- Payment Services Directive
The Payment Services Directive (PSD) is a regulatory initiative from the
European Commission (Directorate General Internal Market)which will regulate payment services and payment service providers (as defined in the Directive) throughout the European Union(EU) and European Economic Area(EEA).The purpose is to increase pan-European competition and participation in the payments industry (also from non banks), as well as to provide for a level playing field by harmonising consumer protection and the rights/obligations for payment providers and users. [ [http://www.edgardunn.com/uploads/100030_english/100260.pdf Payments Services Directive: Complexities on the Road to Harmonisation, Edgar, Dunn & Company White Paper] ] The final adopted text of the Directive (2007/64/EC [ [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2007:319:0001:01:EN:HTML Text from the Official Journal of the European Union] ] ) was officially published on 5 December 2007, to be transposed into national legislation by all EU (and EEA) Member States by 1 November 2009 at the latest [ [http://ec.europa.eu/internal_market/payments/framework/transposition_en.htm Transposition status by country] ] . Although the PSD is a maximum harmonisation Directive, certain elements still allow for different options/choices [ [http://ec.europa.eu/internal_market/payments/framework/options_en.htm Member State options] ] by individual countries.
SEPA (Single European Payments Area)is a self-regulatory initiative by the banking sector of Europe (represented in the European Payments Council– EPC ) which defines the harmonisation of payment products, infrastructures and technical standards (Rulebooks for Credit Transfer/ Direct Debit, BIC, IBAN, ISO 20022XML message format, EMVchip cards/terminals), the PSD is driven by regulators and provides for the necessary legal framework within which all payment service providers will operate.
The PSD contains two main sections: the prudential regime for payment service providers and the business conduct rules.
The prudential regime defined in the PSD describes which type of organisations can provide payment services. Next to credit institutions (i.e. banks) and certain authorities (e.g. Central Banks, government bodies), the PSD mentions
Electronic Money Institutions (EMI), created by the E-Money Directive (EMD)in 2000, and also creates the new category of Payment Institutions. Organisations that are not credit institutions or EMI, can apply for an authorisation as PI (certain capital and risk management requirements apply) in any EU country of their choice (where they are established) and then passport their payment services into other Member States across the EU without additional PI authorisation requirements.
The business conduct rules specify the requirements around transparency of information to be provided by payment service providers to payment users, including any charges, exchange rates, transaction references and maximum execution time. It also stipulates the rights and obligations for both payment service providers and users, including how to authorise and execute transactions, liability in case of unauthorised use of payment instruments, refunds on payments, revoking payment orders, maximum execution time and value dating of payments.
Each country must designate a Competent Authority to provide prudential supervision [ [http://ec.europa.eu/internal_market/payments/docs/framework/transposition/authorisation_supervision_en.pdf List of currently designated Competent Authorities] ] of the PIs and to monitor compliance with the business conduct rules, as transposed into national legislation.
*March 2000: Through the
Lisbon AgendaEurope’s leaders decide to make Europe “the world’s most competitive and dynamic knowledge-driven economy” by 2010
*Dec 2001: Regulation
EC 2560/2001on cross-border payments in euro
*2002: Creation of the
European Payments Council (EPC)by the banking industry, driving the Single Euro Payments Areainitiative to harmonise the main non-cash payment instruments across the Euro area (by end 2010)
*2001-2004: Consultation period and preparation of a Directive to create a New Legal Framework for payment services in the EU
*Dec 2005: Proposal for Directive by DG Internal Market Commissioner McCreevy
*5 Dec 2007: Official publication of the adopted Payment Services Directive
*1 Nov 2009: deadline for implementation of PSD in national legislation
Key Implications [ [http://www.edgardunn.com/uploads/100023_english/100272.pdf PSD – Business opportunities and challenges for different players (presentation at Edgar, Dunn & Company Cards & Payments Council, Frankfurt, June 12th, 2008)] ]
*New types of payment providers, new payment innovations/solutions are likely to emerge in Europe, creating a new competitive dynamic
*Removal of barriers to access by payment service providers to any EU country (cross-border service offering becomes much easier)
*Increased regulatory compliance requirements might force small/medium sized players to reconsider their role in the value chain
* [http://www.europeanpaymentscouncil.eu/ European Payments Council]
* [http://ec.europa.eu/internal_market/payments/docs/framework/transposition/authorisation_supervision_en.pdf List of competent authorities]
* [http://www.edgardunn.com/uploads/100023_english/100272.pdf PSD business opportunities and challenges] - whitepaper from payments consultants
Edgar Dunn & Company
Wikimedia Foundation. 2010.
Look at other dictionaries:
Payment service provider — A payment service provider (PSP) offers merchants online services for accepting electronic payments by a variety of payment methods including credit card, bank based payments such as direct debit (GlobalCollect), bank transfer, and real time bank … Wikipedia
Directive on Privacy and Electronic Communications — European Union directive: Directive 2002/58/EC Directive concerning the processing of personal data and the protection of privacy in the electronic communications sector Made by European Parliament Council … Wikipedia
Directive on the legal protection of services based on, or consisting of, conditional access — EU directive title=Directive on the legal protection of services based on, or consisting of, conditional access number=98/84/EC madeby=European Parliament Council madeunder=Art. 57(2), 66 100a OJref=L320, 1998 11 28, pp. 54 ndash;57. made=1998 11 … Wikipedia
Conditional Access Directive — European Union directive: Directive 98/84/EC Directive on the legal protection of services based on, or consisting of, conditional access Made by European Parliament Council … Wikipedia
Fundamental Rights, Directive Principles and Fundamental Duties of India — The Fundamental Rights, Directive Principles of State Policy and Fundamental Duties are sections of the Constitution of India that prescribe the fundamental obligations of the Statefn|° to its citizens and the duties of the citizens to the State … Wikipedia
Advance health care directive — Living Will redirects here. For the 2011 film starring Ryan Dunn, see Living Will. Wills, trusts … Wikipedia
Internal Market (European Union) — European Union This article is part of the series: Politics and government of the European Union … Wikipedia
Single Euro Payments Area — The Single Euro Payments Area (SEPA) initiative for the European financial infrastructure involves the creation of a zone for the euro in which all electronic payments are considered domestic, and where a difference between national and intra… … Wikipedia
Zona Única de Pagos en Euros - SEPA — Saltar a navegación, búsqueda La Zona Única de Pagos en Euros y sus 31 estados miembros Single Euro Payments Area (SEPA) o, en castellano, Zona Única de Pagos en Euros, es una iniciativa relacionada con las infraestructuras financieras de Europa… … Wikipedia Español
Non-banking financial company — Non bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. These institutions are not allowed to take deposits from… … Wikipedia