The European Parliament has adopted the European Commission's revised Payment Services Directive (PSD2), paving the way for safer and more efficient payments across Europe.
- provide better protection for consumers when making payments;
- promote the development and use of innovative online and mobile payments; and
- improve security in European payment services.
The directive is part of a series of measures recently adopted by the EU as part of its strategy to provide better services and security for consumers and business in Europe. According to Financial Markets Commissioner Jonathan Hill, it is a step towards a digital single market for the EU.
As soon as the directive is published in the Official Journal of the EU (in the near future), EU countries will have two years to comply with the new rules.
Some of the changes that the new rules introduce are:
- introduction of strict security requirements for the initiation and processing of electronic payments and the protection of consumers' financial data;
- opening the EU payment market for companies offering consumer or business-oriented payment services based on the access to information about the payment account – the so called "payment initiation services providers" and "account information services providers";
- enhancing consumers’ rights in numerous areas, including reducing the liability for non-authorised payments, introducing an unconditional ("no questions asked") refund right for direct debits in euro; and
- prohibition of surcharging (additional charges for the right to pay e.g. with a card) whether the payment instrument is used in shops or online.
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