PSD2 Directive – in brief
The new Payment Services Directive of the European Union comes into force on 13 January 2016.
The Directive lays the foundation for the regulation of payment services, key consumer rights and the principles of interaction between market participants. Below are some of the most relevant provisions of the document.
1. The Directive introduces new types of financial intermediary institutions into the regulatory field:
– Payment Initiation Service Providers (PISPs) provide interfaces for making payments and act as intermediaries between the consumer and the account servicing payment service provider (ASPSP).
– Account Information Service Providers (AISPs) at the request of the client request information about his accounts (for example, balance) from financial institutions and consolidate it in one place.
2. The Directive obliges financial institutions to provide information to financial intermediaries even without concluding a separate agreement. At the beginning of 2017, uniform standards for data exchange with financial intermediaries will be prepared, which are mandatory for application throughout the EU.
3. A pan-European register of organisations that have the status of payment institutions, as well as their agents, will be created in the European Union.
4. The Directive still allows the provision of payment services by “payment institutions” – a special category of organisations that are not banks. Prudential requirements for payment institutions remained largely unchanged. The authorised share capital of payment institutions is set at 125,000 euros. Money transfer systems – 20,000 euros. Payment initiation services – 50,000 euros. Payment market participants are also subject to differentiated requirements for the minimum amount of own funds (capital).
5. The Directive does not apply to payment instruments that have limited functionality. For example, they can only be used at certain points of sale or to purchase a limited range of goods and services.
The Directive will also not cover payments through communications operators in the amount of up to 50 euros (300 euros per month) for the purchase of digital content, charitable payments and the purchase of electronic tickets.
6. States have the right to exempt payment institutions with an annual turnover of up to EUR 3 million from prudential and a number of other requirements.
7. The Directive requires the use of strong customer authentication when obtaining online access to the account, when transmitting instructions for the transfer of funds in electronic form, as well as in the presence of fraud risks.
8. As before, payment orders must be executed by default on the next business day. In some cases, this period can be extended up to 4 working days.
9. The Directive maintains the client’s liability for unauthorised transactions in the amount of 150 euros. Liability can be reduced to zero if sufficient security of the payment instrument is not ensured (for example, two-factor authentication is not used). The client is liable for unauthorised transactions if they are made as a result of a violation of the rules for using the payment instrument.
10. The provisions of the Directive will be transposed into national law by 13 January 2018. During 2017-2018, at least 10 explanatory documents and technical standards necessary for the effective implementation of the Directive will be prepared.
The full text of the Directive is available at the following link:
http://ec.europa.eu/finance/payments/framework/index_en.htm
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32015L2366