Legalize / United Kingdom / Statutory-Instrument

The Payment Services Regulations 2017

Type Statutory-Instrument

Publication 2017-07-18

Last updated 2026-02-25

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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“insolvency event” means any of the following procedures in relation to an authorised payment institution or small payment institution—the making of a winding-up order;the passing of a resolution for voluntary winding-up;the entry of the institution into administration;the appointment of a receiver or manager of the institution's property;the approval of a proposed voluntary arrangement (being a composition in satisfaction of debts or a scheme of arrangement);the making of a bankruptcy order;in Scotland, the award of sequestration;the making of any deed of arrangement for the benefit of creditors or, in Scotland, the execution of a trust deed for creditors;the conclusion of any composition contract with creditors; ...the making of an insolvency administration order or, in Scotland, sequestration, in respect of the estate of a deceased person; the entry of the institution into payment institution special administration; or; the entry of the institution into investment bank special administration.

“insolvency proceeding” means—winding-up, administration, receivership, bankruptcy or, in Scotland, sequestration;a voluntary arrangement, deed of arrangement or trust deed for the benefit of creditors; orthe administration of the insolvent estate of a deceased person;

“investment bank special administration” has the same meaning as in the Investment Bank Special Administration Regulations 2011 (see regulation 3(1) of those Regulations);

“payment institution special administration” has the same meaning as in the Payment and Electronic Money Institution Insolvency Regulations 2021 (see regulation 4(3));

“rules” has the meaning given in regulation 2(1) of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (interpretation);

“security right” means—security for a debt owed by an authorised payment institution or a small payment institution and includes any charge, lien, mortgage or other security over the asset pool or any part of the asset pool; andany charge arising in respect of the expenses of a voluntary arrangement;

“settlement” and “system” have the same meanings as in the Financial Markets and Insolvency (Settlement Finality) Regulations 1999.

(19) In paragraph (18), “approved foreign credit institution” means—

(a) the central bank of a State that is a member of the Organisation for Economic Co-operation and Development (“an OECD state”),

(b) a credit institution that is supervised by the central bank or other banking regulator of an OECD state,

(i) is subject to regulation by the banking regulator of a State that is not an OECD state,

(ii) is required by the law of the country or territory in which it is based to provide audited accounts,

(iii) has minimum net assets of £5 million (or its equivalent in any other currency at the relevant time),

(iv) has a surplus of revenue over expenditure for the last two financial years, and

(v) has an annual report which is not materially qualified.

Accounting and statutory audit

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(1) Where an authorised payment institution carries on activities other than the provision of payment services, it must provide to the FCA separate accounting information in respect of its provision of payment services.

(2) Such accounting information must be subject, where relevant, to an auditor's report prepared by the institution's statutory auditor.

(3) A statutory auditor ... (“the auditor”) must, in any of the circumstances referred to in paragraph (4), communicate to the FCA information on, or its opinion on, matters—

(a) of which it has become aware in its capacity as auditor of an authorised payment institution or of a person with close links to an authorised payment institution; and

(b) which relate to payment services provided by that institution.

(4) The circumstances are that—

(a) the auditor reasonably believes that—

(i) there is or has been, or may be or may have been, a contravention of any requirement imposed on the authorised payment institution by or under these Regulations; and

(ii) the contravention may be of material significance to the FCA in determining whether to exercise, in relation to that institution, any functions conferred on the FCA by these Regulations;

(b) the auditor reasonably believes that the information on, or his opinion on, those matters may be of material significance to the FCA in determining whether the institution meets or will continue to meet the conditions set out in regulation 6(4) to (9) (conditions for authorisation) and, if applicable, the requirement in regulation 22(1) (capital requirements) to maintain own funds;

(d) the auditor is precluded from stating in his report that the annual accounts have been properly prepared in accordance with the Companies Act 2006;

(e) the auditor is precluded from stating in his report, where applicable, that the annual accounts give a true and fair view of the matters referred to in section 495 of the Companies Act 2006 (auditor's report on company's annual accounts) including as it is applied and modified by regulation 39 of the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 (“the LLP Regulations”) (auditor's report) ; or

(f) the auditor is required to state in his report in relation to the person concerned any of the facts referred to in subsection (2), (3) or (5) of section 498 of the Companies Act 2006 (duties of auditor) or, in the case of limited liability partnerships, subsection (2), (3) or (4) of section 498 as applied and modified by regulation 40 of the LLP Regulations (duties and rights of auditors).

(5) In this regulation a person has close links with an authorised payment institution (“A”) if that person is—

(a) a parent undertaking of A;

(b) a subsidiary undertaking of A;

(d) a subsidiary undertaking of a parent undertaking of A.

(6) In this regulation “statutory auditor” has the same meaning as in Part 42 of the Companies Act 2006 (see section 1210 of that Act).

Outsourcing

25

(1) An authorised payment institution must notify the FCA of its intention to enter into a contract with another person under which that other person will carry out any operational function relating to its provision of payment services (“outsourcing”).

(2) Where an authorised payment institution intends to outsource any important operational function, including the provision of an information technology system, all of the following conditions must be met—

(a) the outsourcing is not undertaken in such a way as to impair—

(i) the quality of the authorised payment institution's internal control; or

(ii) the ability of the FCA to monitor and retrace the authorised payment institution's compliance with these Regulations;

(b) the outsourcing does not result in any delegation by the senior management of the authorised payment institution of responsibility for complying with the requirements imposed by or under these Regulations;

(c) the relationship and obligations of the authorised payment institution towards its payment service users under these Regulations is not substantially altered;

(d) compliance with the conditions which the authorised payment institution must observe in order to be authorised and remain so is not adversely affected; and

(e) none of the conditions of the payment institution's authorisation requires removal or variation.

(3) For the purposes of paragraph (2), an operational function is important if a defect or failure in its performance would materially impair—

(a) compliance by the authorised payment institution with these Regulations and any requirements of its authorisation;

(b) the financial performance of the authorised payment institution; or

(4) An authorised payment institution must notify the FCA without undue delay of any change in outsourced functions or the persons to which functions are outsourced.

Exercise of passport rights

Application of regulations 27 to 30 to account information service providers

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Notice of intention

27

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Decision following notice of intention

28

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Notice of intention from an EEA authorised payment institution

29

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Supervision of firms exercising passport rights

30

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PART 4 — Provisions Applicable to Authorised Payment Institutions and Small Payment Institutions

Record keeping

31

(1) An authorised payment institution or small payment institution must maintain relevant records and keep them for at least five years from the date on which the record was created.

(2) For the purposes of paragraph (1), records are relevant where they relate to compliance with obligations imposed by or under Parts 2 to 5 and, in particular, would enable the FCA to supervise effectively such compliance.

Additional activities

32

(1) Authorised payment institutions and small payment institutions may, in addition to providing payment services, engage in the following activities—

(a) the provision of operational and closely related ancillary services, including—

(i) ensuring the execution of payment transactions;

(ii) foreign exchange services;

(iii) safe-keeping activities; and

(iv) the storage and processing of data;

(b) the operation of payment systems; and

(c) business activities other than the provision of payment services, subject to any relevant provision of ... national law.

(2) Authorised payment institutions and small payment institutions may grant credit in relation to the provision of the payment services specified in paragraph 1(d) or (e) of Schedule 1 (execution of payment transactions where funds are covered by a credit line, issuing payment instruments or acquiring payment transactions) only if—

(a) such credit is ancillary and granted exclusively in connection with the execution of a payment transaction;

(b) such credit is not granted from the funds received or held for the purposes of executing payment transactions; and

(d) in relation to an authorised payment institution, in the opinion of the FCA the institution's own funds are, and continue to be, adequate in the light of the overall amount of credit granted.

Payment accounts and sums received for the execution of payment transactions

33

Any payment account held by an authorised payment institution or a small payment institution must be used only in relation to payment transactions.

Use of agents

34

(1) Authorised payment institutions , small payment institutions and registered account information service providers may not provide payment services in the United Kingdom through an agent unless the agent is included on the register.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An application for an agent to be included on the register must—

(a) contain, or be accompanied by, the following information—

(i) the name and address of the agent;

(ii) where relevant, a description of the internal control mechanisms that will be used by the agent to comply with the provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 ;

(iii) the identity of the directors and persons responsible for the management of the agent and, if the agent is not a payment service provider, evidence that they are fit and proper persons;

(iv) the payment services for which the agent is appointed;

(v) the unique identification code or number of the agent, if any; and

(vi) such other information as the FCA may reasonably require; and

(b) be made in such manner as the FCA may direct.

(4) Different directions may be given, and different requirements imposed, in relation to different applications or categories of application.

(5) At any time after receiving an application and before determining it, the FCA may require the applicant to provide it with such further information as it reasonably considers necessary to enable it to determine the application.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) The FCA may refuse to include the agent on the register only if—

(a) it has not received the information referred to in paragraph (3)(a), or is not satisfied that such information is correct;

(b) it is not satisfied that the directors and persons responsible for the management of the agent are fit and proper persons;

(i) money laundering or terrorist financing within the meaning of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 is taking place, has taken place, or has been attempted; or

(ii) the risk of such activities taking place would be increased.

(8) If the FCA proposes to refuse to include the agent on the register, it must give the authorised payment institution , the small payment institution or the registered account information service provider, as the case may be, a warning notice.

(9) The FCA must, having considered any representations made in response to the warning notice—

(a) if it decides not to include the agent on the register, give the applicant a decision notice; or

(b) if it decides to include the agent on the register, give the applicant notice of its decision, stating the date on which the registration takes effect.

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) The FCA must give any notice required by paragraph (9) within a period of two months beginning on the date on which the FCA received the completed application.

(12) If the FCA decides not to include the agent on the register the applicant may refer the matter to the Upper Tribunal.

(13) If the FCA decides to include the agent on the register, it must update the register as soon as practicable.

(14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(15) An application under paragraph (3) may be combined with an application under regulation 5 , 13 or 17, in which case the application must be determined in the manner set out in regulation 9 (determination of application for authorisation) (if relevant, as applied by regulation 15 or 19 (supplementary provisions relating to applications for registration as a small payment institution or account information service provider).

(16) An authorised payment institution , a small payment institution or a registered account information service provider must ensure that agents acting on its behalf inform payment service users of the agency arrangement.

(17) An authorised payment institution , a small payment institution or a registered account information service provider must notify the FCA without undue delay if there is any change in the information provided under paragraph (3) or (5).

Removal of agent from register

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(1) The FCA may remove an agent of an authorised payment institution , small payment institution or registered account information service provider from the register where—

(a) the authorised payment institution , small payment institution or registered account information service provider requests, or consents to, the agent's removal from the register;

(b) the authorised payment institution , small payment institution or registered account information service provider has obtained registration through false statements or any other irregular means;

(d) the removal is desirable in order to protect the interests of consumers; or

(e) the agent's provision of payment services is otherwise unlawful.

(2) Where the FCA proposes to remove an agent from the register, other than at the request of the authorised payment institution , small payment institution or registered account information service provider, it must give the authorised payment institution , small payment institution or registered account information service provider a warning notice.

(3) The FCA must, having considered any representations made in response to the warning notice—

(a) if it decides to remove the agent, give the authorised payment institution , small payment institution or registered account information service provider a decision notice; or

(b) if it decides not to remove the agent, give the authorised payment institution , small payment institution or registered account information service provider notice of its decision.

(4) If the FCA decides to remove the agent, other than at the request of the authorised payment institution , small payment institution or registered account information service provider, the authorised payment institution, small payment institution or registered account information service provider may refer the matter to the Upper Tribunal.

(5) Where the period for a reference to the Upper Tribunal has expired without a reference being made, the FCA must as soon as practicable update the register accordingly.

Reliance

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(1) Where an authorised payment institution , a small payment institution or a registered account information service provider relies on a third party for the performance of operational functions it must take all reasonable steps to ensure that these Regulations are complied with.

(2) Without prejudice to paragraph (1), an authorised payment institution , a small payment institution or a registered account information service provider is responsible, to the same extent as if it had expressly permitted it, for anything done or omitted by any of its employees, any agent or branch providing payment services on its behalf, or any entity to which activities are outsourced.

Duty to notify change in circumstance

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(1) Where it becomes apparent to an authorised payment institution , a small payment institution or a registered account information service provider that there is, or is likely to be, a significant change in circumstances which is relevant to—

(a) in the case of an authorised payment institution—

(i) its fulfilment of any of the conditions set out in regulation 6(4) to (9) (conditions for authorisation) and, if applicable, the requirement in regulation 22(1) (capital requirements) to maintain own funds;

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) in the case of a small payment institution, its fulfilment of any of the conditions set out in regulation 14(5) to (11) (conditions for registration as a small payment institution) and compliance with the financial limit referred to in regulation 8 (as modified by regulation 15) (variation of registration at request of small payment institution); ...

(ba) in the case of a registered account information service provider, its fulfilment of any of the conditions set out in regulation 18(3) and (4) (conditions for registration); and

(c) in the case of the use of an agent to provide payment services, the matters referred to in regulation 34(7)(b) and (c) (use of agents),

it must provide the FCA with details of the change without undue delay, or, in the case of a substantial change in circumstances which has not yet taken place, details of the likely change a reasonable period before it takes place.

(2) Any information to be provided to the FCA under this regulation must be in such form or verified in such manner as it may direct.

PART 5 — Requirements for providers of certain services which are not payment services

Notification of use of limited network exclusion

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(1) If a person (“service provider”) provides services of the type falling within paragraph 2(k)(i) to (iii) of Schedule 1 (limited network exclusion) and the total value of the payment transactions executed through such services provided by the service provider in any period of 12 months exceeds 1 million euros, the service provider must notify the FCA.

(2) 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).

(3) A notification under paragraph (1) must—

(a) include a description of the services offered; and

(b) specify the exclusion by virtue of which the services are not payment services.

(4) Notifications and information provided to the FCA under this regulation must be given—

(a) within such time as the FCA may direct after the end of the period of 12 months referred to in paragraph (1); and

(b) in such form or verified in such manner as the FCA may direct,

and different directions may be given in relation to different notifications or information or categories of notification or information.

(5) When the FCA receives a notification under this regulation, the FCA must assess whether the notified services fall within paragraph 2(k)(i) to (iii) of Schedule 1.

(6) If the FCA considers that any part of the notified services does not fall within paragraph 2(k)(i) to (iii) of Schedule 1—

(a) the FCA must notify the service provider, and

(b) the service provider may refer the matter to the Upper Tribunal.

Notification of use of electronic communications exclusion

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(1) If a person (“service provider”) provides, or intends to provide, a service for payment transactions falling within paragraph 2(l) of Schedule 1 (electronic communications exclusion), the service provider must—

(a) notify the FCA, and

(b) include with such notification a description of the service.

(2) The service provider must provide a notification under paragraph (1)—

(a) if the service provider starts to provide the service before 13th January 2018, on or before that date, or

(b) otherwise, before the service provider starts to provide the service.

(3) The service provider must also provide to the FCA, at such times as the FCA may direct, an annual audit opinion testifying that the transactions for which the service is provided comply with the limits mentioned in paragraph 2(l) of Schedule 1.

(4) Information provided to the FCA under this regulation must be in such form or verified in such manner as the FCA may direct.

(5) Different directions may be given under paragraph (3) and (4) in relation to different service providers or different categories of service provider.

PART 6 — Information Requirements for Payment Services

Application

Application of Part 6

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(1) This Part applies to payment services where—

(a) the services are provided from an establishment maintained by a payment service provider or its agent in the United Kingdom; and

(b) the services are provided in one of the following circumstances—

(i) the payment service providers of both the payer and the payee are located within the United Kingdom and the service relates to a transaction in sterling;

(ia) the payment service providers of both the payer and the payee are located within the qualifying area and the service relates to a transaction in euro executed under a payment scheme which operates across the qualifying area;

(ii) the payment service providers of both the payer and the payee are located within the United Kingdom and the service relates to a transaction in a currency other than sterling or euro; or

(iii) the payment service provider of either the payer or the payee, but not both, is located within the United Kingdom and the case does not fall within paragraph (ia).

(1A) In paragraph (1)(b)(ia)—

(a) “payment service provider” includes any person who is a PSP as defined in Article 2(8B) of the SEPA regulation;

(b) “the qualifying area” means the area of the United Kingdom and the EEA States.

(2) In the circumstances mentioned at paragraph (1)(b)(ii)—

(a) this Part applies only in respect of those parts of a transaction which are carried out in the United Kingdom; and

(b) regulations 43(2)(b) and 52(a) and paragraph 2(e) of Schedule 4 (maximum execution time) do not apply.

(3) In the circumstances mentioned at paragraph (1)(b)(iii)—

(a) this Part applies only in respect of those parts of a transaction which are carried out in the United Kingdom; and

(b) regulations 43(2)(b) and 52(a) and paragraphs 2(e) and 5(g) of Schedule 4 (maximum execution time and conditions for refund of direct debits) do not apply.

(4) This Part does not apply to registered account information service providers ..., except for regulations 59 (burden of proof on payment service provider) and 60 (information requirements for account information service providers).

(5) Regulations 43 to 47 apply to payment services provided under a single payment service contract.

(6) Regulations 48 to 54 apply to payment services provided under a framework contract.

(7) If the payment service user is not a consumer, a micro-enterprise or a charity, the parties to a contract for payment services may agree that any or all of the provisions of this Part do not apply.

(8) Paragraph (1) applies to cash withdrawal services falling within paragraph 2(o) of Schedule 1 as if—

(a) references to payment services were references to cash withdrawal services falling within paragraph 2(o) of Schedule 1;

(b) references to payment service providers were references to providers of cash withdrawal services falling within paragraph 2(o) of Schedule 1; and

Application of this Part in the case of consumer credit agreements

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(1) This regulation applies where a payment service is provided in relation to payment transactions that consist of the placing, transferring or withdrawal of funds covered by a credit line provided under a regulated agreement.

(2) Regulations 50 (changes in contractual information) and 51 (termination of framework contract) do not apply.

(3) Where a payment service provider is required to provide the same information to a payment service user by a provision in this Part and by a provision in the Consumer Credit Act 1974 or subordinate legislation made under that Act (“a CCA provision”), information which has been provided in compliance with the CCA provision, and which was provided in a manner which complies with the requirements of the provision in this Part, need not be provided again in order to comply with the provision in this Part.

Disapplication of certain regulations in the case of low-value payment instruments

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(1) This regulation applies in respect of payment instruments which, under the framework contract governing their use—

(a) can be used only to execute individual payment transactions of 30 euros or less, or in relation to payment transactions executed wholly within the United Kingdom, 60 euros or less;

(b) have a spending limit of 150 euros or, where payment transactions must be executed wholly within the United Kingdom, 300 euros; or

(2) Where this regulation applies—

(a) regulations 48 and 52 do not apply and the payment service provider is only required to provide the payer with information about the main characteristics of the payment service, including—

(i) the way in which the payment instrument can be used;

(ii) the liability of the payer, as set out in regulation 77 (payer or payee's liability for unauthorised payment transactions);

(iii) charges levied;

(iv) any other material information the payer might need to take an informed decision; and

(v) an indication of where the information specified in Schedule 4 (prior general information for framework contracts) is made available in an easily accessible manner;

(b) the parties may agree that regulations 53 and 54 do not apply and instead—

(i) the payment service provider must provide or make available a reference enabling the payment service user to identify the payment transaction, the amount of the payment transaction and any charges payable in respect of the payment transaction;

(ii) in the case of several payment transactions of the same kind made to the same payee, the payment service provider must provide or make available to the payment service user information about the total amount of the payment transactions and any charges for those payment transactions; or

(iii) where the payment instrument is used anonymously or the payment service provider is not otherwise technically able to provide or make available the information specified in paragraph (i) or (ii), the payment service provider must enable the payer to verify the amount of funds stored; and

(c) the parties may agree that regulation 55(1) does not apply to information provided or made available in accordance with regulation 50.

Single payment service contracts

Information required prior to the conclusion of a single payment service contract

43

(1) A payment service provider must provide or make available to the payment service user the information specified in paragraph (2) in relation to the service, whether by supplying a copy of the draft single payment service contract or supplying a copy of the draft payment order or otherwise, either—

(a) before the payment service user is bound by the single payment service contract; or

(b) immediately after the execution of the payment transaction, where the contract is concluded at the payment service user's request using a means of distance communication which does not enable provision of such information in accordance with sub-paragraph (a).

(2) The information referred to in paragraph (1) is—

(a) 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;

(b) the maximum time in which the payment service will be executed;

(c) the charges payable by the payment service user to the user's payment service provider and, where applicable, a breakdown of such charges;

(d) where applicable, the actual or reference exchange rate to be applied to the payment transaction; and

(e) such of the information specified in Schedule 4 (prior general information for framework contracts) as is relevant to the single payment service contract in question.

(3) Where a payment order is to be initiated through a payment initiation service provider, the payment initiation service provider must also provide or make available to the payer, before the payment is initiated, clear and comprehensive information as follows—

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

(b) the address of the head office of the payment initiation service provider;

(c) where applicable, the address of the head office of the agent or branch through which the payment initiation service provider provides services in the United Kingdom;

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

(e) the contact details of the FCA.

Information required after the initiation of a payment order

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(1) Where a payment order is initiated through a payment initiation service provider, immediately after the initiation of the payment order the payment initiation service provider must provide or make available to the payer and, where applicable, to the payee—

(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 order;

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

(2) Where a payment order is initiated through a payment initiation service provider, the payment initiation service provider must provide or make available to the payer's account servicing payment service provider the reference for the payment transaction.

Information required after receipt of the payment order

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(1) The payer's payment service provider must, immediately after receipt of the payment order, provide or make available to the payer the information specified in paragraph (2) in relation to the service to be provided by the payer's payment service provider.

(2) The information referred to in paragraph (1) is—

(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 an exchange rate is used in the payment transaction and the actual rate used in the payment transaction differs from the rate provided in accordance with regulation 43(2)(d), the actual rate used or a reference to it, and the amount of the payment transaction after that currency conversion; and

(e) the date on which the payment service provider received the payment order.

Information for the payee after execution

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(1) The payee's payment service provider must, immediately after the execution of the payment transaction, provide or make available to the payee the information specified in paragraph (2) in relation to the service provided by the payee's payment service provider.

(2) The information referred to in paragraph (1) is—

(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 amount 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; and

(e) the credit value date.

Avoidance of duplication of information

47

Where a payment order for a single payment transaction is transmitted by way of a payment instrument issued under a framework contract, the payment service provider in respect of that single payment transaction need not provide or make available under regulations 43 to 46 information which has been provided or made available, or will be provided or made available, under regulations 48 to 53 by another payment service provider in respect of the framework contract.

Framework contracts

Prior general information for framework contracts

48

(1) A payment service provider must provide to the payment service user the information specified in Schedule 4 (prior general information for framework contracts), either—

(a) in good time before the payment service user is bound by the framework contract; or

(b) where the contract is concluded at the payment service user's request using a means of distance communication which does not enable provision of such information in accordance with sub-paragraph (a), immediately after the conclusion of the contract.

(2) The payment service provider may discharge the duty under paragraph (1) by providing a copy of the draft framework contract provided that such contract includes the information specified in Schedule 4 (prior general information for framework contracts).

Information during period of contract

49

If the payment service user so requests at any time during the contractual relationship, the payment service provider must provide the information specified in Schedule 4 (prior general information for framework contracts) and the terms of the framework contract.

Changes in contractual information

50

(1) Subject to paragraph (4), any proposed changes to—

(a) the existing terms of the framework contract; or

(b) the information specified in Schedule 4 (prior general information for framework contracts),

must be provided by the payment service provider to the payment service user no later than two months before the date on which they are to take effect.

(2) The framework contract may provide for any such proposed changes to be made unilaterally by the payment service provider where the payment service user does not, before the proposed date of entry into force of the changes, notify the payment service provider to the contrary.

(3) Where paragraph (2) applies, the payment service provider must inform the payment service user that

(a) the payment service user will be deemed to have accepted the changes in the circumstances referred to in that paragraph; and

(b) the payment service user has the right to terminate the framework contract without charge at any time before the proposed date of their entry into force.

(4) Changes in the interest or exchange rates may be applied immediately and without notice where—

(a) such a right is agreed under the framework contract and any such changes in interest or exchange rates are based on the reference interest or exchange rates information which has been provided to the payment service user in accordance with this Part; or

(b) the changes are more favourable to the payment service user.

(5) The payment service provider must inform the payment service user of any change to the interest rate as soon as possible unless the parties have agreed on a specific frequency or manner in which the information is to be provided or made available.

(6) Any change in the interest or exchange rate used in payment transactions must be implemented and calculated in a neutral manner that does not discriminate against payment service users.

Termination of framework contract

51

(1) The payment service user may terminate the framework contract at any time unless the parties have agreed on a period of notice not exceeding one month.

(2) Any charges for the termination of the contract must reasonably correspond to the actual costs to the payment service provider of termination.

(3) The payment service provider may not charge the payment service user for the termination of a framework contract after the expiry of 6 months of the contract.

(4) The payment service provider may terminate a framework contract concluded for an indefinite period by giving at least two months' notice, if the contract so provides.

(5) Notice of termination given in accordance with paragraph (4) must be provided in the same way as information is required by regulation 55(1) (communication of information) to be provided or made available.

(6) Where charges for the payment service are levied on a regular basis, such charges must be apportioned up until the time of the termination of the contract and any charges paid in advance must be reimbursed proportionally.

(7) This regulation does not affect any right of a party to the framework contract to treat it, in accordance with the general law of contract, as unenforceable, void or discharged.

Information prior to execution of individual payment transaction

52

Where an individual payment transaction under a framework contract is initiated by the payer, at the payer's request the payer's payment service provider must inform the payer of—

(a) the maximum execution time;

(b) the charges payable by the payer in respect of the payment transaction; and

Information for the payer on individual payment transactions

53

(1) The payer's payment service provider under a framework contract must provide to the payer the information specified in paragraph (2) in respect of each payment transaction on paper or on another durable medium at least once per month free of charge.

(2) The information is—

(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 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; and

(e) the debit value date or the date of receipt of the payment order.

(3) A framework contract may include a condition that the payer may require the information specified in paragraph (2) be provided or made available periodically at least once a month, free of charge and in an agreed manner which enables the payer to store and reproduce the information unchanged.

(4) Paragraph (1) does not require a payment service provider to provide information where—

(a) the information has been, or is to be, provided or made available as required by the payer under a condition of the type referred to in paragraph (3); or

(b) more than one month has passed since information was last provided, but there are no payment transactions in respect of which the payment service provider has not previously provided or made available information in accordance with paragraph (1) or as required by the payer under a condition of the type referred to in paragraph (3).

Information for the payee on individual payment transactions

54

(1) The payee's payment service provider under a framework contract must provide to the payee the information specified in paragraph (2) in respect of each payment transaction on paper or on another durable medium at least once per month free of charge.

(2) The information is—

(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; and

(e) the credit value date.

(3) A framework contract may include a condition that the information specified in paragraph (2) is to be provided or made available periodically at least once a month and in an agreed manner which enables the payee to store and reproduce the information unchanged.

(4) Paragraph (1) does not require a payment service provider to provide information where—

(a) the information has been, or is to be, provided or made available in accordance with a condition of the type referred to in paragraph (3); or

(b) more than one month has passed since information was last provided, but there are no payment transactions in respect of which the payment service provider has not previously provided or made available information in accordance with paragraph (1) or in accordance with a condition of the type referred to in paragraph (3).

Common provisions

Communication of information

55

(1) Subject to regulation 42(2)(c) (disapplication of certain regulations in the case of low-value payment transactions), any information provided or made available in accordance with this Part must be provided or made available—

(a) in the case of single payment service contracts, in an easily accessible manner;

(b) subject to paragraph (2), on paper or on another durable medium;

(d) in English or in the language agreed by the parties.

(2) Paragraph (1)(b)—

(a) in the case of single payment service contracts, only applies where the payment service user so requests; and

(b) in the case of framework contracts, is subject to any agreement in accordance with regulation 53(3) or 54(3) (information for the payer or payee on individual payment transactions) as to the manner in which information is to be provided or made available.

Charges for information

56

(1) A payment service provider may not charge for providing or making available information which is required to be provided or made available by this Part.

(2) The payment service provider and the payment service user may agree on charges for any information which is provided at the request of the payment service user where such information is—

(a) additional to the information required to be provided or made available by this Part;

(b) provided more frequently than is specified in this Part; or

(3) Any charges imposed under paragraph (2) must reasonably correspond to the payment service provider's actual costs.

Currency and currency conversion

57

(1) Payment transactions must be executed in the currency agreed between the parties.

(2) Where a currency conversion service is offered before the initiation of the payment transaction—

(a) at an automatic teller machine or the point of sale; or

(b) by the payee,

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

Information on additional charges or reductions

58

(1) The payee must inform the payer of any charge requested or reduction offered by the payee for the use of a particular payment instrument before the initiation of the payment transaction.

(2) The payment service provider, or any relevant other party involved in the transaction, must inform the payment service user of any charge requested by the payment service provider or other party, as the case may be, for the use of a particular payment instrument before the initiation of the payment transaction.

(3) A payer or payment service user is not obliged to pay a charge of the type referred to in paragraph (1) or (2) if the payer or payment service user was not informed of the full amount of the charge in accordance with the relevant paragraph.

Burden of proof on payment service provider

59

Where a payment service provider is alleged to have failed to provide information in accordance with this Part, it is for the payment service provider to prove that it provided the information in accordance with this Part.

Other information requirements

Information requirements for account information service providers

60

(1) A registered account information service provider ... must provide to the payment service user—

(a) such information specified in Schedule 4 (prior general information for framework contracts) as is relevant to the service provided;

(b) all charges payable by the payment service user to the account information service provider and, where applicable, a breakdown of those charges.

Information on ATM withdrawal charges

61

A provider of cash withdrawal services falling within paragraph 2(o) of Schedule 1 must ensure that a customer using such services is provided with information on withdrawal charges falling within regulations 43 (information required prior to the conclusion of a single payment service contract), 45 (information required after receipt of the payment order), 46 (information for the payee after execution) and 57 (currency and currency conversion), before the withdrawal and on receipt of the cash.

Provision of information leaflet

62

(A1) The FCA must—

(a) produce a user-friendly electronic document listing in a clear and easily comprehensible manner the rights of consumers under these Regulations,

(b) make the document available in an easily accessible manner on its website, and

(1) A payment service provider must make available free of charge in an easily accessible manner the document produced by the FCA under paragraph (A1)—

(a) in electronic form on its website (if any);

(b) in paper form at any branches and through any agent it uses or any entity to which activities are outsourced.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Payment service providers and the FCA must also make the information contained in the document available by alternative means or in alternative formats so as to be accessible to persons with disabilities.

PART 7 — Rights and Obligations in Relation to the Provision of Payment Services

Application

Application of Part 7

63

(1) This Part applies to payment services where—

(a) the services are provided from an establishment maintained by a payment service provider or its agent in the United Kingdom; and

(b) the services are provided in one of the following circumstances—

(i) the payment service providers of both the payer and the payee are located within the United Kingdom and the service relates to a transaction in sterling;

(ia) the payment service providers of both the payer and the payee are located within the qualifying area and the service relates to a transaction in euro executed under a payment scheme which operates across the qualifying area;

(ii) the payment service providers of both the payer and the payee are located within the United Kingdom and the service relates to a transaction in a currency other than sterling or euro; or

(iii) the payment service provider of either the payer or the payee, but not both, is located within the United Kingdom and the case does not fall within paragraph (ia).

(1A) In paragraph (1)(b)(ia)—

(a) “payment service provider” includes any person who is a PSP as defined in Article 2(8B) of the SEPA regulation;

(b) “the qualifying area” means the area of the United Kingdom and the EEA States.

(2) In the circumstances mentioned at paragraph (1)(b)(ii)—

(a) this Part applies only in respect of those parts of a transaction which are carried out in the United Kingdom; and

(b) regulations 84 to 88 (amounts transferred and received and execution time) do not apply.

(3) In the circumstances mentioned at paragraph (1)(b)(iii)—

(a) this Part applies only in respect of those parts of a transaction which are carried out in the United Kingdom; and

(b) regulations 66(2) (responsibility for charges), 79 (refunds for direct debits), 80 (requests for direct debit refunds), 84 (amounts transferred and received), 86(1) to (3) (execution time for transactions to a payment account), 91 (defective execution of payer-initiated transactions), 92 (defective execution of payee-initiated transactions), 94 (liability for charges and interest) and 95 (right of recourse) do not apply.

(4) This Part does not apply to registered account information service providers ..., except for regulations 70 (access to payment accounts for account information services), 71(7) to (10) (denial of access to payment accounts), 72(3) (payment service user's obligation to keep personalised security credentials safe) and 98 to 100 (risk management, incident reporting, authentication and dispute resolution).

(5) Where the payment service user is not a consumer, a micro-enterprise or a charity, the payment service user and the payment service provider may agree that—

(a) any or all of regulations 66(1) (charges), 67(3) and (4) (withdrawal of consent), 75 (evidence on authentication and execution), 77 (payer or payee's liability for unauthorised transactions), 79 (refunds for direct debits), 80 (requests for direct debit refunds), 83 (revocation of a payment order), 86(2A) to (2D) (payment transactions to a payment account), 91 (defective execution of payer-initiated transactions), 92 (defective execution of payee-initiated transactions) , 94 (liability for charges and interest) and 94A (liability for charges and interest as a consequence of delay under regulation 86(2B)) do not apply;

(b) a different time period applies for the purposes of regulation 74(1) (notification of unauthorised or incorrectly executed payment transactions).

Application of this Part in the case of consumer credit agreements

64

(1) This regulation applies where a payment service is provided in relation to payment transactions that consist of the placing, transferring or withdrawal of funds covered by a credit line provided under a regulated agreement.

(2) Regulation 71(2) to (5) (limits on the use of payment instruments) do not apply where section 98A(4) of the Consumer Credit Act 1974 (termination etc of open-end consumer credit agreements) applies.

(3) Regulations 76(1) to (4) and 77(1) to (5) (rectification of and liability for unauthorised transactions), and regulation 74 (notification and rectification of unauthorised or incorrectly executed payment transactions) as it applies in relation to regulation 76, do not apply.

(4) Regulations 76(5) and 77(6) apply as if—

(a) in regulation 76(5), the references to an unauthorised payment transaction were to a payment transaction initiated by use of a credit facility in the circumstances described in section 83(1) of the Consumer Credit Act 1974 (liability for misuse of credit facilities);

(b) the references to complying with regulation 76(1) were to compensating the payer for loss arising as described in section 83(1) of the Consumer Credit Act 1974.

Disapplication of certain regulations in the case of low value payment instruments

65

(1) This regulation applies in respect of payment instruments which, under the framework contract governing their use—

(a) can be used only to execute individual payment transactions of 30 euros or less, or in relation to payment transactions executed wholly within the United Kingdom, 60 euros or less;

(b) have a spending limit of 150 euros, or where payment transactions must be executed wholly within the United Kingdom, 300 euros; or

(2) Where this regulation applies the parties may agree that—

(a) regulations 72(1)(b) (obligation to notify loss or misuse of instrument), 73(1)(c), (d) and (e) (means of notifying loss) and 77(4) (payer not liable for certain losses) do not apply where the payment instrument does not allow for the stopping or prevention of its use;

(b) regulations 75 (evidence on authentication and execution), 76 (payment service provider's liability for unauthorised transactions) and 77(1) and (2) (payer's liability for unauthorised transactions) do not apply where the payment instrument is used anonymously or the payment service provider is not in a position, for other reasons concerning the payment instrument, to prove that a payment transaction was authorised;

(c) despite regulation 82(1) (refusal of payment orders), the payment service provider is not required to notify the payment service user of the refusal of a payment order if the non-execution is apparent from the context;

(d) the payer may not revoke the payment order under regulation 83 after transmitting the payment order or giving their consent to execute the payment transaction to the payee;

(e) execution periods other than those provided by regulations 86 (payment transactions to payment account) and 87 (absence of payment account) apply.

(3) Subject to paragraph (2)(b), regulations 76 (payment service provider's liability for unauthorised transactions) and 77(1) and (2) (payer's liability for unauthorised transactions) apply to electronic money unless the payer's payment service provider does not have the ability under the contract to—

(a) freeze the payment account on which the electronic money is stored; or

(b) stop the use of the payment instrument.

Charges

66

(1) The payment service provider may only charge the payment service user for the fulfilment of any of its obligations under this Part—

(a) in accordance with regulation 82(3) (refusal of payment orders), 83(6) (revocation of a payment order) or 90(2)(b) (incorrect unique identifiers);

(b) where agreed between the parties; and

(2) Where both the payer's and the payee's payment service providers, or the only payment service provider, in respect of a payment transaction are within the United Kingdom, the respective payment service providers must ensure that—

(a) the payee pays any charges levied by the payee's payment service provider; and

(b) the payer pays any charges levied by the payer's payment service provider.

(2A) Where, in respect of payment transaction in euro executed under a payment scheme which operates across the qualifying area, both the payer's and the payee's payment service providers are, or the only payment service provider is, in the United Kingdom the respective payment service providers must ensure that—

(a) the payee pays any charges levied by the payee's payment service provider; and

(b) the payer pays any charges levied by the payer's payment service provider.

(3) The payee's payment service provider may not prevent the payee from—

(a) requesting payment of a charge by the payer for the use of a particular payment instrument;

(b) offering a reduction to the payer for the use of a particular payment instrument; or

(4) In paragraph (2A)—

(a) “payment service provider” includes any person who is a PSP as defined in Article 2(8B) of the SEPA regulation;

(b) “the qualifying area” means the area of the United Kingdom and the EEA States.

Authorisation of payment transactions

67

(1) A payment transaction is to be regarded as having been authorised by the payer for the purposes of this Part only if the payer has given its consent to—

(a) the execution of the payment transaction; or

(b) the execution of a series of payment transactions of which that payment transaction forms part.

(2) Such consent—

(a) may be given before or, if agreed between the payer and its payment service provider, after the execution of the payment transaction;

(b) must be given in the form, and in accordance with the procedure, agreed between the payer and its payment service provider; and

(3) The payer may withdraw its consent to a payment transaction at any time before the point at which the payment order can no longer be revoked under regulation 83 (revocation of a payment order).

(4) Subject to regulation 83(3) to (5), the payer may withdraw its consent to the execution of a series of payment transactions at any time with the effect that any future payment transactions are not regarded as authorised for the purposes of this Part.

Confirmation of availability of funds for card-based payment transactions

68

(1) This regulation does not apply to payment transactions initiated through card-based payment instruments on which electronic money is stored.

(2) Where the conditions in paragraph (3) are met, a payment service provider which issues card-based payment instruments may request that an account servicing payment service provider confirm whether an amount necessary for the execution of a card-based payment transaction is available on the payment account of the payer.

(3) The conditions are that—

(a) the payer has given explicit consent to the payment service provider to request the confirmation;

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

(c) the payment service provider making the request complies, for each request, with the authentication and secure communication requirements set out in the technical standards made under regulation 106A in its communications with the account servicing payment service provider.

(4) If the conditions in paragraph (5) are met, an account servicing payment service provider which receives a request under paragraph (2) must provide the requested confirmation, in the form of a ‘yes’ or ‘no’ answer, to the requesting payment service provider immediately.

(5) The conditions are that—

(a) the payment account is accessible online when the account servicing payment service provider receives the request; and

(b) before the account servicing payment service provider receives the first request under paragraph (2) from the requesting payment service provider in relation to the payer's payment account, the payer has given the account servicing payment service provider explicit consent to provide confirmation in response to such requests by that payment service provider.

(6) If the payer so requests, the account servicing payment service provider must also inform the payer of the payment service provider which made the request under paragraph (2) and the answer provided under paragraph (4).

(7) An account servicing payment service provider must not—

(a) include with a confirmation provided under paragraph (4) a statement of the account balance; or

(b) block funds on a payer's payment account as a result of a request under paragraph (2).

(8) The payment service provider which makes a request under paragraph (2) must not—

(a) store any confirmation received under paragraph (4); or

(b) use the confirmation received for a purpose other than the execution of the card-based payment transaction for which the request was made.

Access to payment accounts for payment initiation services

69

(1) This regulation applies only in relation to a payment account which is accessible online.

(2) Where a payer gives explicit consent in accordance with regulation 67 (consent and withdrawal of consent) for a payment to be executed through a payment initiation service provider, the payer's account servicing payment service provider must—

(a) communicate securely with the payment initiation service provider in accordance with the technical standards made under regulation 106A;

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

(c) treat the payment order in the same way as a payment order received directly from the payer, in particular in terms of timing, priority or charges, unless the account servicing payment service provider has objective reasons for treating the payment order differently;

(d) not require the payment initiation service provider to enter into a contract before complying with the preceding sub-paragraphs.

(3) A payment initiation service provider must—

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

(b) ensure that a payer's personalised security credentials are—

(i) not accessible to other parties, with the exception of the issuer of the credentials; and

(ii) transmitted through safe and efficient channels;

(c) ensure that any other information about a payer is not provided to any person except a payee, and is provided to the payee only with the payer's explicit consent;

(d) each time it initiates a payment order, identify itself to the account servicing payment service provider and communicate with the account servicing payment service provider, the payer and the payee in a secure way in accordance with the technical standards made under regulation 106A;

(e) not store sensitive payment data of the payment service user;

(f) not request any information from a payer except information required to provide the payment initiation service;

(g) not use, access or store any information for any purpose except for the provision of a payment initiation service explicitly requested by a payer;

(h) not change the amount, the payee or any other feature of a transaction notified to it by the payer.

Access to payment accounts for account information services

70

(1) This regulation applies only in relation to a payment account which is accessible online.

(2) Where a payment service user uses an account information service, the payment service user's account servicing payment service provider must—

(a) communicate securely with the account information service provider in accordance with the technical standards made under regulation 106A;

(b) treat a data request from the account information service provider in the same way as a data request received directly from the payer, unless the account servicing payment service provider has objective reasons for treating the request differently;

(c) not require the account information service provider to enter into a contract before complying with the preceding sub-paragraphs.

(3) An account information service provider must—

(a) not provide account information services without the payment service user's explicit consent;

(b) ensure that the payment service user's personalised security credentials are—

(i) not accessible to other parties, with the exception of the issuer of the credentials; and

(ii) transmitted through safe and efficient channels;

(c) for each communication session, identify itself to the account servicing payment service provider and communicate securely with the account servicing payment service provider and the payment service user in accordance with the technical standards made under regulation 106A;

(d) not access any information other than information from designated payment accounts and associated payment transactions;

(e) not request sensitive payment data linked to the payment accounts accessed;

(f) not use, access or store any information for any purpose except for the provision of the account information service explicitly requested by the payment service user.

Limits on the use of payment instruments and access to payment accounts

71

(1) Where a specific payment instrument is used for the purpose of giving consent to the execution of a payment transaction, the payer and its payment service provider may agree on spending limits for any payment transactions executed through that payment instrument.

(2) A framework contract may provide for the payment service provider to have the right to stop the use of a payment instrument on reasonable grounds relating to—

(a) the security of the payment instrument;

(b) the suspected unauthorised or fraudulent use of the payment instrument; or

(c) in the case of a payment instrument with a credit line, a significantly increased risk that the payer may be unable to fulfil its liability to pay.

(3) The payment service provider must, in the manner agreed between the payment service provider and the payer and before carrying out any measures to stop the use of the payment instrument—

(a) inform the payer that it intends to stop the use of the payment instrument; and

(b) give its reasons for doing so.

(4) Where the payment service provider is unable to inform the payer in accordance with paragraph (3) before carrying out any measures to stop the use of the payment instrument, it must do so immediately after.

(5) Paragraphs (3) and (4) do not apply where provision of the information in accordance with paragraph (3) would compromise reasonable security measures or is otherwise unlawful.

(6) The payment service provider must allow the use of the payment instrument or replace it with a new payment instrument as soon as practicable after the reasons for stopping its use cease to exist.

(7) An account servicing payment service provider may deny an account information service provider or a payment initiation service provider access to a payment account for reasonably justified and duly evidenced reasons relating to unauthorised or fraudulent access to the payment account by that account information service provider or payment initiation service provider, including the unauthorised or fraudulent initiation of a payment transaction.

(8) If an account servicing payment service provider denies access to a payment account under paragraph (7)—

(a) the account servicing payment service provider must notify the payment service user of the denial of access and the reason for the denial of access, in the form agreed with the payment service user;

(b) the notification under sub-paragraph (a) must be provided before the denial of access if possible, or otherwise immediately after the denial of access;

(c) the account servicing payment service provider must immediately report the incident to the FCA in such form as the FCA may direct, and such report must include the details of the case and the reasons for taking action;

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