Transcript EP position in more detail (2)

PSD 2
Proposal for a revised Directive on payment services
State of play
Payment Systems Market Expert Group
11 April 2014
Silvia Kersemakers, 11 April 2014
Where are we in the process of adoption?
European Parliament
Responsible committee : ECON - rapporteur : Diogo Feio (EPP-PT)
- ECON report adopted on 20 February 2014
- JURI opinion adopted on 17 December 2013
Council:
- EP Plenary vote on ECON report on 3 April 2014
Council
Discussions started under Greek Presidency
1st Council Working Party (CWP): 26 Feb (both PSD2 and IF-Reg)
2nd CWP: 25 March (only PSD2)
3rd CWP: 28 April (only PSD2)
EP position – main elements
• EP broadly endorses the key features of COM proposal:
• Extension of scope(of Title III) to one leg transactions and all
currencies
• Inclusion of third party payment services providers
• Enhancement of secure payments
• Greater involvement of EBA
Some amendments go further from a consumer perspective
08/04/2015
EP position in more detail (1)
Positive scope
• EP supports COM proposal that extension of scope to
one leg transactions only concerns Title III provisions
(for now), but also
• proposes to introduce review clause allowing to consider further
extension to other provisions of PSD2 at a later stage.
08/04/2015
EP position in more detail (2)
Negative scope
• EP largely supports the proposed narrowing of negative
scope, and takes it in some cases even one step
further:
• Lowering thresholds for low value payments through telecom operators
- from EUR 50 to EUR 20 per transaction and from EUR 200 to EUR 100
per billing month
• Specific exemption for donations to authorised charities
• Specific exemption for limited networks in context of social benefits or
taxes
08/04/2015
EP position in more detail (3)
TPPs
• EP supports inclusion of TPPs in scope and adds
provisions aiming to ensure the right legal and
technical framework in which these new players can
operate:
• Development of common and secure open standards of
communication by EBA for the authentication of TPPs vis-à-vis
the account holding bank (ASPSP) and for the communication
between the TPP and the bank on availability of funds
• Communication on availability of funds should consist in simple
"Yes" or "No"
• No contract between TPP and AS PSP to be required (Art. 58)
• Proof of consent of payer to TPP always in express manner
08/04/2015
EP position in more detail (4)
Refund right in case of direct debits (DD)
• EP goes further by introducing an unconditional refund
right in case of DD, along the lines of the SEPA
Rulebook
• This approach may be problematic in some cases of Fixed Amount DD
schemes, such as lotteries.
• Task Force established by SEPA Council to identify problematic areas
• Further fine-tuning to be considered
08/04/2015
EP position in more detail (5)
Surcharges
Scope of the prohibition on surcharges further
expanded by inclusion of commercial cards under the
cap regime of the Interchange fee Regulation.
• However, EP retains option for Member States to ban
surcharging all together, including for the use of noncapped cards
• Further negotiations on PSD2 and IF Reg to be closely followed
to ensure that in the end a proper balance is struck
08/04/2015
EP position in more detail (6)
Access to payment accounts (Article 17(2) PSD2)
EP supports COM proposal to better ensure fair access
to payment accounts for payment institutions to
provide their payment services; EP further clarifies the
terms and conditions to guarantee such fair access
08/04/2015
EP position in more detail (7)
Roles of the EBA
EP expands mandates of EBA to also cover:
• development of common standard for interface between TPPs and AS
PSPs
• Regulatory Technical standards on the information to be provided in
application for authorisation
• guidelines on concept of "gross negligence"
• Implementing Technical Standards in context of implementation of
security measures
• Guidelines on notification of security incidents, sanctions, complaints
procedure
• binding mediation in settling disputes between competent authorities
08/04/2015
Council negotiations
First two CWP (Feb and March) concentrated on:
• Scope (Articles 2 and 3)
• Prudential requirements (Articles 5-8, 10-14)
• Safeguarding (Article 9)
• Use of agents for cross-border activities and issues of supervision
and monitoring (Articles 18 and 26)
• Access to payment systems (Article 29)
• Refund right (Article 67)
Currently, possible technical solutions for the interaction between TPPs and
AS PSPs analysed. Therefore, provisions on TPPs to be discussed at later
stage
• Greek Presidency: in best case adoption of general
approach in June
• 08/04/2015