The Payment Services Regulations 2017

[^key-ebb02721420fc878b39126da9b9b95fa]: Words in Sch. 6 para. 1 inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 72(a)(ii) (with s. 2(3)); S.I. 2023/779, reg. 4(zz)(iv)

[^key-0565c01a52c27d53a83138092b1c7950]: Words in Sch. 6 para. 1 substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 72(a)(iii) (with s. 2(3)); S.I. 2023/779, reg. 4(zz)(iv)

[^key-cc290d638b6c0059659082ea1d002ab9]: Words in Sch. 6 para. 4(e) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 72(b) (with s. 2(3)); S.I. 2023/779, reg. 4(zz)(iv)

[^key-ef6d8ceb5004a90709fd551ee1e8c3c7]: Reg. 106(4)(5) inserted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(2)(b)

[^key-87a25f0cc6abf47ac1a55aa5e0bfc149]: Reg. 106(3)(c)(i)(ii) and words inserted (18.9.2023 for specified purposes, 1.1.2025 in so far as not already in force) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a)(3)(c), 4(2)(a); S.I. 2023/1382, reg. 12(a) (with reg. 16(1))

[^key-15931cf279038d44f7bcd6b0909a07ce]: Sch. 6 para. 3(1A)(1B) inserted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(ii)

[^key-c16a3b230931ee0ac763cd5d423b43ed]: Sch. 6 para. 3(2A) inserted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(iv)

[^key-2ebbf21bd5adb5f37756dbf95e729d36]: Words in Sch. 6 para. 3(2) inserted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(iii)(aa)

[^key-33ad6a15a22e4e6213a9a5073d695741]: Words in Sch. 6 para. 3(2) substituted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(iii)(bb)

[^key-35a1121b24454f3cf4b678bffc98f179]: Words in Sch. 6 para. 3(2) substituted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(iii)(cc)

[^key-b30f323b8f65d5e91160779cadad1d5a]: Sch. 6 para. 3(3) substituted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(v)

[^key-3d7664c6363833376f45082fe66eefa6]: Sch. 6 para. 3(1)(d) omitted (18.9.2023) by virtue of The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(a)(i)

[^key-6392a2688110a30a4033052a65ad6288]: Sch. 6 para. 7 renumbered as Sch. 6 para. 7(2) (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(b)(i)

[^key-93a63699563674710e136c25ba67806c]: Sch. 6 para. 7(1) inserted (18.9.2023) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(a), 4(5)(b)(ii)

[^key-8e317d4531daac6b59ff81dbd7c2360c]: Words in reg. 123 substituted (1.1.2024) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(b), 4(3)(a)

[^key-c9e7a898347ccada400a9c44de169dbe]: Words in reg. 123 substituted (1.1.2024) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(b), 4(3)(b)

[^key-8a77928c4c5e709e8c283311669c8bff]: Reg. 125(2A) inserted (1.1.2024) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(b), 4(4)(a)

[^key-bfe87b0933103c0febf147a14093cc8c]: Reg. 125(4A) inserted (1.1.2024) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(b), 4(4)(c)

[^key-09d7dc8a8003db012926243d5031d7b1]: Reg. 125(3) substituted (1.1.2024) by The Electronic Money, Payment Card Interchange Fee and Payment Services (Amendment) Regulations 2023 (S.I. 2023/790), regs. 1(2)(b), 4(4)(b)

[^key-b483f8484747b5939dc16e333effe700]: Reg. 94A inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(5)

[^key-e7dba687ee6859c83dae6a20220f1a9b]: Words in reg. 63(5)(a) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(2)(a)

[^key-c201a780ac05625eb91e670ecef603c6]: Reg. 63(5)(a): comma substituted for word (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(2)(b)

[^key-eeed50cd7bc650381e37e4d49fcf184d]: Words in reg. 63(5)(a) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(2)(c)

[^key-0f9d0bf13899304e853e9ed91a50887d]: Reg. 85(1A) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(3)(b)

[^key-8d1d8972871948b13734368be53429e5]: Words in reg. 85(1) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(3)(a)

[^key-fdf6b6d5b4a01c7dfe3034797975bee0]: Reg. 86(2A)-(2D) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(4)(b)

[^key-9833dc6d632e10f833e3a2d6cd35dadc]: Words in reg. 86(3)(a) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(4)(c)

[^key-10ea79990b8a628ae371969e835371a9]: Words in reg. 86(1) inserted (30.10.2024) by The Payment Services (Amendment) Regulations 2024 (S.I. 2024/1013), regs. 1(2), 2(4)(a)

[^key-7f883dca56f6adf6b7cf2544051eded4]: Words in reg. 107 heading substituted (27.2.2025) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendments) Regulations 2025 (S.I. 2025/82), reg. 1(2), Sch. 9 para. 23(a)

[^key-a3961c358d99a577f9f20858c6ed05b6]: Words in reg. 107(c) substituted (27.2.2025) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendments) Regulations 2025 (S.I. 2025/82), reg. 1(2), Sch. 9 para. 23(a)

[^key-57f4fe332142fd325fdde70052cf2a6b]: Word in Sch. 6 para. 13(g) substituted (27.2.2025) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendments) Regulations 2025 (S.I. 2025/82), reg. 1(2), Sch. 9 para. 23(b)

[^key-c5e80fe8781fd3297572c5a6db50a641]: Words in reg. 135(2)(b) substituted (6.4.2025) by The Digital Markets, Competition and Consumers Act 2024 (Consequential Amendments) Regulations 2025 (S.I. 2025/381), reg. 1(2), Sch. para. 38

[^key-c12fe858b3088b7aa4cfe25e7c318866]: Sch. 1 para. 4 inserted (25.2.2026 for specified purposes) by The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (S.I. 2026/102), regs. 1(2)(3), 49(2) (with regs. 53-56)

Insolvency Regulations

23A

Sections 93(4) and 233 to 236 of the Banking Act 2009 apply to authorised payment institutions and small payment institutions with the modifications set out in Schedule 3A.

Accounting and statutory audit

Outsourcing

SCHEDULE 3A — Application and modification of the Banking Act 2009

Insolvency regulations

1

Section 93(4) of the Banking Act 2009 (interpretation: other expressions) applies as if—

• (a) the reference to a bank were to an authorised payment institution or small payment institution;

• (b) the reference to an agreement in paragraph (a) were to a contract for payment services; and

• (c) in the closing words, from “for the purposes” to “the bank” were omitted.

2

Section 233 of the Banking Act 2009 (insolvency regulations) applies as if—

• (a) references to investment bank insolvency regulations were to payment institution insolvency regulations;

• (b) references to investment banks were to authorised payment institutions and small payment institutions;

• (c) references to client assets were to relevant funds;

• (d) in subsection (3)(c), the reference to clients were to payment service users; and

• (e) in subsection (4)—

• (i) references to assets included references to money; and

• (ii) in paragraph (b), for “those which an institution undertook to hold for clients” there were substituted “relevant funds”.

3

Section 234 of the Banking Act 2009 (regulations: details) applies as if—

• (a) references to investment bank insolvency regulations were to payment institution insolvency regulations;

• (b) references to an investment bank were to an authorised payment institution or a small payment institution;

• (c) in subsection (2)(a), the reference to a trustee of client assets were to a trustee in respect of relevant funds;

• (d) in subsection (6)—

• (i) references to assets included references to money;

• (ii) for paragraphs (a) and (b) there were substituted—

(a) establishing a mechanism for determining which assets are held in the asset pool; (b) establishing a mechanism for determining that assets are to be, or not to be, treated as part of the asset pool; (ba) establishing a mechanism for determining whether the asset pool is sufficient to satisfy all the claims of the payment service users in question; (bb) for steps to be taken by the administrator, if it is determined that the asset pool is not sufficient to satisfy all the claims of the payment service users in question; (bc) about the constitution of the asset pool;

• (iii) in paragraphs (c) and (f), the references to client assets were to the asset pool; and

• (iv) in paragraph (e), “financial” were omitted; and

• (e) in subsection (7)(a), the reference to client assets were to relevant funds.

4

Section 235 of the Banking Act 2009 (regulations: procedure) applies as if—

• (a) references to investment bank insolvency regulations were to payment institution insolvency regulations; and

• (b) subsections (4), (5) and (6) were omitted.

5

Section 236 of the Banking Act 2009 (review) applies as if the reference to investment bank insolvency regulations were to payment institution insolvency regulations.

6

For the purposes of the modifications in this Schedule—

• “relevant funds” has the meaning given to it in regulation 23(1) of these Regulations, and

• “asset pool” has the meaning given to it in regulation 23(18) of these Regulations.

Technical standards

106A

• (1) The FCA may make technical standards specifying—

• (a) requirements that must be met by the strong customer authentication referred to in regulation 100(1) and (2);

• (b) exemptions from the application of regulation 100(1), (2) and (3), based on the criteria specified in paragraph (3) of this regulation;

• (c) the requirements with which security measures have to comply, in accordance with regulation 100(3), in order to protect the confidentiality and integrity of the payment service users' personalised security credentials;

• (d) the requirements for common and secure open standards of communication for the purpose of identification, authentication, notification and information, as well as for the implementation of security measures, between account servicing payment service providers, payment initiation service providers, account information service providers, payers, payees and other payment service providers.

• (2) In making technical standards under this regulation, the FCA must have regard to the need to—

• (a) ensure an appropriate level of security for payment service users and payment service providers through the adoption of effective and risk-based requirements;

• (b) ensure the safety of payment service users' funds and personal data;

• (c) secure and maintain fair competition among all payment service providers;

• (d) ensure technology and business-model neutrality;

• (e) allow for the development of user-friendly, accessible and innovative means of payment.

• (3) The exemptions referred to in paragraph (1)(b) must be based on—

• (a) the level of risk involved in the service provided;

• (b) the amount of the transaction, its recurrence, or both;

• (c) the payment channel used for the execution of the transaction.

• (4) The FCA must review and, if appropriate, update the technical standards on a regular basis in order (among other things) to take account of innovation and technological developments.

• (5) Section 138P of the 2000 Act contains provision about the making of technical standards by the FCA.

Application of this Part to requirements of assimilated direct legislation and FCA rules

Single Euro Payments Area

148A

• (1) If the SEPA Regulation is revoked under regulation 15 of the Credit Transfers and Direct Debits in Euro (Amendment) (EU Exit) Regulations 2018, the Treasury may by regulations make such amendments of regulations 40, 63, 66 and 85 of these Regulations as appear to them to be appropriate in connection with the revocation.

• (2) Regulations under this regulation may contain transitional and consequential provisions and savings.

• (3) A statutory instrument containing regulations under paragraph (1) is subject to annulment in pursuance of a resolution of either House of Parliament.

Exercise of market access rights by Gibraltar-based firms

References to Gibraltar regulator

2A

• (1) The Treasury may by regulations made by statutory instrument make such amendments of the references in paragraphs 1 and 2 to the Gibraltar Financial Services Commission, or any references previously substituted for those references, as appear to the Treasury to be appropriate in order to take account of any change in the law of Gibraltar.

• (2) A statutory instrument containing regulations under sub-paragraph (1) is subject to annulment in pursuance of a resolution of either House of Parliament.

Modification of legislation

3

• (1) The provision of cash otherwise than through an automatic teller machine does not constitute a payment service where—

• (a) there is a transfer of a corresponding amount from a payment account held by the recipient of the cash to a relevant person, and

• (b) the payment account is not provided by a relevant person.

• (2) In sub-paragraph (1), “relevant person” means—

• (a) where the cash is provided by a person (“P1”) through one or more persons acting on P1's behalf, P1 and each person acting (directly or indirectly) on P1's behalf;

• (b) where the cash is provided by a person (“P2”) otherwise than on behalf of another person or through one or more persons acting on P2's behalf, P2.

• (3) The execution of the transfer referred to in sub-paragraph (1)(a), and other services enabling that transfer, are not excluded from the meaning of payment services by this paragraph.

Liability of payment service provider for charges and interest as a consequence of delay under regulation 86(2B)

94A

A payment service provider is liable to its payment service user for—

• (a) any charges for which the payment service user is responsible; and

• (b) any interest which the payment service user must pay,

as a consequence of a delay to the execution of a payment order in reliance on regulation 86(2B), irrespective of whether the payment order is ultimately executed.

Right of recourse

Force majeure

4

The activity specified by article 9M of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (issuing qualifying stablecoin) does not constitute a payment service.