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Payment Services Directive 2

The revised Payments Services Directive (PSD2), which came into effect on the 13th January 2018, is a revised version of the Payment Services Directive 1 (PSD1) that came into effect across the European Union on the 1st November 2009.

PSD2 aims to bring about increased competition, greater transparency and security across the European payments landscape. PSD2 is designed to make payments safer, increase consumer protection, foster innovation and competition while ensuring a level playing field for all players, including those payment service providers which are not being regulated under the previous PSD1 regime.

The Payment Services Directive generates more competition in the European payment markets by removing market entry barriers and guaranteeing fair market access.  It also provides a simplified and fully harmonised set of rules with regards to the information requirements and the rights and obligations linked to the provision and use of payment services.


The significant changes brought about by the Payment Services Directive (PSD2) are:-

  1. The extension of sharing of charges when making payments in non - EEA (non-European Economic Area) currencies within the EEA.  With regards to Bank transfers where both the payer and the payee are located in the EEA country, the shared charges are applied in all currencies.  The payer pays the charges levied by his/her bank while the payee pays the fees charged by his/her bank.  For these types of payments while the ‘BEN' option is no longer allowed, the ‘OUR’ option is available on the specific request of the payer who has full transparency on costs associated with the payment transaction.
  2. A refund for unauthorised transactions will be processed by the end of the following business day, unless the transaction is related to fraud or gross negligence.
  3. Complaints under the PSD2 will be handled within 15 business days, however this may be extended to 35 business days when the information required is not within the Bank's control.

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