Directive 2015/2366 - Payment services in the internal market - Main contents

Summary of Legislation
Legislative text

1. Summary of Legislation

Revised rules for payment services in the EU

SUMMARY OF:

Directive (EU) 2015/2366 on EU-wide payment services

WHAT IS THE AIM OF THE DIRECTIVE?

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Directive (EU) 2015/2366 (Payment Service Directive 2 — PSD 2) provides the legal foundation for the further development of a better integrated internal market for electronic payments within the EU.
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It puts in place comprehensive rules for payment services*, with the goal of making international payments (within the EU) as easy, efficient and secure as payments within a single country.
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It seeks to open up payment markets to new entrants leading to more competition, greater choice and better prices for consumers.
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It also provides the necessary legal platform for the Single Euro Payments Area (SEPA).
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It repealed Directive 2007/64/EC (PSD) from 13 January 2018.

KEY POINTS

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The directive seeks to improve the existing EU rules for electronic payments. It takes into account emerging and innovative payment services, such as internet and mobile payments.
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The directive sets out rules concerning:
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  strict security requirements for electronic payments and the protection of consumers’ financial data, guaranteeing safe authentication and reducing the risk of fraud;
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  the transparency of conditions and information requirements for payment services;
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  the rights and obligations of users and providers of payment services.

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The directive is complemented by Regulation (EU) 2015/751 which puts a cap on interchange fees charged between banks for card-based transactions. This is expected to drive down the costs for merchants in accepting consumer debit and credit cards.

Towards a better integrated EU payments market

The directive establishes a clear and comprehensive set of rules that will apply to existing and new providers of innovative payment services. These rules seek to ensure that these players can compete on equal terms, leading to greater efficiency, choice and transparency of payment services, while strengthening consumers' trust in a harmonised payments market.

Opening up the EU market to new services and providers

The directive also aims to open up the EU payment market to companies offering consumer- or business-oriented payment services based on access to information about the payment account, particularly:

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account information services which allow a payment service user to have an overview of their financial situation at any time, allowing users to better manage their personal finances;
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payment initiation services which are services to initiate an order at the request of the payment service user with respect to a payment account held at another payment service provider.

Consumer rights

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Consumer rights are enhanced, including:
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  reduced liability for non-authorised payments from €150 to €50;
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  unconditional refund right for direct debits in euro for a period of 8 weeks;
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  removal of surcharges for the use of a consumer credit or debit card.

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The European Commission was to produce a ‘user-friendly’ electronic leaflet by early 2018 listing consumers’ rights under the directive and related EU law.

Authorisation of payment institutions

The directive does not substantially change the conditions for granting authorisation as payment institutions, although payment institutions offering payment initiation services or account information services will be required to have professional indemnity insurance as a condition of authorisation or respectively registration. The directive also contains rules on the supervision of authorised payment institutions, as well as measures in case of non-compliance.

Role of European Banking Authority (EBA)

The role of the EBA is strengthened to:

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develop a publicly accessible central register of authorised payment institutions, which shall be kept up to date by the national authorities;
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assist in resolving disputes between national authorities;
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develop regulatory technical standards on strong customer authentication and secure communication channels with which all payment service providers must comply;
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develop regulatory technical standards for cooperation and information exchange between supervisory authorities.

The Commission has adopted the following implementing and delegated acts:

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Regulation (EU) 2017/2055 on regulatory technical standards for the cooperation and exchange of information between competent authorities relating to the exercise of the right of establishment and the freedom to provide services of payment institutions;
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Regulation (EU) 2018/389 on regulatory technical standards for strong customer authentication and common and secure open standards of communication;
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Regulation (EU) 2019/410 laying down implementing technical standards with regard to the details and structure of the information to be notified, in the field of payment services, by competent authorities to the EBA;
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Regulation (EU) 2019/411 on regulatory technical standards setting technical requirements on development, operation and maintenance of the electronic central register within the field of payment services and on access to the information contained therein.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 12 January 2016. EU countries had to incorporate it into national law by 13 January 2018.

BACKGROUND

For more information, see:

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Directive on Payment Services (PSD) (European Commission).

MAIN DOCUMENT

Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, pp. 35-127)

Successive amendments to Directive (EU) 2015/2366 have been incorporated into the original document. This consolidated version is of documentary value only.

Contents

1.

Summary of Legislation

2.

Legislative text