13.
3.           Before listing the agent
in the register, the competent authorities shall, if they consider that the
information provided to them is incorrect, take further action to verify the
information.
4.           If, after taking action to
verify the information, the competent authorities are not satisfied that the
information provided to them pursuant to paragraph 1 is correct, they
shall refuse to list the agent in the register provided for in Article 13.
5.           If the payment institution
wishes to provide payment services in another Member State by engaging an agent
it shall follow the procedures set out in Article 26. In that case, before the agent may be
registered under this Article, the competent authorities of the home Member
State shall inform the competent authorities of the host Member State of their
intention to register the agent and take their opinion into account. 
6.           If the competent
authorities of the host Member State have reasonable grounds to suspect that,
in connection with the intended engagement of an agent or establishment of a
branch, money laundering or terrorist financing within the meaning of Directive
2005/60/EC is taking place, has taken place or been attempted, or that the
engagement of such agent or establishment of such branch could increase the
risk of money laundering or terrorist financing, they shall so inform the
competent authorities of the home Member State, which may refuse to register the
agent or branch, or may withdraw the registration, if already made, of the
agent or branch.
7.           Where a payment
institution intends to outsource operational functions of payment services, it
shall inform the competent authorities of its home Member State accordingly.
Outsourcing of important operational functions
may not be undertaken in such way as to impair materially the quality of the
payment institution's internal control and the ability of the competent
authorities to monitor the payment institution's compliance with all
obligations laid down in this Directive.
For the purposes of the second subparagraph, an
operational function shall be regarded as important if a defect or failure in
its performance would materially impair the continuing compliance of a payment
institution with the requirements of its authorisation requested under this
Title or its other obligations under this Directive, or its financial
performance, or the soundness or the continuity of its payment services. Member
States shall ensure that when payment institutions outsource important
operational functions, the payment institutions comply with the following
conditions:
(a)         
the outsourcing shall not result in the
delegation by senior management of its responsibility;
(b)         
the relationship and obligations of the payment
institution towards its payment service users under this Directive shall not be
altered;
(c)         
the conditions with which the payment
institution is to comply in order to be authorised and remain so in accordance
with this Title shall not be undermined;
(d)         
 none of the other conditions subject to which
the payment institution's authorisation was granted shall be removed or
modified.
8.           Payment institutions shall
ensure that agents or branches acting on their behalf inform payment service users
of this fact.
9.           Payment institutions shall
inform the competent authorities of their home Member State without undue delay
about any changes regarding the use of agents, including additional agents,
branches or entities to which activities are outsourced and update the
information referred to in paragraph 1 accordingly.
Article 19
Liability
1.           Member States shall ensure
that, where payment institutions rely on third parties for the performance of
operational functions, those payment institutions take reasonable steps to
ensure that the requirements of this Directive are complied with.
2.           Member States shall
require that payment institutions remain fully liable for any acts of their
employees, or any agent, branch or entity to which activities are outsourced.
Article 20
Record-keeping
Member States
shall require payment institutions to keep all appropriate records for the
purpose of this Title for at least five years, without prejudice to Directive
2005/60/EC or other relevant Union legislation.
Section 3
Competent authorities and supervision
Article 21
Designation of competent authorities
1.           Member States shall
designate as the competent authorities responsible for the authorisation and
prudential supervision of payment institutions which are to carry out the
duties provided for under this Title either public authorities, or bodies
recognised by national law or by public authorities expressly empowered for
that purpose by national law, including national central banks
The competent authorities shall guarantee
independence from economic bodies and avoid conflicts of interest. Without
prejudice to the first subparagraph, payment institutions, credit institutions,
electronic money institutions, or post office giro institutions shall not be
designated as competent authorities.
The Member States shall inform the Commission
accordingly.
2.           Member States shall ensure
that the competent authorities designated under paragraph 1 possess all
the powers necessary for the performance of their duties.
3.           Where there is more than
one competent authority for matters covered by this Title on its territory,
Member States shall ensure that those authorities cooperate closely so that
they can discharge their respective duties effectively. The same applies in
cases where the authorities competent for matters covered by this Title are not
the competent authorities responsible for the supervision of credit
institutions.
4.           The tasks of the competent
authorities designated under paragraph 1 shall be the responsibility of
the competent authorities of the home Member State.
5.           Paragraph 1 shall not
imply that the competent authorities are required to supervise business
activities of the payment institutions other than the provision of payment
services and the activities referred to in Article 17(1)(a).
Article 22
Supervision
1.           Member States shall ensure
that the controls exercised by the competent authorities for checking continued
compliance with this Title are proportionate, adequate and responsive to the
risks to which payment institutions are exposed.
In order to check compliance with this Title,
the competent authorities shall be entitled to take the following steps, in
particular:
(a)         
to require the payment institution to provide
any information needed to monitor compliance;
(b)         
to carry out on-site inspections at the payment
institution, at any agent or branch providing payment services under the
responsibility of the payment institution, or at any entity to which activities
are outsourced;
(c)         
to issue recommendations, guidelines and, if
applicable, binding administrative provisions;
(d)         
to suspend or withdraw authorisation in cases
referred to in Article 12.
2.           Without prejudice to the
procedures for the withdrawal of authorisations and the provisions of criminal
law, the Member States shall provide that their respective competent
authorities, may, as against payment institutions or those who effectively
control the business of payment institutions which breach laws, regulations or
administrative provisions concerning the supervision or pursuit of their
payment service business, adopt or impose in respect of them penalties or
measures aimed specifically at ending observed breaches or the causes of such
breaches.
3.           Notwithstanding the
requirements of Article 6, Article 7(1) and (2) and Article 8, Member
States shall ensure that the competent authorities are entitled to take steps
described under paragraph 1 of this Article to ensure sufficient capital
for payment services, in particular where the non-payment services activities
of the payment institution impair or are likely to impair the financial
soundness of the payment institution.
Article 23
Professional secrecy
1.           Member States shall ensure
that all persons working or who have worked for the competent authorities, as
well as experts acting on behalf of the competent authorities, are bound by the
obligation of professional secrecy, without prejudice to cases covered by
criminal law.
2.           In the exchange of
information in accordance with Article 25, professional secrecy shall be strictly applied to ensure the
protection of individual and business rights.
3.           Member States may apply
this Article taking into account, mutatis mutandis, Articles 53 to 61 of
Directive 2013/36/EU.
Article 24
Right to apply to the courts
1.           Member States shall ensure
that decisions taken by the competent authorities in respect of a payment
institution pursuant to the laws, regulations and administrative provisions
adopted in accordance with this Directive may be contested before the courts.
2.           Paragraph 1 shall
apply also in respect of failure to act.
Article 25
Exchange of information
1.           The competent authorities
of the different Member States shall cooperate with each other and, where
appropriate, with the European Central Bank and the national central banks of
the Member States, EBA and other relevant competent authorities designated
under Union or national legislation applicable to payment service providers.
2.           Member States shall, in
addition, allow the exchange of information between their competent authorities
and the following:
(a)         
the competent authorities of other Member States
responsible for the authorisation and supervision of payment institutions;
(b)         
the European Central Bank and the national
central banks of Member States, in their capacity as monetary and oversight
authorities, and, where appropriate, other public authorities responsible for
overseeing payment and settlement systems;
(c)         
other relevant authorities designated under this
Directive, Directive 2005/60/EC and other Union legislation applicable to
payment service providers, such as legislation applicable to money laundering
and terrorist financing;
(d)         
EBA, in its capacity of contributing to the
consistent and coherent functioning of supervising mechanisms as referred to in
Article 1(5)(a) of Regulation (EU) 1093/2010.
Article 26
Exercise of the right of establishment and freedom to provide services
1.           Any authorised payment
institution wishing to provide payment services for the first time in a Member
State other than its home Member State, in exercise of the right of establishment
or the freedom to provide services, shall so inform the competent authorities
in its home Member State.
Within one month of receiving that information,
the competent authorities of the home Member State shall inform the competent
authorities of the host Member State of the name and address of the payment
institution, the names of those responsible for the management of the branch,
its organisational structure and of the kind of payment services it intends to
provide in the territory of the host Member State.
In order to carry out the controls and take the
necessary steps provided for in Article 22 in respect of the agent, branch or entity to which activities are
outsourced of a payment institution located in the territory of another Member
State, the competent authorities of the home Member State shall cooperate with
the competent authorities of the host Member State.
2.           By way of cooperation in
accordance with paragraphs 1 and 2, the competent authorities of the home
Member State shall notify the competent authorities of the host Member State
whenever they intend to carry out an on-site inspection in the territory of the
latter.
However, the competent authorities of the home
Member State may delegate to the competent authorities of the host Member State
the task of carrying out on-site inspections of the institution concerned.
3.           The competent authorities
shall provide each other with all essential and/or relevant information, in
particular in the case of infringements or suspected infringements by an agent,
a branch or an entity to which activities are outsourced. In this regard, the
competent authorities shall communicate, upon request, all relevant information
and, on their own initiative, all essential information.
4.           Paragraphs 1 to 4
shall be without prejudice to the obligation of competent authorities under
Directive 2005/60/EC and Regulation (EC) No 1781/2006, in particular under
Article 37(1) of Directive 2005/60/EC and Article 15(3) of Regulation
(EC) No 1781/2006 to supervise or monitor the compliance with the
requirements laid down in those instruments.
5.           EBA shall issue guidelines
addressed to competent authorities in accordance with Article 16 of Regulation
(EU) No 1093/2010 on the elements to be taken into consideration when deciding
whether the activity the payment institution notified intends to provide in
another Member State under paragraph 1 of this Article would amount to the
exercise of the right of establishment or freedom to provide services. Those
guidelines shall be issued by […within two years of the date of entry into
force of this Directive].
6.           EBA shall develop draft
regulatory technical standards specifying the framework for the co-operation
and exchange of information of competent authorities of the home Member State referred
to in paragraph 1 of this Article with those of the host Member State in
accordance with this Article and Article 18. The draft regulatory technical standards shall specify the method,
means and details of cooperation in the notification of payment institutions
operating on a cross border basis and notably the scope and treatment of
information to be submitted, including a common terminology and standard
notification templates to ensure a consistent and
efficient notification process. 
EBA shall submit those draft regulatory
technical standards to the Commission by (insert date) [… within two
years of the date of entry into force of this Directive].
7.           EBA shall develop draft
regulatory technical standards specifying the framework for the cooperation and
exchange of information of the competent authorities of the home Member State
with those of the host Member State in accordance with paragraphs 2, 3 and 4 of
this Article and Article 22. The
draft regulatory technical standards shall specify the method, means and
details of cooperation in the supervision of payment institutions operating on
a cross border basis and notably the scope and treatment of information to be
exchanged, to ensure consistent and efficient supervision of payment
institutions exercising cross-border provision of payment services. 
EBA shall submit those draft regulatory
technical standards to the Commission by (insert date) […within two years of
the date of entry into force of this Directive].
8.           Power is conferred on the
Commission to adopt the regulatory technical standards referred to in paragraphs
6 and 7 in accordance with the procedure laid down in Articles 10 to 14 of
Regulation (EU) No 1093/2010.
Section 4
Waiver
Article 27
Conditions
1.           Notwithstanding Article 13,
Member States may waive or allow their competent authorities to waive the
application of all or part of the procedure and conditions set out in
Sections 1 to 3, with the exception of Articles 21, 23, 24 and 25, and allow natural or legal persons to be
entered in the register provided for in Article 13, where:
(a)         
the average of the preceding 12 months' total
amount of payment transactions executed by the person concerned, including any
agent for which it assumes full responsibility, does not exceed EUR 1 million
per month. That requirement shall be assessed on the projected total amount of
payment transactions in its business plan, unless an adjustment to that plan is
required by the competent authorities; 
(b)         
none of the natural persons responsible for the
management or operation of the business has been convicted of offences relating
to money laundering or terrorist financing or other financial crimes.
2.           Any natural or legal
person registered in accordance with paragraph 1 shall be required to have
its head office or place of residence in the Member State in which it actually
carries on its business.
3.           The persons referred to in
paragraph 1 of this Article shall be treated as payment institutions, save
that Article 10(9) and Article 26 shall not apply to them.
4.           Member States may also
provide that any natural or legal person registered in accordance with
paragraph 1 of this Article may engage only in certain activities listed
in Article 17.
5.           The persons referred to in
paragraph 1 of this Article shall notify the competent authorities of any
change in their situation which is relevant to the conditions specified in that
paragraph. Member States shall take the necessary steps to ensure that where
the conditions set out in paragraphs 1, 2 and 4 are no longer fulfilled,
the persons concerned shall seek authorisation within 30 calendar days in
accordance with the procedure laid down in Article 10.
6.           Paragraphs 1 to 5 of this
Article shall not be applied in respect of provisions of Directive 2005/60/EC
or national anti-money-laundering provisions.
Article 28
Notification and information
If a Member
State avails itself of the waiver provided for in Article 27, it shall notify the Commission
accordingly by [insert date (the final date of transposition)]of its decision
and it shall notify the Commission forthwith of any subsequent change. In
addition, the Member State shall inform the Commission of the number of natural
and legal persons concerned and, on an annual basis, of the total amount of
payment transactions executed as of 31 December of each calendar year, as
referred to in Article 27(1)(a).
CHAPTER 2
Common
provisions
Article 29
Access to payment systems 
1.           Member States shall ensure
that the rules on access of authorised or registered payment service providers
that are legal persons to payment systems shall be objective,
non-discriminatory and proportionate and that those rules do not inhibit access
more than is necessary to safeguard against specific risks such as settlement
risk, operational risk and business risk and to protect the financial and
operational stability of the payment system. 
Payment systems shall not impose on payment
service providers, on payment service users or on other payment systems any of
the following requirements:
(a)         
any restrictive rule on effective participation
in other payment systems;
(b)         
any rule which discriminates between authorised
payment service providers or between registered payment service providers in
relation to the rights, obligations and entitlements of participants; 
(c)         
any restriction on the basis of institutional
status.
2.           Paragraph 1 shall not
apply to:
(a)         
payment systems designated under Directive
98/26/EC; 
(b)         
payment systems composed exclusively of payment
service providers belonging to a group composed of entities linked by capital
where one of the linked entities enjoys effective control over the other linked
entities.
For the purposes of point (a) of the first
subparagraph of this paragraph, Member States shall ensure that where a
designated payment system allows a payment service provider to pass transfer
orders through the system via a direct participant, such indirect access to the
system services shall, when requested, also be provided to other authorised or
registered payment service providers in line with paragraph 1. 
Article 30
Prohibition for persons other than payment service providers to provide
payment services and duty of notification
1.           Member States shall
prohibit natural or legal persons that are neither payment service providers
nor explicitly excluded from the scope of this Directive from providing the
payment services.
2.           Member States shall
require that, before taking up an activity referred to in Article 3(k) for
which the volume of payment transactions calculated in accordance with Article
27(1)(a) exceeds the threshold referred to therein, service providers notify
their intention to the competent authorities and submit a request for
recognition as a limited network.
Within one month from the date of receipt of
the request for recognition, the competent authority shall take a motivated
decision on the basis of the criteria referred to in Article 3(k) to recognise
or not the activity as a limited network and inform the service provider
accordingly. A summary of the decision shall be made publicly available in the
public register provided for in Article 13. 
The competent authorities shall inform the
Commission of any decision taken in accordance with the second subparagraph. 
TITLE III
TRANSPARENCY OF CONDITIONS AND INFORMATION REQUIREMENTS FOR PAYMENT SERVICES
CHAPTER 1
General
rules
Article 31
Scope
1.           This Title shall apply to
single payment transactions, framework contracts and payment transactions
covered by them. The parties may agree that it shall not apply in whole or in
part when the payment service user is not a consumer.
2.           Member States may provide
that the provisions in this Title shall be applied to micro enterprises in the
same way as to consumers.
3.           This Directive shall be
without prejudice to Directive 2008/48/EC or other relevant Union law or to
national measures regarding conditions for granting credit to consumers not
harmonised by this Directive that is in conformity with Union law.
Article 32
Other provisions in Union legislation
The provisions
of this Title are without prejudice to any Union legislation containing
additional requirements on prior information.
However, where
Directive 2002/65/EC is also applicable, the information requirements set out
in Article 3(1) of that Directive, with the exception of points (2)(c) to
(g), (3)(a), (d) and (e), and (4)(b) of that paragraph shall be replaced by Articles 37,
38, 44 and 45 of this Directive.
Article 33
Charges for information
1.           The payment service
provider shall not charge the payment service user for providing information
under this Title.
2.           The payment service
provider and the payment service user may agree on charges for additional or
more frequent information, or transmission by means of communication other than
those specified in the framework contract, provided at the payment service
user's request.
3.           Where the payment service
provider may impose charges for information in accordance with
paragraph 2, they shall be appropriate and in line with the payment
service provider's actual costs.
Article 34
Burden of proof on information requirements
Member States may
stipulate that the burden of proof shall lie with the payment service provider
to prove that it has complied with the information requirements set out in this
Title.
Article 35
Derogation from information requirements for low-value payment instruments
and electronic money
1.           In cases of payment
instruments which, according to the framework contract, concern only individual
payment transactions that do not exceed EUR 30 or that either have a
spending limit of EUR 150 or store funds that do not exceed EUR 150
at any time:
(a)         
by way of derogation from Articles 44, 45
and 49, the payment service provider shall provide the payer only with
information on the main characteristics of the payment service, including the
way in which the payment instrument can be used, liability, charges levied and
other material information needed to take an informed decision as well as an
indication of where any other information and conditions specified in
Article 45 are made available in an easily accessible manner;
(b)         
it may be agreed that, by way of derogation from
Article 47, the payment service provider shall not be required to propose
changes in the conditions of the framework contract in the same way as provided
for in Article 44(1);
(c)         
it may be agreed that, by way of derogation from
Articles 50 and 51, after the execution of a payment transaction:
(i)      the payment service provider shall
provide or make available only a reference enabling the payment service user to
identify the payment transaction, the amount of the payment transaction, any
charges and/or, in the case of several payment transactions of the same kind
made to the same payee, information on the total amount and charges for those
payment transactions;
(ii)      the payment service provider shall
not be required to provide or make available information referred to in point
(i) if the payment instrument is used anonymously or if the payment service
provider is not otherwise technically in a position to provide it. However, the
payment service provider shall provide the payer with a possibility to verify
the amount of funds stored.
2.           For national payment
transactions, Member States or their competent authorities may reduce or double
the amounts referred to in paragraph 1. For prepaid payment instruments,
Member States may increase those amounts up to EUR 500.
CHAPTER 2
Single
payment transactions
Article 36
Scope
1.           This Chapter shall apply
to single payment transactions not covered by a framework contract.
2.           When a payment order for a
single payment transaction is transmitted by a payment instrument covered by a
framework contract, the payment service provider shall not be obliged to
provide or make available information which is already given to the payment
service user on the basis of a framework contract with another payment service
provider or which will be given to him according to that framework contract.
Article 37
Prior general information
1.           Member States shall
require that before the payment service user is bound by any single payment
service contract or offer, the payment service provider, in an easily
accessible manner, makes available to the payment service user the information
and conditions specified in Article 38. At the payment service user's
request, the payment service provider shall provide the information and
conditions on paper or on another durable medium. The information and
conditions shall be given in easily understandable words and in a clear and
comprehensible form, in an official language of the Member State where the
payment service is offered or in any other language agreed between the parties.
2.           If the single payment
service contract has been concluded at the request of the payment service user
using a means of distance communication which does not enable the payment
service provider to comply with paragraph 1, the payment service provider
shall fulfil its obligations under that paragraph immediately after the
execution of the payment transaction.
3.           The obligations under
paragraph 1 of this Article may also be discharged by supplying a copy of
the draft single payment service contract or the draft payment order including
the information and conditions specified in Article 38.
Article 38
Information and conditions
1.           Member States shall ensure
that the following information and conditions are provided or made available to
the payment service user:
(a)         
a specification of the information or unique
identifier that has to be provided by the payment service user in order for a
payment order to be properly initiated or executed; 
(b)         
the maximum execution time for the payment
service to be provided;
(c)         
all charges payable by the payment service user
to the payment service provider and, where applicable, the breakdown of the
amounts of any charges;
(d)         
where applicable, the actual or reference
exchange rate to be applied to the payment transaction.
2.           Member States shall ensure
that for payment initiation services, the third party payment service provider
shall provide the payer with information about the service offered and contact
information to the third party payment service provider.
3.           Where applicable, any
other relevant information and conditions specified in Article 42 shall be
made available to the payment service user in an easily accessible manner.
Article 39
Information for the payer and payee in case of a payment initiation service
Where a third
party payment service provider, at the request of the payer, initiates a
payment order, it shall provide or make available to the payer and, where
applicable, the payee, immediately after initiation, the following data:
(a)                   
a confirmation of the successful initiation of
the payment order with the payer's account servicing payment service provider;
(b)                   
a reference enabling the payer and the payee to
identify the payment transaction and the payer, where appropriate, and any
information transferred with the payment transaction;
(c)                   
the amount of the payment transaction;
(d)                   
where applicable, the amount of any charges for
the payment transaction and, where applicable, a breakdown thereof.
Article 40
Information for the payer’s account servicing payment service provider in
case of a payment initiation service
Where a payment
order is initiated by the third party payment service provider’s own system, it
shall in case of fraud or dispute make available to the payer and the account
servicing payment service provider the reference of the transactions and the
authorisation information.
Article 41
Information for the payer after receipt of the payment order
Immediately
after receipt of the payment order, the payer's payment service provider shall
provide or make available to the payer, in the same way as provided for in
Article 37(1), the following data:
(a)                   
a reference enabling the payer to identify the
payment transaction and, where appropriate, information relating to the payee;
(b)                   
the amount of the payment transaction in the
currency used in the payment order;
(c)                   
the amount of any charges for the payment
transaction payable by the payer and, where applicable, a breakdown of the
amounts of such charges;
(d)                   
where applicable, the exchange rate used in the payment
transaction by the payer's payment service provider or a reference thereto,
when different from the rate provided in accordance with Article 38(1)(d),
and the amount of the payment transaction after that currency conversion; 
(e)                   
the date of receipt of the payment order.
Article 42
Information for the payee after execution
Immediately
after the execution of the payment transaction, the payee's payment service
provider shall provide or make available to the payee, in the same way as
provided for in Article 37(1), all of the following data:
(a)                   
the reference enabling the payee to identify the
payment transaction and, where appropriate, the payer and any information
transferred with the payment transaction;
(b)                   
the amount of the payment transaction in the
currency in which the funds are at the payee's disposal;
(c)                   
the amount of any charges for the payment
transaction payable by the payee and, where applicable, a breakdown of the
amount of such charges;
(d)                   
where applicable, the exchange rate used in the
payment transaction by the payee's payment service provider, and the amount of
the payment transaction before that currency conversion; 
(e)                   
the credit value date.
CHAPTER 3
Framework
contracts
Article 43
Scope
This Chapter
applies to payment transactions covered by a framework contract.
Article 44
Prior general information
1.           Member States shall
require that, in good time before the payment service user is bound by any
framework contract or offer, the payment service provider provide the payment
service user on paper or on another durable medium with the information and
conditions specified in Article 45. The information and conditions shall
be given in easily understandable words and in a clear and comprehensible form,
in an official language of the Member State where the payment service is
offered or in any other language agreed between the parties.
2.           If the framework contract
has been concluded at the request of the payment service user using a means of
distance communication which does not enable the payment service provider to
comply with paragraph 1, the payment service provider shall fulfil its
obligations under that paragraph immediately after the conclusion of the
framework contract.
3.           The obligations under
paragraph 1 may also be discharged by supplying a copy of the draft
framework contract including the information and conditions specified in
Article 45.
Article 45
Information and conditions
Member States
shall ensure that the following information and conditions are provided to the
payment service user:
1.           on the payment service
provider:
(a)         
the name of the payment service provider, the
geographical address of its head office and, where applicable, the geographical
address of its agent or branch established in the Member State where the
payment service is offered, and any other address, including electronic mail
address, relevant for communication with the payment service provider; 
(b)         
the particulars of the relevant supervisory
authorities and of the register provided for in Article 13 or of any other
relevant public register of authorisation of the payment service provider and
the registration number, or equivalent means of identification in that
register;
2.           on use of the payment
service:
(a)         
a description of the main characteristics of the
payment service to be provided;
(b)         
a specification of the information or unique
identifier that has to be provided by the payment service user in order for a
payment order to be properly initiated or executed;
(c)         
the form of and procedure for giving consent to
initiate or execute a payment transaction and withdrawal of such consent in
accordance with Articles 57 and 71;
(d)         
a reference to the point in time of receipt of a
payment order as defined in Article 69 and the cut-off time, if any,
established by the payment service provider;
(e)         
the maximum execution time for the payment
services to be provided;
(f)           
whether there is a possibility to agree on
spending limits for the use of the payment instrument in accordance with
Article 60(1);
3.           on charges, interest and
exchange rates:
(a)         
all charges payable by the payment service user
to the payment service provider and, where applicable, the breakdown of the
amounts of any charges;
(b)         
where applicable, the interest and exchange
rates to be applied or, if reference interest and exchange rates are to be
used, the method of calculating the actual interest, and the relevant date and
index or base for determining such reference interest or exchange rate; 
(c)         
if agreed, the immediate application of changes
in reference interest or exchange rate and information requirements related to
the changes in accordance with Article 47(2);
4.           on communication:
(a)         
where applicable, the means of communication,
including the technical requirements for the payment service user's equipment
and software, agreed between the parties for the transmission of information or
notifications under this Directive;
(b)         
the manner in and frequency with which
information under this Directive is to be provided or made available;
(c)         
the language or languages in which the framework
contract will be concluded and communication during this contractual
relationship undertaken;
(d)         
the payment service user's right to receive the
contractual terms of the framework contract and information and conditions in
accordance with Article 46;
5.           on safeguards and
corrective measures:
(a)         
where applicable, a description of steps that
the payment service user is to take in order to keep safe a payment instrument
and how to notify the payment service provider for the purposes of
Article 61(1)(b); and the secure procedure on
notification of the customer by the payment service provider in case of
suspected or actual fraud or security threats;
(b)         
if agreed, the conditions under which the
payment service provider reserves the right to block a payment instrument in
accordance with Article 60;
(c)         
the liability of the payer in accordance with
Article 66, including information on the relevant amount;
(d)         
how and within what period of time the payment
service user is to notify the payment service provider of any unauthorised or
incorrectly initiated or executed payment transaction in accordance with
Article 63 as well as the payment service provider's liability for
unauthorised payment transactions in accordance with Article 65;
(e)         
the liability of the payment service provider
for the initiation or execution of payment transactions in accordance with
Article 80;
(f)           
the conditions for refund in accordance with
Articles 67 and 68;
6.           on changes in and
termination of framework contract:
(a)         
if agreed, information that the payment service
user will be deemed to have accepted changes in the conditions in accordance
with Article 47, unless he notifies the payment service provider that he
does not accept them before the date of their proposed date of entry into
force;
(b)         
the duration of the contract;
(c)         
the right of the payment service user to terminate
the framework contract and any agreements relating to termination in accordance
with Article 47(1) and Article 48;
7.           on redress:
(a)         
any contractual clause on the law applicable to
the framework contract and/or the competent courts;
(b)         
the out-of-court complaint and redress
procedures available to the payment service user in accordance with
Articles 88 to 91.
Article 46
Accessibility of information and conditions of the framework contract
At any time
during the contractual relationship the payment service user shall have a right
to receive, on request, the contractual terms of the framework contract as well
as the information and conditions specified in Article 45 on paper or on
another durable medium.
Article 47
Changes in conditions of the framework contract
1.           Any changes in the
framework contract as well as the information and conditions specified in Article 45,
shall be proposed by the payment service provider in the same way as provided
for in Article 44(1) and no later than two months before their proposed
date of application.
Where applicable in accordance with point (a)
of Article 45(6), the payment service provider shall inform the payment
service user that he is to be deemed to have accepted these changes if he does
not notify the payment service provider that he does not accept them before the
proposed date of their entry into force. In this case, the payment service
provider shall also specify that the payment service user has the right to
terminate the framework contract immediately and without charge before the date
of the proposed application of the changes.
2.           Changes in the interest or
exchange rates may be applied immediately and without notice, provided that
such a right is agreed upon in the framework contract and that the changes are
based on the reference interest or exchange rates agreed on in accordance with
points (b) and (c) of Article 45(3). The payment service user shall be
informed of any change in the interest rate at the earliest opportunity in the
same way as provided for in Article 44(1), unless the parties have agreed
on a specific frequency or manner in which the information is to be provided or
made available. However, changes in interest or exchange rates which are more
favourable to the payment service users, may be applied without notice.
3.           Changes in the interest or
exchange rate used in payment transactions shall be implemented and calculated
in a neutral manner that does not discriminate against payment service users.
Article 48
Termination
1.           The payment service user
may terminate the framework contract at any time, unless the parties have
agreed on a period of notice. Such a period may not exceed one month.
2.           Termination of a framework
contract concluded for a fixed period exceeding 12 months or for an indefinite
period shall be free of charge for the payment service user after the expiry of
12 months. In all other cases charges for the termination shall be appropriate
and in line with costs.
3.           If agreed in the framework
contract, the payment service provider may terminate a framework contract
concluded for an indefinite period by giving at least two months' notice in the
same way as provided for in Article 44(1).
4.           Charges for payment
services levied on a regular basis shall be payable by the payment service user
only proportionally up to the termination of the contract. If such charges are
paid in advance, they shall be reimbursed proportionally.
5.           The provisions of this
Article are without prejudice to the Member States' laws and regulations
governing the rights of the parties to declare the framework contract
unenforceable or void.
6.           Member States may provide
more favourable provisions for payment service users.
Article 49
Information before execution of individual payment transactions
In the case of
an individual payment transaction under a framework contract initiated by the
payer, a payment service provider shall, at the payer's request for this
specific payment transaction, provide explicit information on the maximum
execution time and the charges payable by the payer and, where applicable, a
breakdown of the amounts of any charges.
Article 50
Information for the payer on individual payment transactions
1.           After the amount of an
individual payment transaction is debited from the payer's account or, where
the payer does not use a payment account, after the receipt of the payment
order, the payer's payment service provider shall provide the payer without
undue delay in the same way as laid down in Article 44(1) with the
following information:
(a)         
a reference enabling the payer to identify each
payment transaction and, where appropriate, information relating to the payee;
(b)         
the amount of the payment transaction in the
currency in which the payer's payment account is debited or in the currency
used for the payment order;
(c)         
the amount of any charges for the payment
transaction and, where applicable, a breakdown thereof, or the interest payable
by the payer;
(d)         
where applicable, the exchange rate used in the
payment transaction by the payer's payment service provider, and the amount of
the payment transaction after that currency conversion;
(e)         
the debit value date or the date of receipt of
the payment order.
2.           A framework contract may
include a condition that the information referred to in paragraph 1 is to
be provided or made available periodically at least once a month and in an
agreed manner which allows the payer to store and reproduce information
unchanged.
3.           However, Member States may
require payment service providers to provide information on paper once a month
free of charge.
Article 51
Information for the payee on individual payment transactions
1.           After the execution of an
individual payment transaction, the payee's payment service provider shall
provide the payee without undue delay in the same way as laid down in Article 44(1)
with the following information:
(a)         
the reference enabling the payee to identify the
payment transaction and, where appropriate, the payer, and any information
transferred with the payment transaction;
(b)         
the amount of the payment transaction in the
currency in which the payee's payment account is credited;
(c)         
the amount of any charges for the payment
transaction and, where applicable, a breakdown thereof, or the interest payable
by the payee;
(d)         
where applicable, the exchange rate used in the
payment transaction by the payee's payment service provider, and the amount of
the payment transaction before that currency conversion;
(e)         
the credit value date.
2.           A framework contract may
include a condition that the information referred to in paragraph 1 is to
be provided or made available periodically at least once a month and in an
agreed manner which allows the payee to store and reproduce information
unchanged.
3.           However, Member States may
require payment service providers to provide information on paper once a month
free of charge.
CHAPTER 4
Common
provisions
Article 52
Currency and currency conversion
1.           Payments shall be made in
the currency agreed between the parties.
2.           Where a currency
conversion service is offered prior to the initiation of the payment
transaction and where that currency conversion service is offered at the point
of sale or by the payee, the party offering the currency conversion service to
the payer shall disclose to the payer all charges as well as the exchange rate
to be used for converting the payment transaction.
The payer shall agree to the currency
conversion service on that basis.
Article 53
Information on additional charges or reductions
1.           Where, for the use of a
given payment instrument, the payee requests a charge or offers a reduction,
the payee shall inform the payer thereof prior to the initiation of the payment
transaction.
2.           Where, for the use of a
given payment instrument, a payment service provider or a third party requests
a charge, he shall inform the payment service user thereof prior to the
initiation of the payment transaction.
TITLE IV
RIGHTS AND OBLIGATIONS IN RELATION TO THE PROVISION AND USE OF PAYMENT SERVICES
CHAPTER 1
Common provisions
Article 54
Scope
1.           Where the payment service
user is not a consumer, the payment service user and the payment service
provider may agree that Article 55(1), Article 57(3), and Articles 64, 66, 67, 68,
71 and 80 shall not apply in whole or in part. The payment service user and the
payment service provider may also agree on a time period different from that
laid down in Article 63.
2.           Member States may provide
that Article 91 does not apply where the payment service user is not a
consumer.
3.           Member States may provide
that provisions in this Title are applied to micro enterprises in the same way
as to consumers.
4.           This Directive shall be
without prejudice Directive 2008/48/EC or other relevant Union law or national
legislation regarding conditions for granting credit to consumers not
harmonised by this Directive that are in conformity with Union law.
Article 55
Charges applicable
1.           The payment service
provider may not charge the payment service user for fulfilment of its
information obligations or corrective and preventive measures under this Title,
unless otherwise specified in Articles 70(1), 71(5) and 79(2). Those
charges shall be agreed between the payment service user and the payment
service provider and shall be appropriate and in line with the payment service
provider's actual costs.
2.           Where a payment
transaction does not involve any currency conversion, Member States shall
require that the payee pays the charges levied by his payment service provider,
and the payer pays the charges levied by his payment service provider.
3.           The payment service
provider shall not prevent the payee from requesting from the payer a charge,
offering him a reduction or otherwise steering him towards the use of a given
payment instrument. Any charges applied shall, however,
not exceed the costs borne by the payee for the use the specific payment
instrument. 
4.           However, Member States shall
ensure that the payee shall not request charges for the use of payment instruments
for which interchange fees are regulated under Regulation (EU) No [XX/XX/XX/] [OP
please insert number of Regulation once adopted]
Article 56
Derogation for low value payment instruments and electronic money
1.           In the case of payment
instruments which according to the framework contract, solely concern
individual payment transactions not exceeding EUR 30 or which either have
a spending limit of EUR 150 or store funds which do not exceed
EUR 150 at any time payment service providers may agree with their payment
service users that:
(a)         
Article 61(1)(b) and Article 62(1)(c)
and (d) as well as Article 66(2) do not apply if the payment instrument
does not allow its blocking or prevention of its further use;
(b)         
Articles 64, 65 and Article 66(1) and
(2) do not apply if the payment instrument is used anonymously or the payment
service provider is not in a position for other reasons which are intrinsic to
the payment instrument to prove that a payment transaction was authorised;
(c)         
by way of derogation from Article 70(1),
the payment service provider is not required to notify the payment service user
of the refusal of a payment order, if the non-execution is apparent from the
context;
(d)         
by way of derogation from Article 71, the
payer may not revoke the payment order after transmitting the payment order or
giving consent to execute the payment transaction to the payee;
(e)         
by way of derogation from Articles 74 and 75,
other execution periods apply.
2.           For national payment
transactions, Member States or their competent authorities may reduce or double
the amounts referred to in paragraph 1. They may increase them for prepaid
payment instruments up to EUR 500.
3.           Articles 65 and 66 of
this Directive shall apply also to electronic money within the meaning of
Article 2(2) of Directive 2009/110/EC, except where the payer's payment
service provider does not have the ability to freeze the payment account or
block the payment instrument. Member States may limit that derogation to
payment accounts or payment instruments of a certain value.
CHAPTER 2
Authorisation
of payment transactions
Article 57
Consent and withdrawal of consent
1.           Member States shall ensure
that a payment transaction is considered to be authorised only if the payer has
given consent to execute the payment transaction. A payment transaction may be
authorised by the payer prior to or, if agreed between the payer and the payment
service provider, after the execution of the payment transaction. 
2.           Consent to execute a
payment transaction or a series of payment transactions shall be given in the
form agreed between the payer and the payment service provider. Consent may also
be given directly or indirectly via the payee. Consent to execute a payment
transaction shall also be considered given where the payer authorises a third
party payment service provider to initiate the payment transaction with the
account servicing payment service provider.
In the absence of consent, a payment
transaction shall be considered to be unauthorised.
3.           Consent may be withdrawn
by the payer at any time, but no later than the point in time of irrevocability
under Article 71. Consent to execute a series of payment transactions may
also be withdrawn with the effect that any future payment transaction is to be
considered as unauthorised.
4.           The procedure for giving
consent shall be agreed between the payer and the relevant payment service
provider(s).
Article 58
Access to and use of payment
account information by third party payment service provider
1.           Member States shall ensure
that a payer has the right to make use of a third party payment service
provider to obtain payment services enabling access to payment accounts as referred
to in point (7) of Annex I. 
2.           Where a third party
payment service provider has been authorised by the payer to provide payment
services under paragraph 1, he shall have the following obligations:
(a)         
to ensure that the personalised security
features of the payment service user are not accessible to other parties;
(b)         
to authenticate itself in an unequivocal manner
towards the account servicing payment service provider(s) of the account owner.

(c)         
not to store sensitive payment data or
personalised security credentials of the payment service user.
3.           Where, for a payment
initiation service, the account servicing payment service provider has received
the payer’s payment order through the services of a third party payment service
provider, it shall immediately notify the latter of the receipt of the payment
order and provide information on the availability of sufficient funds for the
specified payment transaction.
4.           Account servicing payment
service providers shall treat payment orders transmitted through the services
of a third party payment service provider without any discrimination for other
than objective reasons in terms of timing and priority vis-à-vis payment orders
transmitted directly by the payer himself.
Article 59
Access to and use of payment account information by
third party payment instrument issuers 
1.           Member States shall ensure
that a payer has the right to make use of a third party payment instrument
issuer to obtain payment card services.
2.           If the payer has given
consent to a third party payment instrument issuer which has provided the payer
with a payment instrument to obtain information on the availability of
sufficient funds for a specified payment transaction on a specified payment
account held by the payer, the account servicing payment service provider of the
specified payment account shall provide such information to the third party
payment instrument issuer immediately upon receipt of the payer's payment
order. 
3.           Account servicing payment
service providers shall treat payment orders transmitted through the services
of a third party payment instrument issuer without any discrimination for other
than objective reasons in terms of timing and priority in respect of payment
orders transmitted directly by the payer personally.
Article 60
Limits of the use of the payment
instrument
1.           Where a specific payment
instrument is used for the purposes of giving consent, the payer and the
payer's payment service provider may agree on spending limits for payment
transactions executed through that payment instrument. 
2.           If agreed in the framework
contract, the payment service provider may reserve the right to block the
payment instrument for objectively justified reasons related to the security of
the payment instrument, the suspicion of unauthorised or fraudulent use of the
payment instrument or, in the case of a payment instrument with a credit line,
a significantly increased risk that the payer may be unable to fulfil its liability
to pay.
3.           In such cases the payment
service provider shall inform the payer of the blocking of the payment
instrument and the reasons for it in an agreed manner, where possible, before
the payment instrument is blocked and at the latest immediately thereafter,
unless giving such information would compromise objectively justified security
reasons or is prohibited by other relevant Union or national legislation.
4.           The payment service
provider shall unblock the payment instrument or replace it with a new payment
instrument once the reasons for blocking no longer exist.
Article 61
Obligations of the payment service user in relation to payment instruments
1.           The payment service user
entitled to use a payment instrument shall have the following obligations:
(a)         
to use the payment instrument in accordance with
the objective, non-discriminatory and proportionate terms governing the issue
and use of the payment instrument; 
(b)         
to notify the payment service provider, or the
entity specified by the latter, without undue delay on becoming aware of loss,
theft or misappropriation of the payment instrument or of its unauthorised use.
2.           For the purposes of point
(a) of paragraph 1, the payment service user shall, in particular, as soon
as he in receipt of a payment instrument, take all reasonable steps to keep its
personalised security features safe. The payment service users’ obligations of
care shall not inhibit the use of any payment instrument and services
authorised under this Directive.
Article 62
Obligations of the payment service provider in relation to payment
instruments
1.           The payment service
provider issuing a payment instrument shall have the following obligations:
(a)         
to make sure that the personalised security
features of the payment instrument are not accessible to parties other than the
payment service user entitled to use the payment instrument, without prejudice
to the obligations on the payment service user set out in Article 61;
(b)         
to refrain from sending an unsolicited payment
instrument, except where a payment instrument already given to the payment
service user is to be replaced;
(c)         
to ensure that appropriate means are available
at all times to enable the payment service user to make a notification pursuant
to Article 61(1)(b) or request unblocking pursuant to Article 60(4);
on request, the payment service provider shall provide the payment service user
with the means to prove, for 18 months after notification, that he made such
notification; 
(d)         
to provide the payer with an option to make a
notification pursuant to Article 61(1)(b) free of charge and to charge, if at
all, only replacement costs directly attributed to the payment instrument;
(e)         
to prevent all use of the payment instrument
once notification pursuant to Article 61(1)(b) has been made.
2.           The payment service
provider shall bear the risk of sending a payment instrument to the payer or of
sending any personalised security features of it.
Article 63
Notification of unauthorised or incorrectly executed payment transactions
1.           The payment service user
shall obtain rectification from the account servicing payment service provider
only if he notifies the payment service provider without undue delay on
becoming aware of any unauthorised or incorrectly executed payment transactions
giving rise to a claim, including that under Article 80, and no later than
13 months after the debit date, unless, where applicable, the payment service
provider has failed to provide or make available the information on that
payment transaction in accordance with Title III.
2.           Where a third party
payment service provider is involved, the payment service user shall also
obtain rectification from the account servicing payment service provider
pursuant to paragraph 1 of this Article, without prejudice to Articles 65(2)
and 80(1). 
Article 64
Evidence on authentication and execution of payment transactions
1.           Member States shall
require that, where a payment service user denies having authorised an executed
payment transaction or claims that the payment transaction was not correctly
executed, it is for the payment service provider and, if involved and as
appropriate, the third party payment service provider, to prove that the
payment transaction was authenticated, accurately recorded, entered in the
accounts and not affected by a technical breakdown or some other deficiency.
If the payment transaction has been initiated
through a third party payment service provider, the burden shall be on the
latter to prove that the payment transaction was not affected by a technical
breakdown or other deficiencies linked to the payment service it is in charge
of.
2.           Where a payment service
user denies having authorised an executed payment transaction, the use of a
payment instrument recorded by the payment service provider, including the
third party payment service provider as appropriate, shall in itself not
necessarily be sufficient to prove either that the payment transaction was
authorised by the payer or that the payer acted fraudulently or failed with
intent or gross negligence to fulfil one or more of the obligations under
Article 61.
Article 65
Payment service provider's liability for unauthorised payment transactions
1.           Member States shall ensure
that, without prejudice to Article 63, in the case of an unauthorised
payment transaction, the payer's payment service provider refunds to the payer
immediately the amount of the unauthorised payment transaction and, where
applicable, restores the debited payment account to the state in which it would
have been had the unauthorised payment transaction not taken place. This shall
also ensure that the credit value date for the payer’s payment account shall be
no later than the date the amount had been debited.
2.           Where a third party
payment service provider is involved, the account servicing payment service
provider shall refund the amount of the unauthorised payment transaction and,
where applicable, restore the debited payment account to the state in which it
would have been had the unauthorised payment transaction not taken place. Financial
compensation to the account servicing payment service provider by the third
party payment service provider may be applicable.
3.           Further financial
compensation may be determined in accordance with the law applicable to the
contract concluded between the payer and the payment service provider or the
contract concluded between the payer and the third party payment service
provider if applicable.
Article 66
Payer's liability for unauthorised payment transactions
1.           By way of derogation from Article 65
the payer may be obliged to bear the losses relating to any unauthorised
payment transactions, up to a maximum of EUR 50, resulting from the use of a
lost or stolen payment instrument or from the misappropriation of a payment
instrument. 
The payer shall bear all the losses relating to
any unauthorised payment transactions if incurred by acting fraudulently or by
failing to fulfil one or more of the obligations set out in Article 61
with intent or gross negligence. In such cases, the maximum amount referred to
in paragraph 1 of this Article shall not apply. For payments via a
distance communication where the payment service provider does not require
strong customer authentication, the payer shall only bear any financial
consequences where having acted fraudulently. Should the payee or the payment
service provider of the payee fail to accept strong customer authentication,
they shall refund the financial damage caused to the payer’s payment service provider.
2.           The payer shall not bear
any financial consequences resulting from use of the lost, stolen or
misappropriated payment instrument after notification in accordance with
Article 61(1)(b), except where having acted fraudulently. If the payment
service provider does not provide appropriate means for the notification at all
times of a lost, stolen or misappropriated payment instrument, as required
under Article 62(1)(c), the payer shall not be liable for the financial
consequences resulting from use of that payment instrument, except where having
acted fraudulently.
Article 67
Refunds for payment transactions initiated by or through a payee
1.           Member States shall ensure
that a payer is entitled to a refund from the payment service provider of an
authorised payment transaction initiated by or through a payee which has
already been executed, if the following conditions are met:
(a)         
the authorisation did not specify the exact
amount of the payment transaction when the authorisation was made; 
(b)         
the amount of the payment transaction exceeded
the amount the payer could reasonably have expected taking into account the previous
spending pattern, the conditions in the framework contract and relevant circumstances
of the case.
At the payment service provider’s request, the payer
shall bear the burden to prove such conditions are met. 
The refund shall consist of the full amount of
the executed payment transaction. This includes that the credit value date for
the payer’s payment account is no later than the date the amount had been
debited.
For direct debits the payer has an
unconditional right for refund within the time limits set in Article 68, except
where the payee has already fulfilled the contractual obligations and the
services have already been received or the goods have already been consumed by
the payer. At the payment service provider’s request, the payee shall bear the
burden to prove that the conditions referred to in the third subparagraph. 
2.           However, for the purposes
of point (b) of the first subparagraph of paragraph 1, the payer may not
rely on currency exchange reasons if the reference exchange rate agreed with
his payment service provider in accordance with Articles 38(1)(d) and 45(3)(b)
was applied.
3.           It may be agreed in a
framework contract between the payer and the payment service provider that the
payer has no right to a refund where having given consent to execute the
payment transaction directly to the payment service provider and, where applicable,
information on the future payment transaction was provided or made available in
an agreed manner to the payer for at least four weeks before the due date by
the payment service provider or by the payee.
Article 68
Requests for refunds for payment transactions initiated by or through a
payee
1.           Member States shall ensure
that the payer can request the refund referred to in Article 67 of an
authorised payment transaction initiated by or through a payee for a period of
eight weeks from the date on which the funds were debited.
2.           Within 10 business days of
receiving a request for a refund, the payment service provider shall either
refund the full amount of the payment transaction or provide justification for
refusing the refund, indicating the bodies to which the payer may refer the
matter in accordance with Articles 88 to 91 if not accepting the
justification provided.
The payment service provider's right under the
first subparagraph to refuse the refund shall not apply in the case set out in
the fourth subparagraph of Article 67(1).
CHAPTER 3
Execution
of payment transactions
Section 1
Payment orders and amounts transferred
Article 69
Receipt of payment orders
1.           Member States shall ensure
that the point in time of receipt is the time when the payment order initiated
directly by the payer or on his behalf by a third party payment service
provider or indirectly by or through a payee is received by the payer's payment
service provider. If the point in time of receipt is not on a business day for
the payer's payment service provider, the payment order shall be deemed to have
been received on the following business day. The payment service provider may
establish a cut-off time near the end of a business day beyond which any
payment order received shall be deemed to have been received on the following
business day.
2.           If the payment service
user initiating a payment order and the payment service provider agree that
execution of the payment order shall start on a specific day or at the end of a
certain period or on the day on which the payer has set funds at the payment
service provider's disposal, the point in time of receipt for the purposes of Article 74
is deemed to be the agreed day. If the agreed day is not a business day for the
payment service provider, the payment order received shall be deemed to have
been received on the following business day.
Article 70
Refusal of payment orders
1.           Where the payment service
provider refuses to execute a payment order, the refusal and, if possible, the
reasons for it and the procedure for correcting any factual mistakes that led
to the refusal shall be notified to the payment service user, unless prohibited
by other relevant Union or national legislation.
The payment service provider shall provide or
make available the notification in an agreed manner at the earliest
opportunity, and in any case, within the periods specified in Article 74.
The framework contract may include a condition
that the payment service provider may charge for such a notification if the
refusal is objectively justified.
2.           Where all the conditions
set out in the payer's framework contract are met, the payer's account
servicing payment service provider shall not refuse to execute an authorised
payment order irrespective of whether the payment order is initiated by a
payer, on his behalf by a third party payment service provider or by or through
a payee, unless prohibited by other relevant Union or national legislation.
3.           For the purposes of
Articles 74 and 80 a payment order of which execution has been refused
shall be deemed not to have been received.
Article 71
Irrevocability of a payment order
1.           Member States shall ensure
that the payment service user may not revoke a payment order once it has been
received by the payer's payment service provider, unless otherwise specified in
this Article.
2.           Where the payment
transaction is initiated by a third party payment service provider on behalf of
the payer or by or through the payee, the payer may not revoke the payment
order after giving consent to the third party payment service provider to
initiate the payment transaction or transmitting the payment order or giving
consent to execute the payment transaction to the payee.
3.           However, in the case of a
direct debit and without prejudice to refund rights the payer may revoke the
payment order at the latest by the end of the business day preceding the day
agreed for debiting the funds.
4.           In the case referred to in
Article 69(2) the payment service user may revoke a payment order at the
latest by the end of the business day preceding the agreed day.
5.           After the time limits
specified in paragraphs 1 to 4, the payment order may be revoked only if and
in so far as agreed between the payment service user and the relevant
payment service providers. In the case referred to in paragraphs 2 and 3,
the payee's agreement shall also be required. If agreed in the framework
contract, the relevant payment service provider may charge for revocation.
Article 72
Amounts transferred and amounts received
1.           Member States shall require
the payment service provider(s) of the payer, the payment service provider(s)
of the payee and any intermediaries of the payment service providers to
transfer the full amount of the payment transaction and refrain from deducting
charges from the amount transferred.
2.           However, the payee and the
payment service provider may agree that the relevant payment service provider
deduct its charges from the amount transferred before crediting it to the
payee. In such a case, the full amount of the payment transaction and charges
shall be separated in the information given to the payee.
3.           If any charges other than
those referred to in paragraph 2 are deducted from the amount transferred,
the payment service provider of the payer shall ensure that the payee receives
the full amount of the payment transaction initiated by the payer. In cases
where the payment transaction is initiated by or through the payee, the payment
service provider shall ensure that the full amount of the payment transaction
is received by the payee.
Section 2
Execution time and value date
Article 73
Scope
1.           This Section shall apply
to:
(a)         
payment transactions in euro;
(b)         
national payment transactions in the currency of
the Member State outside the euro area; 
(c)         
payment transactions involving only one currency
conversion between the euro and the currency of a Member State outside the euro
area, provided that the required currency conversion is carried out in the
Member State outside the euro area concerned and, in the case of cross-border
payment transactions, the cross-border transfer takes place in euro.
2.           This Section shall apply
to other payment transactions, unless otherwise agreed between the payment
service user and the payment service provider, with the exception of
Article 78, which is not at the disposal of the parties. However, when the
payment service user and the payment service provider agree on a longer period
than those laid down in Article 74, for intra-Union payment transactions
such period shall not exceed 4 business days following the point in time of
receipt in accordance with Article 69.
Article 74
Payment transactions to a payment account
1.           Member States shall
require the payer's payment service provider to ensure that, after the point in
time of receipt in accordance with Article 69, the amount of the payment
transaction is credited to the payee's payment service provider's account at
the latest by the end of the next business day. These periods may be extended
by a further business day for paper-initiated payment transactions.
2.           Member States shall
require the payment service provider of the payee to value date and make
available the amount of the payment transaction to the payee's payment account
after the payment service provider has received the funds in accordance with
Article 78.
3.           Member States shall
require the payee's payment service provider to transmit a payment order
initiated by or through the payee to the payer's payment service provider
within the time limits agreed between the payee and the payment service provider,
enabling settlement, as far as direct debit is concerned, on the agreed due
date.
Article 75
Absence of payee's payment account with the payment service provider
Where the payee
does not have a payment account with the payment service provider, the funds
shall be made available to the payee by the payment service provider who
receives the funds for the payee within the period specified in Article 74.
Article 76
Cash placed on a payment account
Where a
consumer places cash on a payment account with that payment service provider in
the currency of that payment account, the payment service provider shall ensure
that the amount is made available and value dated immediately after the point
of time of the receipt of the funds. Where the payment service user is not a
consumer, the amount shall be made available and value dated at the latest on
the next business day after the receipt of the funds.
Article 77
National payment transactions
For national
payment transactions, Member States may provide for shorter maximum execution
times than those provided for in this Section.
Article 78
Value date and availability of funds
1.           Member States shall ensure
that the credit value date for the payee's payment account is no later than the
business day on which the amount of the payment transaction is credited to the
payee's payment service provider's account.
The payment service provider of the payee shall
ensure that the amount of the payment transaction is at the payee's disposal
immediately after that amount is credited to the payee's payment service
provider's account, also including payments within one payment service provider.
2.           Member States shall ensure
that the debit value date for the payer's payment account is no earlier than
the point in time at which the amount of the payment transaction is debited to
that payment account.
Section 3
Liability
Article 79
Incorrect unique identifiers
1.           If a payment order is executed
in accordance with the unique identifier, the payment order shall be deemed to
have been executed correctly with regard to the payee specified by the unique
identifier.
2.           If the unique identifier
provided by the payment service user is incorrect, the payment service provider
shall not be liable under Article 80 for non-execution or defective execution of
the payment transaction.
3.           However the payer's
payment service provider shall make reasonable efforts to recover the funds
involved in the payment transaction.
4.           If agreed in the framework
contract, the payment service provider may charge the payment service user for
recovery.
5.           If the payment service
user provides information additional to that specified in Articles 38(1)(a) or 45(2)(b),
the payment service provider shall be liable only for the execution of payment
transactions in accordance with the unique identifier provided by the payment
service user.
Article 80
Non-execution, defective or late execution
1.           Where a payment order is
directly initiated by the payer, the payment service provider shall, without
prejudice to Article 63, Article 79(2) and (3), and Article 83,
be liable to the payer for correct execution of the payment transaction, unless
it can prove to the payer and, where relevant, to the payee's payment service
provider that the payee's payment service provider received the amount of the
payment transaction in accordance with Article 74(1). In that case, the
payee's payment service provider shall be liable to the payee for the correct
execution of the payment transaction.
Where a payment order is initiated by the payer
through a third party payment service provider, the third party payment service
provider shall, without prejudice to Article 63, Article 79(2) and
(3), and Article 83, be liable to the payer for correct execution of the
payment transaction, unless it can prove to the payer and, where relevant, to
the payer’s account servicing payment service provider that the payment
initiation was received by the payer’s account servicing payment service
provider in accordance with Article 69. In that case, the payer’s account
servicing payment service provider shall be liable to the payee for the correct
execution of the payment transaction.
Where the payer's payment service provider or a
third party payment service provider is liable under the first or the second
subparagraph, the relevant payment service provider shall without undue delay
refund to the payer the amount of the non-executed or defective payment
transaction, and, where applicable, restore the debited payment account to the
state in which it would have been had the defective payment transaction not
taken place. The credit value date for the payer’s payment account shall be no
later than the date the amount had been debited.
In case a payment transaction is executed late,
the payer may decide that the amount is value dated on the payee’s payment
account no later than the date the amount should have been value dated in case
of correct execution.
Where the payee's payment service provider is
liable under the first subparagraph, it shall immediately place the amount of
the payment transaction at the payee's disposal and, where applicable, credit
the corresponding amount to the payee's payment account. The amount shall be
value dated no later than the date the amount should have been value dated in
case of correct execution.
In the case of a non-executed or defectively
executed payment transaction where the payment order is initiated by the payer,
the payment service provider shall regardless of liability under this
paragraph, on request, make immediate efforts to trace the payment transaction
and notify the payer of the outcome. This shall be free of charge for the
payer.
2.           Where a payment order is initiated
by or through the payee, the payment service provider shall, without prejudice
to Article 63, Article 79(2) and (3), and Article 83, be liable
to the payee for correct transmission of the payment order to the payment
service provider of the payer in accordance with Article 74(3). Where the
payee's payment service provider is liable under this subparagraph, he shall
immediately re-transmit the payment order in question to the payment service
provider of the payer. In the case of a late transmission of the payment order,
the amount shall be value dated on the payee’s payment account no later than
the date the amount should have been value dated in case of correct execution.
In addition, the payment service provider of
the payee shall, without prejudice to Article 63, Article 79(2) and
(3), and Article 83, be liable to the payee for handling the payment
transaction in accordance with its obligations under Article 78. Where the
payee's payment service provider is liable under this subparagraph, it shall
ensure that the amount of the payment transaction is at the payee's disposal
immediately after that amount is credited to the payee's payment service
provider's account. The amount shall be value dated on the payee’s payment
account no later than the date the amount should have been value dated in case
of correct execution.
In the case of a non-executed or defectively
executed payment transaction for which the payee's payment service provider is
not liable under the first and second subparagraphs, the payer's payment
service provider shall be liable to the payer. Where the payer's payment
service provider is so liable he shall, as appropriate and without undue delay,
refund to the payer the amount of the non-executed or defective payment
transaction and restore the debited payment account to the state in which it
would have been had the defective payment transaction not taken place. The credit
value date for the payer’s payment account shall be no later than the date the
amount had been debited.
In the case of a late executed payment
transaction, the payer may decide that the amount shall be value dated on the
payee’s payment account no later than the date the amount should have been
value dated in case of correct execution.
In the case of a non-executed or defectively
executed payment transaction where the payment order is initiated by or through
the payee, the payment service provider shall, regardless of liability under
this paragraph, on request, make immediate efforts to trace the payment
transaction and notify the payee of the outcome. This shall be free of charge
for the payee.
3.           In addition, payment
service providers shall be liable to their respective payment service users for
any charges for which they are responsible, and for any interest to which the
payment service user is subject as a consequence of non-execution or defective,
including late, execution of the payment transaction.
Article 81
Additional financial compensation
Any financial
compensation additional to that provided for under this Section may be
determined in accordance with the law applicable to the contract concluded
between the payment service user and the payment service provider.
Article 82
Right of recourse
1.           Where the liability of a
payment service provider under Article 80 is attributable to another
payment service provider or to an intermediary, that payment service provider
or intermediary shall compensate the first payment service provider for any
losses incurred or sums paid under Article 80. This shall include
compensation where any of the payment service providers fail to use strong
customer authentication.
2.           Further financial
compensation may be determined in accordance with agreements between payment
service providers and/or intermediaries and the law applicable to the agreement
concluded between them.
Article 83
No liability
Liability under
Chapters 2 and 3 shall not apply in cases of abnormal and unforeseeable
circumstances beyond the control of the party pleading for the application of
those circumstances, the consequences of which would have been unavoidable
despite all efforts to the contrary, or where a payment service provider is
bound by other legal obligations covered by national or Union legislation.
CHAPTER 4
Data protection
Article 84
Data protection
Any processing
of personal data for the purposes of this Directive shall be carried out in
accordance with Directive 95/46/EC, the national rules which transpose
Directive 95/46/EC and Regulation (EC) No 45/2001. 
CHAPTER 5
operational and security and Authentication
Article 85
Security requirements and incident notification
1.           Payment service providers
are subject to Directive [NIS Directive] [OP please insert number of Directive
once adopted] and notably to the risk management and incident reporting
requirements in Articles 14 and 15 therein.
2.           The authority designated
under Article 6(1) of Directive [NIS Directive] [OP please insert number of
Directive once adopted] shall without undue delay inform the competent
authority in the home Member State and EBA of the notifications of NIS
incidents received from payment services providers. 
3.           Upon receipt of the
notification, and where relevant, EBA shall notify the competent authorities in
the other Member States. 
4.           In addition to the
provisions of Article 14(4) of Directive [NIS Directive] [OP please insert
number of Directive once adopted], where the security incident has the
potential of impacting the financial interests of the payment service users of
the payment service provider, it shall without undue delay notify its payment
service users of the incident and inform them of possible mitigation measures
that they can take on their side to mitigate the adverse effects of the
incident.
Article 86
Implementation and reporting 
1.           Member States shall ensure
that payment service providers provide to the authority designated under Article
6(1) of Directive [NIS Directive] [OP please insert number of Directive once
adopted] on a yearly basis updated information of the assessment of the
operational and security risks associated with the payment services they
provide and on the adequacy of the mitigation measures and control mechanisms
implemented in response to these risks. The authority designated under Article
6(1) of Directive [NIS Directive] [OP please insert number of Directive once
adopted] shall without undue delay transmit a copy of this information to the
competent authority in the home Member State.
2.           Without prejudice to
Articles 14 and 15 of Directive [NIS Directive] [OP please insert number of
Directive once adopted], EBA shall, in close cooperation with the ECB, develop
guidelines with regard to the establishment, implementation and monitoring of
the security measures, including certification processes when relevant. It
shall, inter alia, take into account the standards and/or specifications
published by the Commission under Article 16(2) of Directive [NIS Directive]
[OP please insert number of Directive once adopted]. 
3.           EBA shall, in close
cooperation with the ECB, review the guidelines on a regularly basis, but at
least every two years.
4.           Without prejudice to
Articles 14 and 15 of Directive [NIS Directive] [OP please insert number of
Directive once adopted], EBA shall issue guidelines to facilitate payment
service providers in qualifying major incidents and the circumstances under
which a payment institution is required to notify a security incident. Those
guidelines shall be issued by (insert date - two years of the date of entry
into force of this Directive).
Article 87
Authentication
1.           Member
States shall ensure that a payment service provider applies strong customer
authentication when the payer initiates an electronic payment transaction unless
EBA guidelines allow specific exemptions based on the risk involved in the
provided payment service. This also applies to a third party payment service
provider when initiating a payment transaction on behalf of the payer. The
account servicing payment service provider shall allow the third party payment
service provider to rely on the authentication methods of the former when
acting on behalf of the payment service user. 
2.           Where
a payment service provider provides services referred to in point 7 of Annex I,
it shall authenticate itself towards the account servicing payment service
provider of the account owner.
3.           EBA
shall, in close cooperation with the ECB, issue guidelines addressed to payment
service providers as set out in Article 1(1) of this Directive in accordance
with Article 16 of Regulation (EU) No 1093/2010 on state of the art customer
authentication and any exemption to the use of strong customer authentication.
Those guidelines shall be issued by (insert date - two years from the date of
entry into force of this Directive) and be updated on a regular basis as
appropriate.
CHAPTER 6
Out-of-court complaint and redress procedures for the
settlement of disputes
Section 1
Complaint procedures
Article 88
Complaints
1.           Member States shall ensure
that procedures are set up which allow payment service users and other
interested parties, including consumer associations, to submit complaints to
the competent authorities with regard to payment service providers' alleged
infringements of this Directive.
2.           Where appropriate and
without prejudice to the right to bring proceedings before a court in
accordance with national procedural law, the reply from the competent
authorities shall inform the complainant of the existence of the out-of-court
complaint and redress procedures set up in accordance with Article 91.
Article 89
Competent authorities
1.           Member States shall
designate competent authorities to ensure and monitor effective compliance with
this Directive. Those competent authorities shall take all necessary measures
to ensure such compliance. They shall be independent from payment service
providers. They shall be competent authorities within the meaning of Article
4(2) of Regulation (EU) 1039/2010.
2.           The authorities referred
to in paragraph 1 shall possess all the powers necessary for the performance of
their duties. Where more than one competent authority is empowered to ensure
and monitor effective compliance with this Directive, Member States shall
ensure that those authorities collaborate closely so that they can discharge
their respective duties effectively.
3.           In the event of
infringement or suspected infringement of the provisions of national law
adopted pursuant to Titles III and IV, the competent authorities referred
to in paragraph 1 of this Article shall be those of the home Member State
of the payment service provider, except for agents and branches conducted under
the right of establishment where the competent authorities shall be those of
the host Member State.
4.           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] at the latest. 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.
Section 2
Out-of-court redress procedures and sanctions
Article 90
Internal dispute resolution 
1.           Member States shall ensure
that payment service providers put in place adequate and effective consumer
complaint resolution procedures for the settlement of complaints of payment
service users concerning the rights and obligations arising under this
Directive. 
2.           Member States shall
require that payment service providers make every possible effort to reply, in writing,
to the payment service users’ complaints, addressing all points raised, within
an adequate timeframe and at the latest within 15 business days. In exceptional
situations, if the answer cannot be given within 15 business days for reasons
beyond the control of the payment service provider, it shall be required to
send a holding reply, clearly indicating the reasons for a delay in answering
to the complaint and specifying the deadline by which the consumer will receive
the final reply. That deadline may not, in any case, exceed another 30 business
days.
3.           The payment service
provider shall inform the payment service user about the out-of-court redress
entities which are competent to deal with disputes concerning the rights and
obligations arising under this Directive. 
4.           The information referred
to in paragraph 2 shall be mentioned in an easily, directly, prominently and
permanently accessible way on the website of the payment service provider,
where one exists, in the general terms and conditions of the contract between
the payment service provider and the payment service user and in invoices and
receipts relating to such contracts. It shall specify how further information
on the out-of-court redress entity concerned and on the conditions for using it
can be accessed. 
Article 91
Out-of-court redress
1.           Member States shall ensure
that adequate and effective out-of-court complaint and redress procedures for
the settlement of disputes between payment service users and payment service providers
concerning the rights and obligations arising under this Directive are
established according to the relevant national and Union legislation, using
existing bodies where appropriate. Member States shall ensure that such
procedures are applicable to payment service providers and that they also cover
the activities of appointed representatives.
2.           Member States shall require
the bodies referred to in paragraph 1 to cooperate
for the resolution of cross-border disputes concerning the rights and
obligations arising under this Directive.
Article 92
Sanctions
1.           Member States shall ensure
that payment service providers and third party payment providers can be held
liable for breaches of the national provisions adopted pursuant to this
Directive.
2.           Without prejudice to the
right of Member States to impose criminal sanctions, Member States shall ensure
that competent authorities may take appropriate administrative measures and
impose administrative sanctions where payment service providers and third party
payment providers referred to in paragraph 1 breach the national provisions,
adopted in the transposition of this Directive, and shall ensure that they are
applied. Those measures and sanctions shall be effective, proportionate and
dissuasive.
TITLE V
DELEGATED ACTS
Article 93
Delegated Acts
The Commission shall be
empowered to adopt delegated acts in accordance with Article 94 concerning:
(a)         
adaptation of the reference to Recommendation
2003/361/EC in Article 4(29) of this Directive where that Recommendation is
amended;
(b)         
updating of the amounts specified in Articles 27(1)
and 66(1) to take account of inflation and significant market developments.
Article 94
Exercise of the delegation
1.           The power to adopt
delegated acts is conferred on the Commission subject to the conditions laid
down in this Article.
2.           The delegation of power
referred to in Article 93 shall be conferred on the Commission for an
undetermined period of time from [insert date - date of entry into force of the
legislative act]
3.           The delegation of powers
referred to in Article 93 may be revoked at any time by the European Parliament
or by the Council. A decision of revocation shall put an end to the delegation
of the power specified in that decision. It shall take effect the day following
the publication of the decision in the Official Journal of the European Union
or at a later date specified therein. It shall not affect the validity of any
delegated acts already in force.
4.           As soon as it adopts a
delegated act, the Commission shall notify it simultaneously to the European
Parliament and to the Council.
5.           A delegated act adopted
pursuant to Article 93 shall enter into force only if no objection has been
expressed either by the European Parliament or the Council within a period of
two 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 two months at the initiative of the European
Parliament or of the Council.
TITLE VI
FINAL
PROVISIONS 
Article 95
Full harmonisation
1.           Without prejudice to
Article 31(2), Article 34, Article 35(2), Article 48(6),
Article 50(3), Article 51(3), Article 54(2), Article 56(2),
and Articles 77 and 96 insofar as this Directive contains harmonised
provisions, Member States shall not maintain or introduce provisions other than
those laid down in this Directive.
2.           Where a Member State makes
use of any of the options referred to in paragraph 1, it shall inform the
Commission thereof as well as of any subsequent changes. The Commission shall
make the information public on a web-site or other easily accessible means.
3.           Member States shall ensure
that payment service providers do not derogate, to the detriment of payment
service users, from the provisions of national law implementing or
corresponding to provisions of this Directive except where explicitly provided
for therein.
However,
payment service providers may decide to grant more favourable terms to payment
service users.
Article 96
Review clause
The Commission
shall present to the European Parliament, the Council, the European Economic
and Social Committee and the European Central Bank, within five years of entry
into force of this Directive, a report on the application and impact of this
Directive, and in particular on the appropriateness and the impact of the rules
on charges as set out in Articles 55(3) and (4).
Article 97
Transitional provision
1.           Member States shall allow
legal persons who have commenced before [OP please insert final
transposition date], the activities as a payment institution in accordance
with the national laws transposing Directive 2007/64/EC, to continue those
activities in accordance with the requirements provided for in Directive
2007/64/EC without being required to seek authorisation in accordance with
Article 5 of this Directive or to comply with the other provisions laid down or
referred to in Title II of this Directive until [OP please insert final
transposition date + 6 months].
Member States shall require legal persons referred
to in the first subparagraph to submit all relevant information to the
competent authorities in order to allow the latter to assess by [OP please
insert final transposition date + 6 months], whether those legal persons
comply with the requirements laid down in this Directive and, if not, which
measures need to be taken in order to ensure compliance or whether a withdrawal
of authorisation is appropriate.
Legal persons referred to in the first subparagraph,
which upon verification by the competent authorities comply with the
requirements laid down in Title II of this Directive, shall be granted
authorisation and shall be entered in the register of the home Member State and
the EBA register provided for in Articles 13 and 14 of this Directive. Where those
legal persons do not comply with the requirements laid down in Title II of this
Directive by [OP please insert final transposition date + 6 months],
they shall be prohibited in accordance with Article 30 of this Directive to
provide payment services.
2.           Member States may provide
that legal persons referred to in the first subparagraph of paragraph 1 of this
Article shall be automatically granted authorisation and entered in their
national register of the home Member State and the EBA register provided for in
Articles 13 and 14 if the competent authorities already have evidence that the
requirements laid down in Articles 5 and 10 are complied with. The competent
authorities shall inform the entities concerned before the authorisation is
granted.
3.           Member States shall allow
natural or legal persons who have commenced, before [OP Please insert final
date of transposition], pursuing activities as payment institutions within
the meaning of this Directive, and who have been granted a waiver under Article
26 of Directive 2007/64/EC, to continue those activities within the Member
State concerned in accordance with Directive 2007/64/EC, until [OP Please
insert final transposition date + 12 months] without being required to seek
authorisation under Article 5 or 27 of this Directive, or to comply with the
other provisions laid down or referred to in Title II of this Directive. Any
persons who have not received authorisation or have not been granted a waiver
within this period under this Directive, shall be prohibited to provide payment
services in accordance with Article 30 of this Directive.
Article 98
Amendments to Directive 2002/65/EC 
In Article 4 of
Directive 2002/65/EC paragraph 5 is replaced by the following:
‘5. Where Directive [OP please insert No of this
Directive] of the European Parliament and of the Council* is also applicable,
the information provisions under Article 3(1) of this Directive, with the
exception of paragraphs (2)(c) to (g), (3)(a), (d) and (e), and (4)(b), shall
be replaced with Articles 37, 38, 44 and 45 of that Directive.’»
* Directive … of the European Parliament and of
the Council of [insert full title](OJ L..).
Article 99
Amendment to Directive 2013/36/EU 
In Annex I
to Directive 2013/36/EU of the European Parliament and of the Council[50], point 4 is replaced by the
following:
         ‘(4)    Payment services as
defined in Article 4(3) of Directive 2014/XX/EU of the European Parliament
and of the Council* [OP please insert name and number of this Directive once
adopted] 
*Directive … of the European Parliament
and of the Council of …
Article 100
Amendments to Directive 2009/110/EC
In Article 18 of Directive 2009/110/EC, the following
paragraph 4 is added:
‘4. Member States shall allow electronic money
institutions that have taken up, before the adoption of Directive [OP please
insert No of this Directive] of the European Parliament of the Council *, activities in accordance
with this Directive and Directive 2007/64/EC in the Member State in which their
head office is located, to continue those activities in that member State or in
another Member State without being required to seek authorisation in accordance
with Article 3 of this Directive or to comply with the other requirements laid
down or referred to in Title II of this Directive until[OP please insert final
transposition date + 6 months] .
Member States shall require legal persons referred to in
the first subparagraph to submit all relevant information to the competent
authorities in order to allow the later to assess, [OP please insert final
transposition date + 6 months], whether those legal persons comply with the
requirements laid down in Title II of this Directive, and if not, which
measures need to be taken in order to ensure compliance or whether a withdrawal
of authorisation is appropriate.
Legal persons referred to in the first subparagraph,
which upon verification by the competent authorities comply with the
requirements laid down in Title II of this Directive, shall be granted
authorisation and shall be entered in the register. Where those legal persons
do not comply with the requirements laid down in Title II of this Directive by [OP
please insert final transposition date + 6 months], they shall be prohibited
from issuing electronic money.’
* Directive … of the European Parliament of the Council
of … [insert full title] (OJ L …)
**                                                           
Article 101
Repeal
Directive 2007/64/EC is repealed with effect from [OP
please insert date – day after the date set out in the first subparagraph of
Article 102(2)].
Any reference
to the repealed Directive shall be construed as a reference to this Directive
and shall be read in accordance with the correlation table in Annex II.
Article 102
Transposition
1.           Member States shall adopt
and publish, by [two years after adoption] at the latest the laws,
regulations and administrative provisions necessary to comply with this
Directive. They shall forthwith communicate to the Commission the text of those
provisions.
2.           They shall apply those
provisions from […].
When Member States adopt those provisions, they
shall contain a reference to this Directive or shall be accompanied by such
reference on the occasion of their official publication. Member States shall
determine how such reference is to be made.
3.           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 103
This Directive
shall enter into force on the twentieth day following that of its publication
in the Official Journal of the European Union.
Article 104
This Directive
is addressed to the Member States.
Done at Brussels, 
For the European Parliament                       For
the Council
The President                                                 The
President
ANNEX I
PAYMENT SERVICES (DEFINITION
3 IN ARTICLE 4)
1.           Services enabling cash to
be placed on a payment account as well as all the operations required for
operating a payment account.
2.           Services enabling cash
withdrawals from a payment account as well as all the operations required for
operating a payment account.
3.           Execution of payment
transactions, including transfers of funds on a payment account with the user's
payment service provider or with another payment service provider:
(a)         
execution of direct debits, including one-off
direct debits,
(b)         
execution of payment transactions through a
payment card or a similar device,
(c)         
execution of credit transfers, including
standing orders.
4.           Execution of payment
transactions where the funds are covered by a credit line for a payment service
user:
(a)         
execution of direct debits, including one-off
direct debits,
(b)         
execution of payment transactions through a
payment card or a similar device,
(c)         
execution of credit transfers, including
standing orders.
5.           Issuing of payment
instruments and/or acquiring of payment transactions. 
6.           Money remittance.
7.           Services based on access
to payment accounts provided by a payment service provider who is not the
account servicing payment service provider, in the form of:
(a)         
payment initiation services;
(b)         
account information services.
ANNEX II
CORRELATION TABLE
 This Directive || Directive 2007/64/EC ||   
 Article 1 (1) || Article 1 (1) ||   
 Article 1 (2) || Article 1 (2) ||   
 Article 2 (1) || Article 2 (1) ||   
 Article 2 (2) || Article 2 (2) ||   
 Article 2 (3) || Article 2 (3) ||   
 Article 3 o) deleted || Article 3 ||   
 Article 4 Definitions added || Article 4 ||   
   ||   || Article 5 - Rules added for applications for authorisations || Article 5 
 Article 6 || Article 6 ||   
 Article 7 (1) || Article 7 (1) ||   
 Article 7 (2) || Article 7 (2) ||   
 Article 7 (3) || Article 7 (3) ||   
 Article 8 (1) || Article 8 (1) ||   
 Article 8 (2) || Article 8 (2) ||   
 Article 8 (3) || Article 8 (3) ||   
 Article 9(1) || Article 9(1) ||   
   ||   || Article 9(2) Article 9(3) & (4) deleted || Article 9(2) 
 Article 10 (1) || Article 10 (1) ||   
 Article 10 (2) || Article 10 (2) ||   
 Article 10 (3) || Article 10 (3) ||   
 Article 10 (4) || Article 10 (4) ||   
 Article 10 (5) || Article 10 (5) ||   
 Article 10 (6) || Article 10 (6) ||   
 Article 10 (7) || Article 10 (7) ||   
 Article 10 (8) || Article 10 (8) ||   
 Article 10 (9) || Article 10 (9) ||   
 Article 11 || Article 11 ||   
 Article 12 (1) || Article 12 (1) ||   
 Article 12 (2) || Article 12 (2) ||   
 Article 12 (3) || Article 12 (3) ||   
 Article 13 || Article 13 ||   
 Article 14 (1) ||   ||   
 Article 14 (2) ||   ||   
 Article 14 (3) ||   ||   
 Article 14 (4) ||   ||   
 Article 15 || Article 14 ||   
 Article 16 (1) || Article 15 (1) ||   
 Article 16 (2) || Article 15 (2) ||   
 Article 16 (3) || Article 15 (3) ||   
 Article 16 (4) || Article 15 (4) ||   
 Article 17 (1) || Article 16 (1) ||   
 Article 17 (2) || Article 16 (2) ||   
 Article 17 (3) ||   ||   
 Article 17 (4) || Article 16 (3) ||   
 Article 17 (5) || Article 16 (4) ||   
 Article 17 (6) || Article 16 (5) ||   
 Article 18 (1) || Article 17 (1) ||   
 Article 18 (2) || Article 17 (2) ||   
 Article 18 (3) || Article 17 (3) ||   
 Article 18 (4) || Article 17 (4) ||   
 Article 18 (5) || Article 17 (5) ||   
 Article 18 (6) || Article 17 (6) ||   
 Article 18 (7) || Article 17 (7) ||   
 Article 18 (8) || Article 17 (8) ||   
 Article 18 (9) ||   ||   
 Article 19 (1) || Article 18 (1) ||   
 Article 19 (2) || Article 18 (2) ||   
 Article 20 || Article 19 ||   
 Article 21 (1) || Article 20 (1) ||   
 Article 21 (2) || Article 20 (2) ||   
 Article 21 (3) || Article 20 (3) ||   
 Article 21 (4) || Article 20 (4) ||   
 Article 21 (5) || Article 20 (5) ||   
 Article 22 (1) || Article 21 (1) ||   
 Article 22 (2) || Article 21 (2) ||   
 Article 22 (3) || Article 21 (3) ||   
 Article 23 (1) || Article 22 (1) ||   
 Article 23 (2) || Article 22 (2) ||   
 Article 23 (3) || Article 22 (3) ||   
 Article 24 (1) || Article 23 (1) ||   
 Article 24 (2) || Article 23 (2) ||   
 Article 25 (1) || Article 24 (1) ||   
 Article 25 (2) - d) deleted || Article 24 (2) ||   
 Article 26 (1) || Article 25 (1) ||   
 Article 26 (2) || Article 25 (2) ||   
 Article 26 (3) || Article 25 (3) ||   
 Article 26 (4) || Article 25 (4) ||   
 Article 26 (5) || Article 25 (5) ||   
 Article 26 (6) ||   ||   
 Article 26 (7) ||   ||   
 Article 26 (8) ||   ||   
 Article 26 (9) ||   ||   
 Article 27 (1) || Article 26 (1) ||   
 Article 27 (2) || Article 26 (2) ||   
 Article 27 (3) || Article 26 (3) ||   
 Article 27 (4) || Article 26 (4) ||   
 Article 27 (5) || Article 26 (5) ||   
 Article 27 (6) || Article 26 (6) ||   
 Article 28 || Article 27 ||   
 Article 29 (1) || Article 28 (1) ||   
 Article 29 (2) – c) deleted || Article 28 (2) ||   
 Article 30 (1) || Article 29 ||   
 Article 30 (2) ||   ||   
 Article 31 (1) || Article 30 (1) ||   
 Article 31 (2) || Article 30 (2) ||   
 Article 31 (3) || Article 30 (3) ||   
 Article 32 || Article 31 ||   
 Article 33 (1) || Article 32 (1) ||   
 Article 33 (2) || Article 32 (2) ||   
 Article 33 (3) || Article 32 (3) ||   
 Article 34 || Article 33 ||   
 Article 35 (1) || Article 34 (1) ||   
 Article 35 (2) || Article 34 (2) ||   
 Article 36 (1) || Article 35 (1) ||   
 Article 36 (2) || Article 35 (2) ||   
 Article 37 (1) || Article 36 (1) ||   
 Article 37 (2) || Article 36 (2) ||   
 Article 37 (3) || Article 36 (3) ||   
 Article 38 (1) || Article 37 (1) ||   
 Article 38 (2) ||   ||   
 Article 38 (3) || Article 37 (2) ||   
 Article 39 ||   ||   
 Article 40 ||   ||   
 Article 41 || Article 38 ||   
 Article 42 || Article 39 ||   
 Article 43 || Article 40 ||   
 Article 44 (1) || Article 41 (1) ||   
 Article 44 (2) || Article 41 (2) ||   
 Article 44 (3) || Article 41 (3) ||   
 Article 45 (1) || Article 42 (1) ||   
 Article 45 (2) || Article 42 (2) ||   
 Article 45 (3) || Article 42 (3) ||   
 Article 45 (4) || Article 42 (4) ||   
 Article 45 (5) || Article 42 (5) ||   
 Article 45 (6) || Article 42 (6) ||   
 Article 45 (7) || Article 42 (7) ||   
 Article 46 || Article 43 ||   
 Article 47 (1) || Article 44 (1) ||   
 Article 47 (2) || Article 44 (2) ||   
 Article 47 (3) || Article 44 (3) ||   
 Article 48 (1) || Article 45 (1) ||   
 Article 48 (2) || Article 45 (2) ||   
 Article 48 (3) || Article 45 (3) ||   
 Article 48 (4) || Article 45 (4) ||   
 Article 48 (5) || Article 45 (5) ||   
 Article 48 (6) || Article 45 (6) ||   
 Article 49 || Article 46 ||   
 Article 50 (1) || Article 47 (1) ||   
 Article 50 (2) || Article 47 (2) ||   
 Article 50 (3) || Article 47 (3) ||   
 Article 51 (1) || Article 48 (1) ||   
 Article 51 (2) || Article 48 (2) ||   
 Article 51 (3) || Article 48 (3) ||   
 Article 52 (1) || Article 49 (1) ||   
 Article 52 (2) || Article 49 (2) ||   
 Article 53 (1) || Article 50 (1) ||   
 Article 53 (2) || Article 50 (2) ||   
 Article 54 (1) || Article 51 (1) ||   
 Article 54 (2) || Article 51 (2) ||   
 Article 54 (3) || Article 51 (3) ||   
 Article 54 (4) || Article 51 (4) ||   
 Article 55 (1) || Article 52 (1) ||   
 Article 55 (2) || Article 52 (2) ||   
 Article 55 (3) || Article 52 (3) ||   
 Article 55 (4) ||   ||   
 Article 56 (1) || Article 53 (1) ||   
 Article 56 (2) || Article 53 (2) ||   
 Article 56 (3) || Article 53 (3) ||   
 Article 57 (1) || Article 54 (1) ||   
 Article 57 (2) || Article 54 (2) ||   
 Article 57 (3) || Article 54 (3) ||   
 Article 57 (4) || Article 54 (4) ||   
 Article 58 (1) ||   ||   
 Article 58 (2) ||   ||   
 Article 58 (3) ||   ||   
 Article 58 (4) ||   ||   
 Article 59 (1) ||   ||   
 Article 59 (2) ||   ||   
 Article 59 (3) ||   ||   
 Article 60 (1) || Article 55 (1) ||   
 Article 60 (2) || Article 55 (2) ||   
 Article 60 (3) || Article 55 (3) ||   
 Article 60 (4) || Article 55 (4) ||   
 Article 61 (1) || Article 56 (1) ||   
 Article 61 (2) || Article 56 (2) ||   
 Article 62 (1) || Article 57 (1) ||   
 Article 62 (2) || Article 57 (2) ||   
 Article 63 (1) || Article 58 ||   
 Article 63 (2) ||   ||   
 Article 64 (1) || Article 59 (1) ||   
 Article 64 (2) || Article 59 (2) ||   
 Article 65 (1) || Article 60 (1) ||   
 Article 65 (2) ||   ||   
 Article 65 (3) || Article 60 (2) ||   
 Article 66 (1) || Article 61 (1) & (2) ||   
 Article 66 (2) || Article 61 (4) & (5) ||   
 Article 67 (1) || Article 62 (1) ||   
 Article 67 (2) || Article 62 (2) ||   
 Article 67 (3) || Article 62 (3) ||   
 Article 68 (1) || Article 63 (1) ||   
 Article 68 (2) || Article 63 (2) ||   
 Article 69 (1) || Article 64 (1) ||   
 Article 69 (2) || Article 64 (2) ||   
 Article 70 (1) || Article 65 (1) ||   
 Article 70 (2) || Article 65 (2) ||   
 Article 70 (3) || Article 65 (3) ||   
 Article 71 (1) || Article 66 (1) ||   
 Article 71 (2) || Article 66 (2) ||   
 Article 71 (3) || Article 66 (3) ||   
 Article 71 (4) || Article 66 (4) ||   
 Article 71 (5) || Article 66 (5) ||   
 Article 72 (1) || Article 67 (1) ||   
 Article 72 (2) || Article 67 (2) ||   
 Article 72 (3) || Article 67 (3) ||   
 Article 73 (1) || Article 68 (1) ||   
 Article 73 (2) || Article 68 (2) ||   
 Article 74 (1) || Article 69 (1) ||   
 Article 74 (2) || Article 69 (2) ||   
 Article 74 (3) || Article 69 (3) ||   
 Article 75 || Article 70 ||   
 Article 76 || Article 71 ||   
 Article 77 || Article 72 ||   
 Article 78 (1) || Article 73 (1) ||   
 Article 78 (2) || Article 73 (2) ||   
 Article 79 (1) || Article 74 (1) ||   
 Article 79 (2) || Article 74 (2) ||   
 Article 79 (3) || Article 74 (2) ||   
 Article 79 (4) || Article 74 (2) ||   
 Article 79 (5) || Article 74 (3) ||   
 Article 80 (1) || Article 75(1) ||   
 Article 80 (2) || Article 75 (2) ||   
 Article 80 (3) || Article 75 (3) ||   
 Article 81 || Article 76 ||   
 Article 82 (1) || Article 77 (1) ||   
 Article 82 (2) || Article 77 (2) ||   
 Article 83 || Article 78 ||   
 Article 84 || Article 79 ||   
 Article 85 (1) ||   ||   
 Article 85 (2) ||   ||   
 Article 85 (3) ||   ||   
 Article 85 (4) ||   ||   
 Article 86 (1) ||   ||   
 Article 86 (2) ||   ||   
 Article 86 (3) ||   ||   
 Article 86 (4) ||   ||   
 Article 87 (1) ||   ||   
 Article 87 (2) ||   ||   
 Article 87 (3) ||   ||   
 Article 88 (1) || Article 80 (1) ||   
 Article 88 (2) || Article 80 (2) ||   
 Article 89 (1) ||   ||   
 Article 89 (2) ||   ||   
 Article 89 (3) || Article 82 (2) ||   
 Article 89 (4) ||   ||   
 Article 90 (1) ||   ||   
 Article 90 (2) ||   ||   
 Article 90 (3) ||   ||   
 Article 91 (1) || Article 83 (1) ||   
 Article 91 (2) || Article 83 (2) ||   
 Article 92 (1) ||   ||   
 Article 92 (2) ||   ||   
 Article 93 || Article 84 ||   
 Article 94 (1) ||   ||   
 Article 94 (2) ||   ||   
 Article 94 (3) ||   ||   
 Article 94 (4) ||   ||   
 Article 94 (5) ||   ||   
 Article 95 (1) || Article 86 (1) ||   
 Article 95 (2) || Article 86 (2) ||   
 Article 95 (3) || Article 86 (3) ||   
 Article 96 || Article 87 ||   
 Article 97 ||  Article 88 ||   
 Article 98 (1) ||   ||   
 Article 98 (2) ||   ||   
 Article 99 (1) ||   ||   
 Article 99 (2) ||   ||   
   ||   ||   
 Article 101 ||   ||   
 Article 102 (1) || Article 94 (1) ||   
 Article 102 (2) || Article 94 (1) ||   
 Article 102 (3) || Article 94 (2) ||   
 Article 103 || Article 95 ||   
 Article 104 || Article 96 ||   
 Annex I || Annex ||   
ANNEX III
Legislative financial statement ‘Agencies’
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
1.2.        Policy area(s) concerned
in the ABM/ABB structure
1.3.        Nature of the
proposal/initiative 
1.4.        Objective(s) 
1.5.        Grounds for the
proposal/initiative 
1.6.        Duration and financial
impact 
1.7.        Management mode(s)
envisaged 
2.           MANAGEMENT MEASURES 
2.1.        Monitoring and reporting rules

2.2.        Management and control
system 
2.3.        Measures to prevent fraud
and irregularities 
3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE 
3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected 
3.2.        Estimated impact on
expenditure 
3.2.1.     Summary of estimated impact
on expenditure 
3.2.2.     Estimated impact on
[body]'s appropriations 
3.2.3.     Estimated impact on
[body]'s human resources
3.2.4.     Compatibility with the
current multiannual financial framework
3.2.5.     Third-party contributions 
3.3.        Estimated impact on
revenue
LEGISLATIVE FINANCIAL STATEMENT 
1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE 
1.1.        Title of the
proposal/initiative 
Directive
of the European Parliament and the Council on payment services in the internal
market amending Directives 2002/65/EC, and 2013/36/EU and repealing Directive 2007/64/EC.
1.2.        Policy
area(s) concerned in the ABM/ABB structure[51] 
Internal
Market – retail financial services
Consumer
protection – financial services
1.3.        Nature
of the proposal/initiative
¨ The
proposal/initiative relates to a new action 
1.4.        Objective(s)
1.4.1.     The
Commission’s multiannual strategic objective(s) targeted by the
proposal/initiative 
Promote
smart and inclusive growth 
Foster
economic, social and territorial cohesion 
1.4.2.     Specific
objective(s) and ABM/ABB activity(ies) concerned 
Develop an EU-wide market for electronic
payments, which will enable consumers, retailers and other market players to
enjoy the full benefits of the EU internal market
Address standardisation and interoperability gaps
for card, internet and mobile payments.
Eliminate hurdles for competition, in particular
for card and internet payments.
Align charging and steering practices for payment
services across the EU.
Ensure that emerging types of payment services
and instruments are covered by the regulatory framework for retail payments in
the EU.
Ensure a consistent application of the
legislative framework (PSD) and align the practical operation of the licensing
and supervisory rules for payment services across Member States.
Ensure adequate and consistent protection of
consumer interests in the context of payment transactions, including extending
regulatory protection to new channels and innovative payment services.
1.4.3.     Expected result(s)
and impact
Specify the
effects which the proposal/initiative should have on the beneficiaries/groups
targeted.
The
proposed amendments will bring more legal clarity and a level playing field,
leading to downward convergence of costs and prices for payment services users,
more choice and transparency of payment services, facilitating the provision of
innovative payment services, and to ensure secure and transparent payment
services. The proposed measures seek to do so in a technologically neutral
manner that will remain relevant as payment services evolve further. These
objectives will be achieved by updating and complementing the existing
framework on payments services; providing for rules that enhance transparency,
innovation and security in the field of retail payments and improving
consistency between national rules, with a particular emphasis on the
legitimate needs of consumers. 
1.4.4.     Indicators
of results and impact
Once the
Directive has been implemented by at least a large majority of Member States,
the Commission shall assess the implementation and impact of this Directive, on
the basis of a conformity assessment of the national implementing measures and
a study on the impact of the Directive on the market. It shall report to the European
Parliament, the Council, the European Economic and Social Committee and the
European Central Bank on the results and the proposed follow up.
1.5.        Grounds
for the proposal/initiative 
1.5.1.     Requirement(s)
to be met in the short or long term
The Directive will improve the functioning of the internal
market for payment services and more broadly for all goods and services given
the need for innovative, efficient and secure means of payments to exist. In
particular it aims to: 
¨         Ensure
a competitive level playing field between all categories of payment service
providers, including new emerging providers, which in turn increases the
choice, efficiency, transparency and security of retail payments. 
¨         Facilitate
the provision of innovative card, internet and mobile payment services across
borders by ensuring a Single Market for all retail payments
Furthermore, it will strike the right
balance between a high level of consumer protection and the competitiveness of
enterprises, thereby limiting the discretion of merchants to apply charges on
the use of payment instruments to the costs at hand.
It will also facilitate the economic transactions within
the Union and this will contribute to the attainment of the wider objectives of
the EU 2020 strategy and the promotion of new growth.
1.5.2.     Added value of EU
involvement
In
accordance with the principles of subsidiarity and proportionality as set out
in Article 5 of the TEU, the objectives of the proposal cannot be sufficiently
achieved by Member States and can therefore be better achieved at the Union
level. An integrated EU market for electronic retail payments market
contributes to the aim of Article 3 of the Treaty on the European Union
stipulating an internal market. The benefits of market integration include more
competition between PSPs and more choice, innovation and security for payment
service users, especially consumers. By its nature an integrated payments
market, based on networks that reach beyond national borders, requires an EU-wide
approach as the applicable principles, rules, processes and standards have to
be consistent across all Member States in order to achieve legal certainty and
a level playing field for all market participants. The alternative to a
Community-wide approach would be a system of multilateral or bilateral
agreements the complexity and costs of which would be prohibitive as compared
to legislation at European level. A possible intervention at EU level therefore
complies with the subsidiarity principle.
1.5.3.     Lessons
learned from similar experiences in the past
The
analysis of the current regulatory framework and of the Payment Service
Directive, in particular, has highlighted the following issues:
-
Inconsistent application of the existing rules across Member States due to a
high number of options and often very general criteria of application. Notably
certain exemptions set out in the PSD appear too general or outdated in respect
to market developments and are being interpreted very differently. Gaps in the
scope of application also arise for payments with one leg of the transaction
located outside the EEA and payments in non-EU currencies, leading to continued
market fragmentation, regulatory arbitrage, and distortions of competition. 
- Legal
vacuum for certain newly emerged internet service providers, such as third
party providers offering online banking based payment initiation. These
services represent a viable and often cheaper payment alternative to card
payments, attractive also for consumers who do not dispose of cards. However,
the current business models create some concerns amongst banks and certain
Member States as the providers are currently not subject to the current legal
framework. The legal vacuum risks impeding innovation and appropriate market
access conditions.
- Lack of
standardisation and inter-operability between different payments solutions
(card, internet and mobile payments) in varying aspects and to different
degrees especially at cross-border level, exacerbated by weak governance
arrangements for the EU retail payments market.
- Diverse
and inconsistent charging practices (for the use of a specific payment
instrument applied by merchants) between Member States (where around half of EU
Member States allow and the other half forbids surcharging) leading to considerable
confusion for consumers when they shop abroad or on the internet and an
un-level playing field.
- In the
area of payment cards, several restrictive business rules and practices
distorting competition (regarding MIFs and rules on choice and flexibility of
merchants regarding card acceptance).
The review
of the European framework and notably of the PSD and the consultation on the
Commission Green Paper on card, internet and mobile payments in 2012 have thus
led to the conclusion that further measures and regulatory updates, including
adjustments to the PSD are required so that the payments framework can better
serve the needs of an effective European payments market, fully contributing to
a payments environment which nurtures competition, innovation and security.
1.5.4.     Compatibility
and possible synergy with other appropriate instruments
The legal
framework established by the PSD, the cross-border payments Regulation (EC) No
924/2009 and the Second Electronic Money Directive 2009/110/EC have already resulted
in significant progress regarding the overall integration of the European
retail payments market. The SEPA migration end-date Regulation (EU) No 260/2012
sets migration deadlines for pan-European credit transfers and pan-European
direct debits, fully replacing national schemes for national and cross border
euro payments within the EU as of 2014. The regulatory framework is
complemented by a number of investigations and decisions under EU competition
law by the Commission over the past years in the field of retail payments. 
However,
the retail payments market is very dynamic and experienced a significant
innovation pace in the last few years. Important areas of the payments market,
especially card payments and new means of payments, such as internet and mobile
payments, are often still fragmented along national borders making it difficult
for innovative and easy-to-use digital payment services to develop efficiently
and to provide consumers and retailers with effective, convenient and secure
payment methods (with the possible exception of credit cards) at pan-European
level to purchase an expanding variety of goods and services. The latest
developments in these markets have also highlighted certain regulatory gaps in
the current legal framework for payments and market failures in the markets for
card, internet and mobile payments which this initiative aims to address.
1.6.        Duration and
financial impact 
¨ Proposal/initiative of limited duration 
¨      Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY 
¨      Financial impact from YYYY to YYYY
¨ Proposal/initiative of unlimited
duration
1.7.        Management mode(s)
planned [52]

For the 2015 budget
¨ Centralised indirect management with the delegation of implementation tasks to :
¨ executive agencies 
¨ Shared management with the Member States
¨ Indirect management by entrusting budget implementation
tasks to:
¨ international organisations and their agencies (to be specified);
¨the EIB and the European Investment Fund;
¨ bodies referred to in Articles 208 and 209;
¨ public law bodies;
¨ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;
¨ bodies governed by the private law of a Member State that are
entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;
¨ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.
2.           Management
measures 
2.1.        Monitoring and
reporting rules 
Specify frequency and
conditions
Article 81 of the Regulation
establishing the European Banking Authority (EBA) requires the Commission by 2
January 2014, and every 3 years thereafter, to publish a general report on the
experience acquired as a result of the operation of EBA.
To this end, the Commission will publish a general report that will be
forwarded to the European Parliament and to the Council. Management and control
system 
2.1.1.     Risk(s) identified 
In relation to the legal,
economical, efficient and effective use of appropriations resulting from the
proposal it is expected that the proposal would not bring about new risks that
would not be currently covered by an EBA existing internal control framework.
2.1.2.     Control method(s)
envisaged 
Management
and control systems as provided for in the Regulation establishing the European
Banking Authority (1093/2010) will apply.
2.2.        Measures
to prevent fraud and irregularities
Specify
existing or envisaged prevention and protection measures.
For the purposes of combating fraud,
corruption and any other illegal activity, the provisions of Regulation (EC) No
1073/1999 of the European Parliament and of the Council of 25 May 1999
concerning investigations conducted by the European Anti-Fraud Office (OLAF)
shall apply to the EBA without any restriction.
EBA shall accede to the
Interinstitutional Agreement of 25 May 1999 between the European Parliament,
the Council of the European Union and the Commission of the European
Communities concerning internal investigations by the European Anti-Fraud
Office (OLAF) and shall immediately adopt appropriate provisions for all EBA
staff.
The funding decisions and the
agreements and the implementing instruments resulting from them shall
explicitly stipulate that the Court of Auditors and OLAF may, if need be, carry
out on-the-spot checks on the beneficiaries of monies disbursed by EBA as well
as on the staff responsible for allocating these monies.
Articles 64 and 65 of the Regulation
establishing EBA set out the provisions on implementation and control of the
EBA budget and applicable financial rules.
3.           Estimated
financial impact of the proposal/initiative
3.1.        Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected
Existing budget lines 
In order of
multiannual financial framework headings and budget lines.
 Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution 
 Number [Heading………………………...……………] || Diff./non-diff. ([53]) || From EFTA countries[54] || From candidate countries[55] || From third countries || Within the meaning of Article 21(2)(b) of the Financial Regulation 
 1.a || 12.03.02 European Banking Authority || Diff. || YES || YES || NO || NO 
3.2.        Estimated impact on
expenditure 
The new tasks will be carried out with the
human resources available within the annual budgetary allocation procedure, in
the light of budgetary constraints, which are applicable to all EU bodies and
in line with the financial programming for agencies.
3.2.1.     Summary
of estimated impact on expenditure 
EUR million (to
three decimal places)
 Heading of multiannual financial framework || 1.a || Competiveness for Growth and Jobs 
 DG MARKT ||   ||   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 12.03.02 || Commitments || (1) || 0.160 || 0.150 || 0.075 || 0.075 || 0.075 || 0.075 || 0.609 
 Payments || (2) || 0.160 || 0.150 || 0.075 || 0.075 || 0.075 || 0.075 || 0.609 
 TOTAL appropriations for DG MARKT || Commitments || =1+1a +3a || 0.160 || 0.150 || 0.075 || 0.075 || 0.075 || 0.075 || 0.609 
 Payments || =2+2a +3b || 0.160 || 0.150 || 0.075 || 0.075 || 0.075 || 0.075 || 0.609 
EUR million (to
three decimal places)
   ||   ||   || 2015[56] || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL 
 TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.160 || 0.150 || 0.075 || 0.075 || 0.075 || 0.075 || 0.609 
 Payments || 0.160 || 0.150 || 0.075 || 0.075 || 0.075 || 0.075 || 0.609 
3.2.2.     Estimated
impact on [body]’s aprropriations 
¨         The proposal/initiative does not require the use of
operational appropriations 
3.2.3.     Estimated
impact on [body]’s human resources
3.2.3.1.  Summary 
¨         The proposal/initiative does not require the use of
appropriations of an administrative nature 
3.2.3.2.  Estimated
requirements of human resources for the parent DG
¨         The proposal/initiative does not require the use of human
resources. 
3.2.4.     Comptability
with the current multiannual financial framework
¨         Proposal/initiative is compatible the current multiannual
fiancial framework.
3.2.5.     Third-party
contributions 
The proposal/initiative provides for the
co-financing estimated below:
Appropriations in EUR million
(to 3 decimal places)
   || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total 
 Member States || 0.240 || 0.225 || 0.112 || 0.112 || 0.112 || 0.112 || 0.913 
 TOTAL appropriations cofinanced || 0.240 || 0.225 || 0.112 || 0.112 || 0.112 || 0.112 || 0.913 
3.3.        Estimated impact on
revenue 
¨         Proposal/initiative has no financial impact on revenue.
Annex 1
In
the review of the PSD, the following specific responsibilities and tasks have
been defined for EBA,
established by Regulation (EU) No 1093/2010 of the
European Parliament and of the Council. 
Article 14 – develop and operate a web portal:
-           Develop and operate a web
portal serving as EU electronic access point interconnecting national public
registers set out under Article 13 and develop draft regulatory standards
setting technical requirements regarding access to the information contained in
these public registers.
Article 26 – obligations of EBA in context of
"passporting" procedure:
–                        
Preparation of guidelines concerning the
question whether the taking up of activities in another Member State under the
"passporting" regime constitutes the exercise of the right of
establishment or freedom to provide services. Those guidelines shall be issued
within two years of the date of entry into force of this Directive.
–                        
Development of draft regulatory
technical standards on the co-operation and exchange of information of the
competent authorities of the home Member State referred to in Article 26
paragraph 1 with those of the host Member State in accordance with Article 26
and Article 18, specifying the
method, means and details of cooperation in the notification of payment
institutions operating on a cross border basis and notably the scope and
treatment of information to be submitted, including a common terminology and
standard notification templates to ensure a consistent
and efficient notification process. EBA shall submit those draft regulatory technical standards to the
Commission within two years of the date of entry into force of this Directive.
–                        
Development of draft
regulatory technical standards on the cooperation and exchange of information
of the competent authorities of the home Member State with those of the host
Member State in accordance with Article 26 paragraphs 2 to 4 and Article 22, specifying the method, means and details
of cooperation in the supervision of payment institutions operating on a cross
border basis and notably the scope and treatment of information to be
exchanged, to ensure consistent and efficient supervision of payment
institutions exercising cross-border provision of payment services. EBA shall
submit those draft regulatory technical standards to the Commission within two
years of the date of entry into force of this Directive.
Article 86 and 87 – development of security guidelines and issuance
of guidelines on the handling of major security incidents by Payment Service
Providers (PSPs):
–                        
Development of guidelines with regard to the
establishment, implementation and monitoring of the security measures under
Article 85, including certification processes when relevant in line with the
principles referred to in Article 85(3). It shall, inter alia, take into
account the standards and/or specifications published by the Commission under
Article 16(2) of the NIS Directive. EBA shall, in close cooperation with the
ECB, review the guidelines on a regularly basis, but at least every two years.
–                        
Issuance of guidelines to facilitate payment
service providers in qualifying major incidents and the circumstances under
which a payment institution is required to notify a security incident. Those
guidelines shall be issued within two years of the date of entry into force of
this Directive.
–                        
In close cooperation with the ECB, issuance of
guidelines addressed to payment service providers as set out in Article 1(1) of
this Directive in accordance with Article 16 of Regulation (EU) No 1093/2010 on
state of the art customer authentication and any exemption to the use of strong
customer authentication. Those guidelines shall be issued within two years from
the date of entry into force of this Directive and be updated on a regular
basis as appropriate.
[1]               Directive
2007/64/EC of the European Parliament and of the Council of 13 November 2007 on
payment services in the internal market (OJ L 319,
5.12.2007, p.1).
[2]               Directive 2009/110/EC of the European Parliament and
of the Council of 16 September 2009 on the taking up, pursuit and prudential
supervision of the business of electronic money institutions amending
Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L
267, 10.10.2009, p. 7).
[3]               Regulation (EC) No 924/2009 of the European
Parliament and of the Council of 16 September 2009 on cross-border payments in
the Community and repealing Regulation (EC) No 2560/2001 (OJ L 266, 9.10.2009,
p. 11).
[4]               Regulation (EU) No 260/2012 of the European
Parliament and of the Council of 14 March 2012 establishing technical and
business requirements for credit transfers and direct debits in euro and
amending Regulation (EC) No 924/2009 (OJ L 94, 30.3.2012, p.22).
[5]               European Commission Green Paper ‘Towards an
integrated European market for card, internet and mobile payments, COM(2011) 941 final.
[6]               European Commission Communication "Single Market
Act II - Together for new growth", COM(2012) 573 final. 
[7]               European Commission Communication: "A Digital
Agenda for Europe", COM (2010) 245 final.
[8]               European Commission “Proposal for a Regulation of the
European Parliament and of the Council on electronic identification and trust
services for electronic transactions in the internal market”, COM (2012) 238
final.
[9]               European Commission “Proposal for a Directive of the
European Parliament and of the Council concerning measures to ensure a high
common level of network and information security across the Union, COM (2013)
48 final.
[10]             European Commission Communication: "A coherent
framework for building trust in the Digital Single Market for e-commerce and
online services", COM (2011) 942.
[11]             Directive 2011/83/EU of the European Parliament and of
the Council of 25 October 2011 on consumer rights, amending Council Directive
93/13/EEC and Directive 1999/44/EC of the European Parliament and of the
Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of the
European Parliament and of the Council (OJ L304, 22.11.2011, p.64).
[12]             http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0941:FIN:EN:PDF.
[13]             http://ec.europa.eu/internal_market/payments/docs/cim/gp_feedback_statement_en.pdf.
[14]             European Parliament resolution of 20 November 2012 on
‘Towards an integrated European market for card, internet and mobile payments’
(2012/2040(INI))
[15]             The
study is available at: http://ec.europa.eu/internal_market/payments/framework/transposition/index_en.htm.
[16]             The different policy options and their impacts are
discussed in detail in the impact assessment available at [link to be added]
[17]             OJ C , , p. .
[18]             OJ C, , p. .
[19]             Directive 2007/64/EC of the European Parliament and of
the Council of 13 November 2007 on payment services in the internal market (OJ
L 319, 5.12.2007, p. 1).
[20]             Regulation (EC) No 924/2009 of the European Parliament
and of the Council of 16 September 2009 on cross-border payments in the
Community and repealing Regulation (EC) No 2560/2001 (OJ L 266, 9.10.2009, p.
11).
[21]             Directive 2009/110/EC of the European Parliament and of
the Council of 16 September 2009 on the taking up, pursuit and prudential
supervision of the business of electronic money institutions amending
Directives 2005/60/EC and 2006/48/EC and repealing Directive 2000/46/EC (OJ L
267, 10.10.2009, p. 7).
[22]             Regulation (EC) No 260/2012 of the European Parliament
and of the Council of 14 March 2012 establishing technical and business
requirements for credit transfers and direct debits in euro and amending
Regulation (EC) No 924/2009 (OJ L 94, 30.03.2012, p. 22).
[23]             Directive 2011/83/EU of the European Parliament and of
the Council of 25 October 2011 on consumer rights, amending Council
Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of
the Council and repealing Council Directive 85/577/EEC and Directive 97/7/EC of
the European Parliament and of the Council (OJ L 304, 22.11.2011, p. 64).
[24]             COM(2012) 941 final.
[25]             Directive XXXX/XX/EU of the European Parliament and of
the Council of [date] concerning measures to ensure a high common level of
network and information security across the Union (OJ L x, p x)..
[26]             Regulation (EU) No [XX/XX/XX/] of the European
Parliament and of the Council [date] on interchange fees for card-based payment
transactions (OJ L x, p. x).
[27]             Directive 2013/36/EU of the European Parliament and of
the Council of 26 June 2013 on access to the activity .of credit institutions
and the prudential supervision of credit institutions and investment frims,
amending Directive 2002/87/EC and repealing Directives 2006/48/EC and
2006/49/EC (OJ L 176, 27.06.2013, p. 338).
[28]             Council Directive 78/660/EEC of 25 July 1978 on the
annual accounts of certain types of companies (OJ L 222, 14.08.1978, p. 11).
[29]             Council Directive 83/349/EEC of 13 June 1983 on
consolidated accounts (OJ L 193, 18.07.1983, p. 1).
[30]             Council Directive 86/635/EEC of 8 December 1986 on the
annual accounts and consolidated accounts of banks and other financial
institutions (OJ L 372, 31.12.1986, p. 1).
[31]             Directive 2008/48/EC of the European Parliament and of
the Council of 23 April 2008 on credit agreements for consumers and repealing
Council Directive 87/102/EEC (OJ L 133, 22.5.2008, p. 66).
[32]             Directive 98/26/EC of the European Parliament and of
the Council of 19 May 1998 on settlement finality in payment and securities
settlement systems (OJ L 166, 11.06.98, p. 45).
[33]             Commission Recommendation 2003/361/EC of 6 May 2003
concerning the definition of micro, small and medium-sized enterprises (OJ L
124, 20.5.2003, p. 36).
[34]             Directive 2005/29/EC of the European Parliament and the
Council of 11 May 2005 concerning unfair business-to-consumer commercial
practices in the Internal Market (OJ L 149, 11.06.2005, p. 22).
[35]             Directive 2000/31/EC of the European Parliament and the
Council of 8 June 2000 on certain legal aspects of information society
services, in particular electronic commerce, in the Internal Market (OJ L 178,
17.07.2000, p. 1).
[36]             Directive 2002/65/EC of the European Parliament and the
Council of 23 September 2002 concerning the distance marketing of consumer
financial services (OJ L 271, 9.10.2002, p. 16).
[37]             Directive 95/46/EC of the European Parliament and of
the Council of 24 October 1995 on the protection of individuals with regard to
the processing of personal data and on the free movement of such data (OJ L
281, 23.11.1995, p. 31).
[38]             Regulation (EC) No 45/2001 of the European Parliament
and of the Council of 18 December 2000 on the protection of individuals with
regard to the processing of personal data by the Community institutions and
bodies and on the free movement of such data (OJ L 8, 12.01.2001, p.1).
[39]             Regulation (EU) 1093/2010 of the European parliament
and of the Council of 24 November 2010 establishing a European Supervisory
Authority (European Banking Authority), amending Decision No 716/2009/EC and
repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p.12
[40]             Regulation (EC) No 593/2008 of the European parliament
and of the Council of 17 June 2008 on the law applicable to contractual
obligations (ROME I) (OJ L 177, 4.7.2008, p.6).
[41]             Directive 2006/112/EC of the European Parliament and the Council
of 28 November 2006 on the common system of value added
tax (OJ L 347, 11.12.2006, p. 1).
[42]             Joint Political Declaration of Member States and the
Commission of 28 September 2011 on explanatory documents (OJ C 369, 17.12.2011,
p. 14).
[43]             Regulation (EU) No 575/2013
of the European Parliament and of the Council of 26 June 2013 on prudential requirements
for credit institutions and investment firms and amending Regulation (EU) No
648/2012(OJ
L 176, 27.6.2013, p. 1).
[44]             Directive 2002/21/EC of the European Parliament of the
Council of 7 March 2002 on a common regulatory framework for electronic communications
networks and services (Framework Directive) (OJ L 108, 24.4.2002, p.33).
[45]             Directive 2005/60/EC of the European Parliament and of
the Council of 26 October 2005 on the prevention of the use of the financial
system for the purpose of money laundering and terrorist financing (OJ L 309,
25.11.2005, p.15)
[46]             Regulation (EC) No 1781/2006 of the European Parliament
and of the Council of 15 November 2006 on information on the payer accompanying
transfers of funds (OJ L 345, 8.12.2006, p.1).
[47]             Directive 2006/43/EC of the European Parliament and of
the Council of 17 May 2006 on statutory audits of annual accounts and
consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC
and repealing Council Directive 84/253/EEC (OJ L 157, 9.6.2006, p. 87).
[48]             Regulation (EC) 1606/2002 of the European Parliament
and of the Council of 19 July 2002 on the application of international
accounting standards (OJ L 243, 11.9.2002, p.1).
[49]             Directive 2008/48/RC of the European Parliament and of
the Council of 23 April 2008 on credit agreements for consumers and repealing
Directive 87/102/EEC (OJ L 133, 22.5.2008, p.66)
[50]             Directive 2013/36/EU of the European Parliament and of
the Council of 26 June 2013 on access to the activity of credit institutions
and the prudential supervision of credit institutions and investment firms,
amending Directive 2002/87/EC and repealing Directives 2006/48/EC and
2006/49/EC (OJ L 176, 27.6.2013, p. 338.
[51]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.
[52]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html
[53]             Diff.=Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations.
[54]             EFTA: Eurpopean Free Trade Association. 
[55]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.
[56]             Year N is the year in which implementation of the
proposal/initiative starts.