PSD2:
The new “Payment service directive” (PSD2), which entered into force on 13 January 2018, represents a new set of European rules to ensure that the new technological innovations in relation to payment transactions become possible and that they remain safe for the consumers.
PSD2 is a broad-reaching piece of legislation and aims at bringing increased competition, greater transparency and security across the European payments landscape.
The key areas of change are as follows:
- Expand the scope of payments to include non-EEA currencies for payments within the EEA;
- Mandate the use of SHA charging for all payments within the EEA, irrespective of the currency of the payment;
- Standardisation of Complaint handling;
- Set minimum standards of Strong Customer Authentication (SCA) for payments and online banking services;
- Introduction of third party providers such as Payment Initiation Service Providers (PISPs) and/or Account Information Service Providers (AISPs) to pave the way for Open Banking.
Capturing a broader scope of payments
One of the fundamental changes is the increased scope in payments. Previously, PSD1 only regulated payments within the EEA and in member state currencies (e.g. GBP, EUR, PLN, etc.). This changed with PSD2 to cover all payments regardless of currency, both, within the EEA and to/from EEA countries from/to non-EEA countries.
How complaints are handled
There is a PSD2 requirement to harmonise how complaints are processed and managed:
PSD2 related complaints must be dealt with within a maximum timeframe of 15 business days In exceptional circumstances, this may be extended to 35 business days.
Third Party Access and Open Banking
PSD2 regulation created two new regulated entities, namely, Payment Initiation Service Providers (PISPs) and Account Information Service Providers (AISPs), also known as Third Party Providers (TPPs). Payment initiation and account information services provided through a TPP is commonly referred to as Open Banking.
To go further:
- Your rights in a nutshell:
https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/leaflet-your-rights-payments-eu_en.pdf