Payment services: Consumers to benefit from cheaper, safer and more innovative electronic payments
The revised Payment Services Directive (PSD2), which will apply as of 13 January 2018, aims to modernise Europe’s payment services to the benefit of both consumers and businesses, so as to keep pace with this rapidly evolving market.
Valdis Dombrovskis, Vice-President responsible for Financial Stability, Financial Services and Capital Markets Union said. “This legislation is another step towards a digital single market in the EU. It will promote the development of innovative online and mobile payments, which will benefit the economy and growth. With PSD2 becoming applicable, we are banning surcharges for consumer debit and credit card payments. This could save more than €550 million per year for EU consumers. Consumers will also be better protected when they make payments.”
The new rules will:
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Prohibit surcharging, which are additional charges for payments with consumer credit or debit cards, both in shops or online;
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Open the EU payment market to companies offering payment services, based on them gaining access to information about the payment account;
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Introduce strict security requirements for electronic payments and for the protection of consumers’ financial data;
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Enhance consumers’ rights in numerous areas. These include reducing the liability for non-authorised payments and introducing an unconditional (“no questions asked”) refund right for direct debits in euro.
These rules will be applicable as of 13 January 2018 through provisions that Member States have introduced in their national laws in compliance with the EU legislation. The Commission calls on Member States who have not yet transposed the Directive, to do so as a matter of urgency.
Background
The revised Payment Services Directive (PSD2, Directive 2015/2366/EU), proposed by the European Commission in July 2013 and agreed by co-legislators in 2015, is the latest in a series of laws adopted by the EU in order to provide for modern, efficient and cheap payment services and to enhance protection for European consumers and businesses.
It incorporates and repeals Directive 2007/64/EC (Payment Services Directive, or PSD1), which provided the legal basis for the creation of an EU-wide single market for payment services. The revised Directive adapts the rules to cater for emerging and innovative payment services, including internet and mobile payments, while at the same time ensuring a more secure environment for consumers.
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