As part of the digital finance package, on 28 June 2023 the European Commission also proposed a third revision of the Payments Services Directive and a Payments Services Regulation. Among the several aspect covered, these will: combat and mitigate payment fraud, by enabling payment service providers to share fraud-related information between themselves, increasing consumers’ awareness, strengthening customer authentication rules, extending refund rights of consumers who fall victim to fraud and making a system for checking alignment of payees’ IBAN numbers with their account names mandatory for all credit transfers. Moreover, improve consumer rights, in cases for example where their funds are temporarily blocked, improve transparency on their account statements and provide more transparent information on ATM charges.
Further levelling the playing field between banks and non-banks, in particular by allowing non-bank payment service providers access to all EU payment systems, with appropriate safeguards, and securing those providers’ rights to a bank account. Improve the functioning of open banking, by removing remaining obstacles to providing open banking services and improving customers’ control over their payment data, enabling new innovative services to enter the market. Improve the availability of cash in shops and via ATMs, by allowing retailers to provide cash services to customers without requiring a purchase and clarifying the rules for independent ATM operators. Strengthen harmonisation and enforcement, by enacting most payment rules in a directly applicable regulation and reinforcing provisions on implementation and penalties. Legal provisions relating to digital payments included in the regulations mentioned above might be of direct relevance to the FAME platform.
Legal basis for PSD3 and PSR Directive
Both the Payment Service Regulation and the Directive apply to Payment service providers (PSPS) operating in theEuropean Economic Area (EEA), including:
- Credit institutions.
- Payment institutions.
- Post office giro institutions.
- the ECB and national central banks when not acting in their capacity as monetary authority or other public authorities.
- Member States or their regional or local authorities when not acting in their capacity as public authorities.
- Third-party providers (TPPs) that access customer account data or initiate payments on behalf of users.
- New entrants and FinTechs offering payment-related services under EU jurisdiction.
Key Definitions
- Payment service; any business included in Annex I of PSD3 and PSR.
- Payment institution; a legal person that has been granted authorisation to provide payment services or electronic money services throughout the Union.
- Payment transaction; an act of placing, transferring, or withdrawing funds, based on a payment order placed by the payer, or on his behalf, or by the payee, or on his behalf, irrespective of any underlying obligations between the payer and the payee.
- Payer; a natural or legal person who holds a payment account and places a payment order from that payment account, or, where there is no payment account, a person who places a payment order.
- Payee; a natural or legal person who is the intended recipient of funds which are the subject of a payment transaction.
- Payment service provider; a body as referred to in Article 2(1) of PSD3 or a natural or legal person benefiting from an exemption pursuant to Articles 34, 36 and 38 of PSD3.
- Electronic money services; means the issuance of electronic money, the maintenance of payment accounts storing electronic money units, and the transfer of electronic money units.