S.I. No. 6/2018 - European Union (Payment Services) Regulations 2018

• (2) Where the Bank takes a decision pursuant to Regulation 34, 37, 38 or 39 involving penalties or restrictions on the exercise of the freedom to provide services or the freedom of establishment, it shall communicate the reasons for its decision to the payment institution concerned.

• (3) Regulations 37, 38 and 39 shall be without prejudice to the obligation under the law of the State giving effect to Directive (EU) 2015/849 and Regulation (EU) 2015/847 of the competent authorities designated in the State for the purposes of Directive (EU) 2015/849 and Regulation (EU) 2015/847, in particular under the law of the State giving effect to Article 48(1) of Directive (EU) 2015/849 and Article 22(1) of Regulation (EU) 2015/847, to supervise or monitor the compliance with the requirements laid down in those enactments.

Conditions (small payment institutions)

41.(1) The Bank may exempt a person providing payment services referred to in paragraphs 1 to 6 of the Schedule from the application of all or part of the procedure and conditions set out in Regulations 7 to 40, with the exception of Regulations 25, 26, 33 and 35, where the following conditions are satisfied:

• (a) the monthly average of the preceding 12 months’ total value of payment transactions executed by the person concerned, including any agent for which it assumes full responsibility, does not exceed €3,000,000;

• (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;

• (c) (i)where the person is a legal person, it has its head office in the State, or

• (ii) where the person is a natural person, he or she has his or her place of residence in the State.

• (2) The requirement in paragraph (1) (a) shall be assessed on the projected total amount of payment transactions in the business plan of the person concerned, unless an adjustment to that plan is required by the Bank.

• (3) A person exempted under paragraph (1) shall be treated as a payment institution, save that Regulations 18(6), 37, 38 and 39 shall not apply to the person.

• (4) The Bank may direct that a person exempted under paragraph (1) may engage only in a specific activity referred to in Regulation 29(1) .

• (5) A person exempted under paragraph (1) shall notify the Bank of any change which results in the person no longer satisfying a condition specified in that paragraph.

• (6) Where a person exempted under paragraph (1) —

• (a) ceases to satisfy a condition specified in that paragraph or,

• (b) where a direction has been issued under paragraph (4), engages in an activity other than that to which the direction relates,

the person concerned shall apply for an authorisation under Regulation 18 within 30 days from the date the condition concerned is no longer satisfied or the activity concerned is commenced, as the case may be.

• (7) Subject to paragraph (10), where a person referred to in paragraph (6) applies for authorisation in accordance with that paragraph within the period referred to in that paragraph, it may continue providing payment services until the Bank notifies the person of the Bank’s decision on the application for authorisation.

• (8) Subject to paragraph (11), where a person referred to in paragraph (6) does not apply for authorisation in accordance with that paragraph within the period referred to in that paragraph, it shall cease to provide payment services at the end of that period.

• (9) Paragraphs (1) to (8) shall not affect the operation of the law of the State giving effect to Directive (EU) 2015/849 or any other anti-money-laundering law of the State.

• (10) Paragraph (7) shall not apply where the application for authorisation in accordance with paragraph (6) is consequent upon the condition referred to in paragraph (1) (b) no longer being satisfied.

• (11) Where the application for authorisation in accordance with paragraph (6) is consequent upon the condition referred to in paragraph (1) (b) no longer being satisfied, the person referred to in paragraph (6) shall cease to provide payment services from the date on which that condition is no longer satisfied.

Account information service providers

42.(1) A person providing only the payment service referred to in paragraph 8 of the Schedule shall be—

• (a) exempt from the application of the procedure and conditions set out in Regulations 7 to 32, with the exception of subparagraphs (a), (b), (e) to (h), (j), (l), (n), (p) and (q) of Regulation 7(2), Regulation 7(6), Regulation 25, Regulation 26, and

• (b) subject to Regulations 33 to 40, with the exception of Regulation 34(2).

• (2) A person referred to in paragraph (1) of this Regulation shall be treated as a payment institution, save that Parts 3 and 4 shall not apply to them, with the exception of Regulations 65, 69 and 76, where applicable, and of Regulations 91, 93 and 118 to 120.

Chapter 3 Common Provisions

Access to payment systems

• (a) be objective, non-discriminatory and proportionate, and

• (b) not inhibit access more than is necessary—

• (i) to safeguard against specific risks, such as settlement risk, operational risk and business risk, and

• (ii) to protect the financial and operational stability of the payment system.

• (2) A payment system shall not impose on a payment service provider, a payment service user or other payment systems any of the following requirements:

• (a) restrictive rules on effective participation in other payment systems;

• (b) rules which discriminate between authorised payment service providers or between registered payment service providers in relation to the rights, obligations and entitlements of participants;

• (c) restrictions on the basis of institutional status.

• (3) Paragraphs (1) and (2) shall not apply to:

• (a) a payment system designated under the European Communities (Settlement Finality) Regulations 2010 ( S.I. No. 624 of 2010 ), or

• (b) a payment system composed exclusively of payment service providers belonging to a group.

• (4) Where a participant (in this paragraph referred to as the “first-mentioned participant”) in a payment system designated under the European Communities (Settlement Finality) Regulations 2010 allows an authorised or registered payment service provider that is not a participant in the system to pass transfer orders through the system, the first-mentioned participant shall, when requested, give the same opportunity in an objective, proportionate and non-discriminatory manner to other authorised or registered payment service providers.

• (5) Where a participant refuses a request referred to in paragraph (4), it shall provide the requesting payment service provider with the reasons for any rejection.

• (6) Where the Bank considers that a rule of a payment system contravenes paragraph (1) or (2), the Bank may direct the operator of the payment system by notice in writing to make a specified modification to the rules of the payment system within a specified period.

• (7) Where the operator of a payment system to which a direction is given under paragraph (6) does not comply with the direction within the period specified in the notice, the Bank may apply to the court for an order directing the operator of the payment system to comply with the direction.

• (8) A payment service provider may apply to the court for a declaration that a rule of a payment system contravenes paragraph (1) or (2).

Access to accounts maintained with a credit institution

• (2) The access referred to in paragraph (1) shall be sufficiently extensive as to allow payment institutions to provide payment services in an unhindered and efficient manner.

• (3) Where a credit institution rejects a request for access to its payment accounts services from a payment institution, the credit institution shall provide the Bank without delay with duly motivated reasons for the rejection.

Notification of use of limited network exclusion

• (a) provides services of a type referred to in either or both of subparagraphs (i) and (ii) of paragraph (k) of Regulation 4, and

• (b) the total value of payment transactions executed in providing those services over the preceding 12 months exceeds €1,000,000,

the service provider shall send a notification to the Bank.

• (2) A notification under paragraph (1) shall—

• (a) contain a description of the services provided by the service provider,

• (b) specify which of the conditions referred to in subparagraphs (i) and (ii) of paragraph (k) of Regulation 4 is considered by the service provider to be satisfied,

• (c) be sent within such period of time, as the Bank may direct, after the end of the period of 12 months referred to in paragraph (1), and

• (d) be in such form or verified in such manner as the Bank may direct.

• (3) The period of 12 months referred to in paragraph (1) does not include any period in respect of which a notification has already been made under paragraph (1) .

• (4) Upon receipt of a notification under paragraph (1), the Bank shall decide in a duly motivated manner, on the basis of the contents of the notification and the conditions referred to in paragraph (k) of Regulation 4, whether or not those conditions are satisfied, and inform the service provider concerned accordingly.

• (5) The Bank shall inform the European Banking Authority of the services notified under paragraph (1), specifying the exclusion applicable.

• (6) The Bank shall enter a description of any services notified under paragraph (1) and the name of the service provider concerned in the Register.

Notification of use of electronic communications exclusion

• (2) A notification under paragraph (1) shall—

• (a) contain a description of the services being provided by the service provider,

• (b) specify to which of the transaction types referred to in subparagraphs (i) and (ii) of paragraph (l) of Regulation 4 the services being provided relate.

• (3) Where a service provider has, in a financial year of the service provider, provided services in respect of which a notification has been sent under paragraph (1), the service provider shall, within such period after the end of that financial year as the Bank may direct, provide an audit opinion in respect of that financial year to the effect that the transactions in respect of which the services were provided comply with the limits set out in paragraph (l) of Regulation 4.

• (4) Information provided to the Bank under this Regulation shall be in such form or verified in such manner as the Bank may direct.

• (5) The Bank shall inform the European Banking Authority of the services notified under paragraph (1), specifying the exclusion applicable.

• (6) The Bank shall enter a description of any services notified under paragraph (1) and the name of the service provider concerned in the Register.

Chapter 4 Control of Shareholding

Control of shareholding — Interpretation

“prescribed percentage” means 20%, 30% or 50%;

“proposed acquirer” means a person who proposes to acquire or increase a qualifying holding in a payment institution, and includes a group of persons acting in concert to acquire or increase such a holding;

“proposed acquisition” means—

• (a) the proposed acquisition of a qualifying holding in a payment institution, or

• (b) a proposed increase in a qualifying holding in such an institution that results in the size of the holding reaching or exceeding a prescribed percentage;

“qualifying holding”, in relation to a payment institution, means a direct or indirect holding—

• (a) that represents 10% or more of the capital of, or the voting rights in, the payment institution, or

• (b) that makes it possible to exercise a significant influence over the management of the payment institution.

Restrictions on acquiring and disposing of qualifying holdings in payment institutions

• (2) A proposed acquirer who has a qualifying holding in a payment institution shall not, directly or indirectly, increase the size of the holding without having previously notified the Bank in writing of the intended size of the holding if, as a result of the increase—

• (a) the percentage of the capital of, or the voting rights in, the payment institution that the proposed acquirer holds would reach or exceed a prescribed percentage, or

• (b) in the case of a proposed acquirer that is a company or other body corporate, the payment institution would become the proposed acquirer’s subsidiary.

• (3) A person shall not, directly or indirectly, dispose of a qualifying holding in a payment institution without having previously notified the Bank in writing of the intended size of the holding.

• (4) A person shall not, directly or indirectly, dispose of part of a qualifying holding in a payment institution without having previously notified the Bank in writing of the intended size of the holding if, as a result of the disposal—

• (a) the percentage of the capital of, or the voting rights in, the payment institution that the person holds would fall to or below a prescribed percentage, or

• (b) in the case of a person that is a company or other body corporate, the payment institution would cease to be the person’s subsidiary.

• (5) A notification under this Regulation shall be made by completing and submitting to the Bank—

• (a) the form of notification specified by the Bank for the purpose of this provision and made available on the official website of the Bank, and

• (b) such documentation in relation to the proposed acquisition or disposal, as the case may be, as is specified in that form as being required to be submitted to the Bank with the form.

Application to court where no notification given

• (a) requiring the person to provide the Bank with the information required under Regulation 50, and

• (b) requiring the Bank to carry out an assessment in accordance with Regulations 51, 52 and 53.

• (2) An application under paragraph (1) shall be on notice to the Bank and the Bank shall be entitled to appear, be heard and adduce evidence at the hearing of the application.

• (3) Notice of an application under paragraph (1) shall be served on the Bank at least 14 days before the date of hearing of the application.

• (4) An affidavit giving the names and addresses of, and the places and dates of service on, all persons who have been served with the notice of application, grounding affidavit and exhibits (if any) shall be filed by the applicant at least 4 days before the application is heard.

• (5) Where any person who ought under this Regulation to have been served has not been so served, the affidavit shall state that fact and the reason for it.

• (6) Where the Bank carries out an assessment on foot of an order under paragraph (1) and it is satisfied that no grounds exist to oppose the application in accordance with Regulation 57 it may—

• (a) lift a suspension of voting rights under Regulation 61, and

• (b) retrospectively validate the exercise of voting rights during such a suspension.

Payment institution to provide information in relation to certain acquisitions and disposals

• (2) If a payment institution becomes aware of a disposal of, or a reduction in the size of, a holding in it that results in the holding ceasing to be a qualifying holding or falling to or below a prescribed percentage, the institution shall inform the Bank in writing of the disposal or reduction without delay.

Period for assessment of proposed acquisition

• (2) For the purposes of paragraph (1), a notification is completed if it gives all the information (whether in the notification itself or as an attachment) required by Regulation 48 to be provided for the assessment of the proposed acquisition concerned.

• (3) Within 60 working days after the date of the written acknowledgement referred to in paragraph (1), the Bank shall carry out the assessment of the proposed acquisition concerned in accordance with Regulation 52.

• (4) In its acknowledgement of receipt of a notification referred to in paragraph (1), the Bank shall inform the proposed acquirer concerned of the date on which the assessment period will end.

• (5) During the assessment period in relation to a proposed acquisition, but no later than the 50th working day of that period, the Bank may request any further information necessary to complete the assessment of the acquisition.

• (6) If the Bank makes a request under paragraph (5), it shall acknowledge the receipt of any information received in response to the request.

• (7) A request made under paragraph (5) shall be made in writing and shall specify or describe the additional information needed.

• (8) Subject to paragraph (10), if the Bank makes a request under paragraph (5) the assessment period is to be taken to be interrupted for the shorter of—

• (a) the period between the date of the request and the date of the receipt of a response from the proposed acquirer concerned, and

• (b) 20 working days.

• (9) The Bank may request still further information for completion or clarification of information already supplied but such a request does not interrupt the assessment period.

• (10) The Bank may, by notice in writing to a proposed acquirer, extend the interruption referred to in paragraph (8) in relation to a proposed acquisition to 30 working days if the proposed acquirer concerned—

• (a) is situated or regulated in a country that is not a Member State, or

• (b) is not subject to supervision under a law of a Member State that transposes Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009¹² , Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009¹³ , or Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014¹⁴ .

Assessment of proposed acquisitions

• (2) In assessing a proposed acquisition, the Bank shall—

• (a) have regard to the likely influence of the proposed acquirer concerned on the payment institution concerned, and

• (b) appraise the suitability of the proposed acquirer and the financial soundness of the proposed acquisition concerned against all of the following criteria:

• (i) the reputation of the proposed acquirer;

• (ii) the reputation and experience of the individuals who will direct the business of the payment institution as a result of the proposed acquisition;

• (iii) the financial soundness of the proposed acquirer, in particular in relation to the type of business pursued and envisaged in the payment institution;

• (iv) whether the payment institution will be able to comply and continue to comply with the prudential requirements of existing legislation;

• (v) whether the group of which it will become a part has a structure that makes it possible to exercise effective supervision, effectively exchange information among the competent authorities and determine the allocation of responsibilities among the competent authorities;

• (vi) whether there are reasonable grounds to suspect that, in connection with the proposed acquisition, money laundering or terrorist financing (within the meaning of Article 1 of Directive (EU) 2015/849) is being or has been committed or attempted, or that the proposed acquisition could increase the risk of money laundering or terrorist financing.

• (3) The Bank shall not examine a proposed acquisition in terms of the economic needs of the market.

• (4) Where 2 or more proposals to acquire or increase qualifying holdings in the same payment institution have been notified to the Bank, the Bank shall treat the proposed acquirers concerned in a non-discriminatory manner.

Bank to cooperate with competent authorities of other Member States in certain cases

• (a) an insurance undertaking, reinsurance undertaking, electronic money institution, credit institution, investment firm or UCITS management company, or the market operator of a regulated market, authorised by a competent authority of another Member State,

• (b) the parent undertaking of such an undertaking, institution, firm, company or market operator, or

• (c) a person that controls such an undertaking, institution, firm, company or market operator.

• (2) In a case to which paragraph (1) applies, the Bank shall, without undue delay, provide any other competent authority concerned with any information that is essential or relevant for the assessment of a proposed acquisition.

• (3) The Bank shall communicate to each other competent authority referred to in paragraph (2) all relevant information upon request and all essential information on its own initiative.

• (4) A decision by the Bank, in the case of a proposed acquisition in a payment institution authorised by the Bank, shall indicate any views or reservations expressed by the competent authority responsible for the proposed acquirer concerned.

Notice of Bank’s decision

• (a) to oppose it, or

• (b) not to oppose it,

the Bank shall, within 2 business days, but before the end of the assessment period, so inform the proposed acquirer concerned in writing and give reasons for that decision.

• (2) Subject to any other law, the Bank shall publish an appropriate statement of the reasons for its decision if the proposed acquirer concerned so requests.

• (3) The Bank may in its discretion publish a statement referred to in paragraph (2) where a proposed acquirer has not so requested.

• (4) If the Bank does not give notice in writing within the assessment period in relation to the proposed acquisition that it opposes or does not oppose the acquisition, the acquisition is deemed, for the purposes of any other law that requires the acquisition to be approved by the Bank, to have been so approved at the end of the assessment period.

Bank may fix period for completion of acquisition

Bank may impose conditions

Bank may oppose certain acquisitions

• (a) there are reasonable grounds for doing so on the basis of the criteria in paragraph (1) or (2) of Regulation 52, or

• (b) the information provided by the proposed acquirer in its notification under Regulation 48 or in accordance with an order made under Regulation 49(1) (a), as the case may be, is incomplete, or the proposed acquirer has not provided information in response to a request under paragraph (5) or (9) of Regulation 51.

Circumstances in which proposed acquisition may be completed

• (a) the proposed acquirer has notified the Bank of the acquisition in accordance with Regulation 48 or in accordance with an order made under Regulation 49(1) (a), as the case may be,

• (b) the Bank has acknowledged that notification in accordance with Regulation 51(1), and

• (c) either—

• (i) the assessment period in relation to the acquisition has ended and the Bank has not notified the proposed acquirer that it opposes the acquisition, or

• (ii) the Bank has notified the proposed acquirer that it does not oppose the acquisition.

• (2) If a proposed acquirer purports to complete a proposed acquisition in contravention of paragraph (1) —

• (a) the purported acquisition is of no effect to pass title to any share or any other interest, and

• (b) any exercise of powers based on the purported acquisition of the holding concerned is void.

Effect of section 450 of Companies Act 2014

Payment institutions to provide information about shareholdings, etc.

Power of court to make certain orders

• (2) On making an application under paragraph (1), the Bank shall serve a copy of the application on the person to whom the application relates.

• (3) On being served in accordance with paragraph (2), the person concerned becomes the respondent to the application.

• (4) On the hearing of an application under paragraph (1), the court may, on being satisfied that the Bank’s belief is substantiated, make all or any of the following orders:

• (a) an order directing the respondent to dispose of the holding or a specified part of it;

• (b) an order suspending the exercise of the voting rights attached to the relevant shares;

• (c) an order invalidating votes already exercised by holders of those shares.

PART 3 Transparency of Conditions and Information Requirements for Payment Services

Chapter 1 General Rules

Scope

• (2) The parties to a payment transaction or a framework contract may agree that this Part does not, or particular provisions of this Part do not, apply to the transaction or contract where the payment service user is not a consumer.

• (3) This Part applies to a micro enterprise as it applies to a consumer.

• (4) For the purposes of this Part, an undertaking shall be taken to be a micro enterprise—

• (a) for the purposes of a payment transaction, where it satisfies the definition of a micro enterprise in the Commission Recommendation at the time of initiation of the transaction, and

• (b) for the purposes of a framework contract, where it satisfies the definition of a micro enterprise in the Commission Recommendation at the time of entering into the framework contract.

• (5) Nothing in these Regulations shall prevent a payment service provider proposing a new framework contract or amendments to an existing framework contract with a payment service user where that payment service user, having satisfied the definition of a micro enterprise in the Commission Recommendation at the time of entering into the existing framework contract, ceases to satisfy that definition prior to the expiry of that framework contract.

Operation of other legislative provisions

• (2) Where both this Part and the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 ( S.I. No. 853 of 2004 ) apply in relation to a payment transaction or framework contract, the requirements of Regulation 6 of those Regulations (to the extent that that Regulation requires the supply of the information specified in points (a) to (i), (p), (q) and (t) to (w) of Schedule 1 to those Regulations) are superseded by the requirements of—

• (a) in a case to which Chapter 2 of this Part applies, Regulations 68 and 69, or

• (b) in a case to which Chapter 3 of this Part applies, Regulations 75 and 76.

Charges for information

• (2) Where provided at a payment service user’s request, a payment service provider and a payment service user may agree on charges for—

• (a) the provision of information additional to that to be provided under this Part,

• (b) the provision of information on a more frequent basis than is provided under this Part, or

• (c) the transmission of information by a means of communication other than that specified in the framework contract between the payment service user and the payment service provider.

• (3) Where a payment service provider imposes charges in accordance with paragraph (2), those charges shall be reasonable and in line with the payment service provider’s actual costs.

Burden of proof on information requirements

65.Where in proceedings in relation to these Regulations a dispute arises as to whether or not the information requirements set out in this Part have been complied with, the burden of proof rests with the payment service provider.

Derogation from information requirements for low-value payment instruments and electronic money

66.(1) In this Regulation, “low-value payment instrument” means a payment instrument that, in accordance with the relevant framework contract—

• (a) (i) is not prepaid,

• (ii) relates to payment transactions not wholly within the State, and

(iii)(I) concerns only payment transactions none of which exceeds €30,

• (II) has a spending limit of €150, or

• (III) does not store more than €150 at any time,

• (b) (i) is not prepaid,

• (ii) relates to payment transactions wholly within the State, and

• (iii) (I) concerns only payment transactions none of which exceeds €60,

(II)has a spending limit of €300, or

(III)does not store more than €300 at any time, or

• (c) (i) is prepaid, and

• (ii) (I) concerns only payment transactions none of which exceeds €500,

• (II) has a spending limit of €500, or

• (III) does not store more than €500 at any time.

• (2) Where a payment instrument is a low-value payment instrument—

• (a) notwithstanding Regulations 75, 76 and 80, the payment service provider need 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 make an informed decision and an indication of where any other information specified in Regulation 76 are made available in an easily accessible manner,

• (b) notwithstanding Regulation 78, the payment service provider and payer may agree that the payment service provider is not required to propose changes to the conditions of the framework contract in the manner provided for in Regulation 75(1) and (2), and

• (c) notwithstanding Regulations 81 and 82, the payment service provider and payer may agree that after the execution of a payment transaction—

• (i) the payment service provider need provide or make available only a reference enabling the payment service user to identify the payment transaction, the amount of the payment transaction and any charges (or, in the case of several payment transactions of the same kind to the same payee, information on the total amount and charges for those transactions), and

• (ii) the payment service provider is not required to provide or make available information referred to in subparagraph (i) if the payment instrument is used anonymously or if the payment service provider is not otherwise technically able to provide it, but the payment service provider shall provide the payer with a way of verifying the amount of funds stored.

Chapter 2 Single Payment Transactions

Scope

• (2) Where a payment order for a single payment transaction is transmitted by means of a payment instrument covered by a framework contract, the payment service provider is not obliged to provide or make available information which has already been given or which will be given to the payment service user by another payment service provider under that framework contract.

Prior general information

• (2) Where the payment service user concerned so requests, the payment service provider shall provide the information referred to in paragraph (1) on paper or on another durable medium.

• (3) The information referred to in paragraph (1) shall be given to the payment service user concerned in—

• (a) easily understandable words,

• (b) a clear and comprehensible form, and

• (c) an official language of the Member State where the payment service is offered or in any other language agreed between the parties.

• (4) Where a single payment service contract has been concluded at the request of a payment service user using a means of distance communication which does not enable the payment service provider concerned to comply with paragraphs (1) to (3), the payment service provider shall fulfil its obligations under those paragraphs immediately after the execution of the payment transaction.

• (5) Where a payment service provider supplies the payment service user concerned with a copy of the draft single payment service contract or the draft payment order which includes the information specified in Regulation 69, the payment service provider shall be deemed to have complied with paragraphs (1) to (3).

Information

• (a) a specification of the information or unique identifier 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 a payment service to be provided;

• (c) all charges payable by the payment service user to the payment service provider and, where applicable, a breakdown of those charges;

• (d) where applicable, the actual or reference exchange rate to be applied to a payment transaction.

• (2) A payment initiation service provider shall, in addition to the information referred to in paragraph (1), prior to initiation, provide the payer with, or make available to the payer, the following information in a clear and comprehensive manner:

• (a) the name of the payment initiation service provider;

• (b) the geographical address of its head office;

• (c) where applicable, the geographical address of its agent or branch established in the Member State where the payment service is offered;

• (d) any other contact details, including electronic mail address, relevant for communication with the payment initiation service provider;

• (e) the contact details of the Bank.

• (3) A payment service provider shall, where applicable, make available to a payment service user in an easily accessible manner any other relevant information specified in Regulation 76.

Information for the payer and payee after the initiation of a payment order

• (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, where appropriate, the payee to identify the payer, and any information transferred with the payment transaction;

• (c) the amount of the payment transaction;

• (d) where applicable, the amount of any charges payable to the payment initiation service provider for the transaction and, where applicable, a breakdown of the amounts of such charges.

Information for payer’s account servicing payment service provider

Information for the payer after receipt of the payment order

• (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 Regulation 69(1) (d), and the amount of the payment transaction after that currency conversion;

• (e) the date of receipt of the payment order.

Information for the payee after execution

• (a) a 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 amounts 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

Scope

Prior general information

• (2) The information referred to in paragraph (1) shall be given in—

• (a) easily understandable words,

• (b) a clear and comprehensible form, and

• (c) an official language of the Member State where the payment service is offered or in any other language agreed between the parties.

• (3) Where a framework contract has been concluded at the request of a payment service user using a means of distance communication which does not enable the payment service provider concerned to comply with paragraphs (1) and (2), the payment service provider shall fulfil its obligations under those paragraphs immediately after conclusion of the framework contract.

• (4) Where a payment service provider supplies the payment service user concerned with a copy of a draft framework contract which includes the information specified in Regulation 76, the payment service provider shall be deemed to have complied with paragraphs (1) and (2).

Information

• (a) on the payment service provider:

• (i) the name of the payment service provider;

• (ii) the geographical address of its head office;

• (iii) where applicable, the geographical address of its agent or branch established in the Member State where the payment service is offered;

• (iv) any other address, including electronic mail address, relevant for communication with the payment service provider;

• (v) the particulars of the Bank and of the Register 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;

• (b) on the use of the payment service:

• (i) a description of the main characteristics of the payment service to be provided;

• (ii) 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;

• (iii) the form of and procedure for giving consent to initiate a payment order or execute a payment transaction and withdrawal of such consent in accordance with Regulations 88 and 104;

• (iv) a reference to the time of receipt of a payment order in accordance with Regulation 102 and the cut-off time, if any, established by the payment service provider;

• (v) the maximum execution time for the payment services to be provided;

• (vi) whether there is a possibility to agree on spending limits for the use of the payment instrument in accordance with Regulation 92(1) ;

• (vii) in the case of co-badged, card-based payment instruments, the payment service user’s rights under Article 8 of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015¹⁵ ;

• (c) on charges, interest and exchange rates:

• (i) all charges payable by the payment service user to the payment service provider including those connected to the manner in and frequency with which information under these Regulations is provided or made available and, where applicable, the breakdown of the amounts of such charges;

• (ii) 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;

• (iii) if agreed, the immediate application of changes in reference interest or exchange rate and information requirements relating to the changes in accordance with Regulation 78(5);

• (d) on communication:

• (i) 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 these Regulations;

• (ii) the manner in, and frequency with which, information under these Regulations is to be provided or made available;

• (iii) the language or languages in which the framework contract will be concluded and communication during this contractual relationship undertaken;

• (iv) the payment service user’s right to receive the contractual terms of the framework contract and information in accordance with Regulation 77;

• (e) on safeguards and corrective measures:

• (i) where applicable, a description of the steps that the payment service user is to take in order to keep a payment instrument safe and how to notify the payment service provider for the purposes of Regulation 93(1) (b) ;

• (ii) the secure procedure for notification of the payment service user by the payment service provider in the event of suspected or actual fraud or security threats;

• (iii) if agreed, the conditions under which the payment service provider reserves the right to block a payment instrument in accordance with Regulation 92;

• (iv) the liability of the payer in accordance with Regulation 98, including information on the relevant amount;

• (v) 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 Regulation 95 as well as the payment service provider’s liability for unauthorised payment transactions in accordance with Regulation 97;

• (vi) the liability of the payment service provider for the initiation or execution of payment transactions in accordance with Regulation 112;

• (vii) the conditions for refund in accordance with Regulation 100 and 101;

• (f) on changes to, and termination of, the framework contract:

• (i) if agreed, that the payment service user will be deemed to have accepted changes in the conditions in accordance with Regulation 78, unless the payment service user notifies the payment service provider before the date of their proposed date of entry into force that the changes are not accepted;

• (ii) the duration of the framework contract;

• (iii) the right of the payment service user to terminate the framework contract and any agreements relating to termination in accordance with Regulation 78(4) and 79;

• (g) on redress:

• (i) any contractual clause on the law applicable to the framework contract or the competent courts;

• (ii) the alternative dispute resolution procedures available to the payment service user in accordance with Regulations 124 and 125.

Accessibility of information and conditions of the framework contract

Changes in conditions of the framework contract

• (2) A payment service user can either accept or reject changes proposed in accordance with paragraph (1) before the date of their proposed entry into force.

• (3) Where a framework contract provides for such deemed acceptance, the payment service provider concerned shall inform the payment service user concerned that the payment service user is deemed to have accepted changes proposed in accordance with paragraph (1) if the payment service user does not notify the payment service provider before the proposed date of their entry into force that those changes are not accepted.

• (4) Where paragraph (3) applies, the payment service provider shall also inform the payment service user that, in the event that the payment service user rejects the changes concerned, the payment service user has the right to terminate the framework contract free of charge and with effect at any time before the date when the changes would have applied had the payment service user not rejected the changes.

• (5) A payment service provider may apply a change in an interest or exchange rate immediately and without notice where—

• (a) the framework contract concerned provides for the application of changes in an interest or exchange rate immediately and without notice, and

• (b) the change in the interest or exchange rate is based on an agreed reference interest or exchange rate.

• (6) Subject to paragraph (7), where a change in an interest rate is applied in accordance with paragraph (5), the payment service user concerned shall be informed of the change in the interest rate at the earliest opportunity in the same manner as information is to be provided in accordance with Regulation 75(1) and (2), unless the parties to the framework contract concerned have agreed on a specific frequency or manner in which the information is to be provided or made available.

• (7) A change in an interest or exchange rate which is more favourable to the payment service user concerned may be applied by a payment service provider without giving notice to the payment service user.

• (8) A change in an interest or exchange rate used in a payment transaction shall be implemented and calculated in a neutral manner that does not discriminate against payment service users.

Termination

• (2) The period of notice referred to in paragraph (1) shall not exceed 1 month.

• (3) Termination of a framework contract shall be free of charge for the payment service user except where the contract has been in force for less than 6 months.

• (4) Charges, if any, for termination of a framework contract shall be appropriate and in line with costs.

• (5) If agreed in a framework contract, a payment service provider may terminate a framework contract concluded for an indefinite period by giving not less than 2 months’ notice in the same manner as information is to be provided in accordance with Regulation 75(1) and (2).

• (6) Where a framework contract is terminated, charges for payment services levied on a regular basis shall be—

• (a) payable by the payment service user only proportionally up to the termination of the contract, and

• (b) where such charges are paid in advance, reimbursed proportionally.

• (7) Nothing in this Regulation affects the operation of any other law governing the rights of the parties to a framework contract to declare the contract unenforceable or void.

Information before execution of individual payment transactions

• (a) the maximum execution time;

• (b) the charges payable by the payer;

• (c) where applicable, a breakdown of the amounts of any charges.

Information for the payer on individual payment transactions

• (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 of the amounts of such charges, 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 shall include a condition that the payer may require the information referred to in paragraph (1) to be provided or made available periodically, at least once a month, free of charge and in an agreed manner which allows the payer to store and reproduce information unchanged.

Information for the payee on individual payment transactions

• (a) a reference enabling the payee to identify the payment transaction and 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 of the amounts of such charges, 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, free of charge and in an agreed manner which allows the payee to store and reproduce information unchanged.

Chapter 4 Common Provisions

Currency and currency conversion

• (2) Where—

• (a) a currency conversion service is offered prior to the initiation of a payment transaction, and

• (b) that currency conversion service is offered at an automated teller machine, at the point of sale or by a payee,

the party offering the currency conversion service to a payer shall disclose to the payer all charges as well as the exchange rate to be used for converting the payment transaction.

• (3) Where the conditions specified in paragraph (2) apply, a payer accepting an offer to use the currency conversion service concerned shall be deemed to do so on the basis of the disclosed charges and exchange rate.

Information on additional charges or reductions

• (2) Where, for the use of a given payment instrument, a payment service provider or another party involved in the transaction requests a charge, that payment service provider or other party shall inform the payment service user concerned prior to the initiation of the payment transaction.

• (3) A payer shall only be obliged to pay the charges referred to in paragraphs (1) and (2) if the full amount of the charges was made known prior to the initiation of the payment transaction concerned.

PART 4 Rights and Obligations in Relation to the Provision and use of Payment Services

Chapter 1 Common provisions

Scope

85.(1) Where a payment service user is not a consumer, the payment service user and the payment service provider concerned—

• (a) may agree that Regulation 86(1) and (2), Regulation 88(5) and (6), and Regulations 96, 98, 100, 101, 104 and 112 do not apply in whole or in part, and

• (b) may agree on time limits that are different from those laid down in Regulation 95.

• (2) This Part applies to a micro enterprise as it applies to a consumer.

• (3) For the purposes of this Part, an undertaking shall be taken to be a micro enterprise—

• (a) for the purposes of a payment transaction, where it satisfies the definition of a micro enterprise in the Commission Recommendation at the time of initiation of the transaction, and

• (b) for the purposes of a framework contract, where it satisfies the definition of a micro enterprise in the Commission Recommendation at the time of entering into the framework contract.

• (4) Nothing in these Regulations shall prevent a payment service provider proposing a new framework contract or amendments to an existing framework contract with a payment service user where that payment service user, having satisfied the definition of a micro enterprise in the Commission Recommendation at the time of entering into the existing framework contract, ceases to satisfy that definition prior to the expiry of that framework contract.

Charges applicable

• (2) Where charges are imposed in accordance with the provisions referred to in paragraph (1), they 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.

• (3) Where—

• (a) a payment transaction is provided within the Union, and

• (b) both the payer’s and the payee’s payment service providers are, or the sole payment service provider in the payment transaction is, located in the Union,

the payee shall pay the charges levied by his or her payment service provider and the payer shall pay the charges levied by his or her payment service provider.

• (4) A payment service provider shall not prevent a payee from—

• (a) requesting from a payer a charge,

• (b) offering a payer a reduction, or

• (c) otherwise encouraging a payer to use a particular payment instrument.

• (5) Where a payee applies a charge in accordance with paragraph (4), the charge applied shall not exceed the direct costs borne by the payee for the use of the payment instrument concerned.

• (6) A payee shall not request charges for—

• (a) the use of a payment instrument for which interchange fees are regulated under Chapter II of Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015¹⁶ , or

• (b) those payment services to which Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012¹⁷ applies.

Derogation for low-value payment instruments and electronic money

• (a) (i)is not prepaid,

• (ii) relates to payment transactions not wholly within the State, and

• (iii) (I) concerns only payment transactions none of which exceeds €30,

• (II) has a spending limit of €150, or

• (III) does not store more than €150 at any time,

• (b) (i) is not prepaid,

• (ii) relates to payment transactions wholly within the State, and

• (iii) (I) concerns only payment transactions none of which exceeds €60,

• (II) has a spending limit of €300, or

• (III) does not store more than €300 at any time, or

• (c) (i) is prepaid, and

• (ii) (I) concerns only payment transactions none of which exceeds €500,

• (II) has a spending limit of €500, or

• (III) does not store more than €500 at any time.

• (2) Where a payment instrument is a low-value payment instrument, the payment service provider concerned may agree with the payment service user concerned—

• (a) where the payment instrument cannot be blocked or its further use prevented, that Regulation 93(1) (b), Regulation 94(1) (c), (d) and (e), and Regulation 98(6) and (7) do not apply,

• (b) where the payment instrument is used anonymously or the payment service provider is not in a position, for reasons intrinsic to the payment instrument other than those referred to in subparagraph (a), to prove that a payment transaction was authorised, that Regulations 96 and 97, and Regulation 98(1), (2), (3), (6) and (7) do not apply,

• (c) by way of derogation from Regulation 103(1), where non-execution is apparent from the context, that the payment service provider is not required to notify the payment service user of the refusal of a payment order,

• (d) by way of derogation from Regulation 104, that the payer concerned may not revoke the payment order concerned after transmitting the payment order or giving consent to execute the payment transaction to the payee concerned, and

• (e) by way of derogation from Regulations 107 and 108, that other execution periods apply.

• (3) Regulations 97 and 98 shall also apply to electronic money, as defined in point (2) of Article 2 of Directive 2009/110/EC, except where a payer’s payment service provider does not have the ability to freeze the payment account on which the electronic money is stored or block the payment instrument concerned.

Chapter 2 Authorisation of payment transactions

Consent and withdrawal of consent

• (2) A payment transaction may be authorised by a payer either—

• (a) prior to, or

• (b) where agreed between the payer and the payment service provider, after,

the execution of the payment transaction.

• (3) 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 concerned.

• (4) Consent to execute a payment transaction may be given via a payee or a payment initiation service provider.

• (5) Consent may be withdrawn by a payer until such time as the payment order concerned is irrevocable under Regulation 104.

• (6) Consent to execute a series of payment transactions may be withdrawn by a payer, in which case a payment transaction scheduled to be executed after the date the consent is withdrawn shall be unauthorised.

• (7) The procedure for giving consent shall be agreed between the payer and the payment service provider concerned.

Confirmation on the availability of funds

• (a) the payment account of the payer is accessible online at the time of the request;

• (b) the payer has given explicit consent to the account servicing payment service provider to respond to requests from a specific payment service provider to confirm that the amount corresponding to a particular card-based payment transaction is available on the payer’s payment account;

• (c) the consent referred to in subparagraph (b) has been given before the first request for confirmation is made.

• (2) A payment service provider issuing card-based payment instruments may request the confirmation referred to in paragraph (1) where all of the following conditions are met:

• (a) the payer concerned has given explicit consent to the payment service provider to request the confirmation referred to in paragraph (1) ;

• (b) the payer concerned has initiated the card-based payment transaction for the amount in question using a card-based payment instrument issued by the payment service provider;

• (c) the payment service provider authenticates itself to the account servicing payment service provider concerned before each confirmation request, and securely communicates with the account servicing payment service provider in accordance with the regulatory technical standards specifying the requirements referred to in point (d) of Article 98(1) of the Payment Services Directive.

• (3) The confirmation referred to in paragraph (1) shall consist of a simple ‘yes’ or ‘no’ answer only and not of a statement of the account balance.

• (4) The payment service provider concerned shall not—

• (a) store the confirmation referred to in paragraph (1), or

• (b) use the confirmation referred to in paragraph (1) for purposes other than for the execution of the card-based payment transaction concerned.

• (5) The confirmation referred to in paragraph (1) shall not be used by the account servicing payment service provider concerned as a reason for the blocking of funds on the payer’s payment account.

• (6) A payer may request an account servicing payment service provider to communicate to the payer the identification of the payment service provider concerned and the confirmation provided in accordance with paragraph (1) .

• (7) This Regulation does not apply to payment transactions initiated through card-based payment instruments on which electronic money, as defined in point (2) of Article 2 of Directive 2009/110/EC, is stored.

• (8) This Regulation does not apply where the payment service provider is a credit union.

Rules on access to payment account in the case of payment initiation services

• (2) The right referred to in paragraph (1) shall not apply where the payment account concerned is not accessible online.

• (3) Where a payer gives its explicit consent for a payment to be executed in accordance with Regulation 88, the account servicing payment service provider shall perform the actions specified in paragraph (5) in order to ensure the payer’s right to use the payment initiation service.

• (4) A payment initiation service provider shall—

• (a) not, at any time, hold a payer’s funds in connection with the provision of a payment initiation service,

• (b) ensure that the personalised security credentials of a payment service user are not, with the exception of the user and the issuer of the personalised security credentials, accessible to other parties and that they are transmitted by the payment initiation service provider by safe and efficient means,

• (c) ensure that any other information about a payment service user, obtained when providing payment initiation services, is only provided to the payee concerned and only with the payment service user’s explicit consent,

• (d) on each occasion that a payment is initiated, identify itself to the account servicing payment service provider of a payer and communicate with the account servicing payment service provider, the payer and the payee concerned in a secure way, in accordance with the regulatory technical standards specifying the requirements referred to in point (d) of Article 98(1) of the Payment Services Directive,

• (e) not store sensitive payment data of a payment service user,

• (f) not request from a payment service user any data other than those necessary to provide the payment initiation service concerned,

• (g) not use, access or store any data for purposes other than for the provision of the payment initiation service concerned as explicitly requested by a payer, and

• (h) not modify the amount, the payee or any other feature of a transaction.

• (5) An account servicing payment service provider shall—

• (a) communicate securely with a payment initiation service provider in accordance with the regulatory technical standards specifying the requirements referred to in point (d) of Article 98(1) of the Payment Services Directive,

• (b) immediately after receipt of a payment order from a payment initiation service provider, provide or make available all information on the initiation of the payment transaction concerned and all information accessible to the account servicing payment service provider concerned regarding the execution of the payment transaction to the payment initiation service provider, and