The Payment Services Directive (PSD) is a payment regulation system that is governed by the European Commission (Directorate General Internal Market) aimed at contributing to the development of a single payment market in the European Union to promote innovation, competition, and efficiency in the EU.

Does PSD2 apply to EEA?

Extended coverage PSD2 will cover both intra-EEA (European Economic Area) payments, as well as ‘One Leg Out’ payments – such as when the beneficiary or originator is located outside the EEA. Its main objective was to make cross-border payments as easy, inexpensive and secure as domestic payments.

Who is PSD2 applicable to?

PSD2 will set out a common legal framework for businesses and consumers when making and receiving payments within the European Economic Area (EEA) – which comprises the 28 European Union Member States plus Norway, Iceland and Liechtenstein – and outside the EEA.

What is payment services regulation?

The Payment Services Regulations It brings the European payments law, known as the second Payment Services Directive – or PSD2 – into UK law. The Regulations also outline what consumers can expect their bank to do if there has been unauthorised use of their account details or their debit cards.

What does a payment service provider do?

Payment service providers – also known as merchant service providers or PSPs – are third parties that help merchants accept payments. Simply put, payment service providers enable merchants to accept credit/debit payments (as well as Direct Debit, bank transfer, real-time bank transfer, etc.)

Does PSD2 apply to UK after Brexit?

One train of thought from certain authorities is that all PSD2 certificates issued to UK entities should be revoked, and no new certificates should be issued to entities authorized by the FCA (Financial Conduct Authority – the UK National Competent Authority (NCA). …

Does PSD2 apply to debit cards?

PSD2 prohibits surcharging, which is additional charges for payments with consumer credit or debit cards, both in shops or online.

Is sofort a PISP?

Instead the SCT is initiated by Sofort acting as payment initiation service provider (PISP) under PSD2.

What is the difference between PSD2 and open banking?

Open Banking also part of a sweeping piece of European legislation known as the second Payment Services Directive, or PSD2. The difference is that whereas PSD2 requires banks to open up their data to third parties, Open Banking dictates that they do so in a standard format.

Who are authorised payment providers in the UK?

Any UK bank, e-money institution or authorised payment institution can apply for permission from the FCA to be able to offer these services. Providers of these services (AISPs and PISPs) will access their customers’ accounts held with other payment service providers, but always with the customers’ consent.

How does the European Commission help payment services?

The European Commission is working to create an efficient and integrated market for payment services in the EU. An efficient market for payment services in Europe should guarantee: The EU is aiming to create a single payment area which lets citizens and businesses make cross-border payments as easily and safely as they would in their own countries

Is there a payment regulation in the EU?

Much of the PSD2 regulation has, therefore, already been trialled and anticipated by the payments industry. “Like PSD1, the second iteration regulates virtually all payment services within the EU including debiting and crediting of payment accounts, money transmittal and card issuing and acquiring.

Who are the regulated payment institutions in the UK?

The businesses mentioned above are not banks, but are authorised or registered either as payment institutions (PIs) or e-money institutions (EMIs) by the UK’s financial services regulator, the Financial Conduct Authority (FCA).