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Saturday, 20 September 2014

PSD2, The Saga Continues - Updated

The European Council issued its revised proposal for PSD2in September 2014.

The Society for Computers and Law has kindly published an update to my earlier article on PSD2 to reflect the revised proposal.

Possibly the key issues relate to:
  • limiting the technology service providers exemption to those who supply their services to payment service providers, rather than users - for example, this would no longer seem to apply to 'gateway' data services supplied to merchants/retailers, as opposed to acquirers;
  • the distinctions between technology services, on the one hand, and services involving payment initiation, account access, bill payment and acquiring;
  • the inconsistent treatment of bill payment services, e-commerce marketplaces and the suppliers of public communications networks (telcos);
  • the notification requirements for large store card, gift card and loyalty programmes and other 'limited network' payment schemes;
  • the requirement for payment service providers to release to payers the names of payees who refuse to surrender funds that have been paid to them by mistake;
  • host state reporting for cross-border service providers, in addition to home state reporting;
  • prescriptive security provisions affecting different types of payment service provider, which must meet (as yet unpublished) standards issued by the European Banking Authority;
  • e-money institutions having to provide fresh evidence that they meet the threshold conditions for authorisation.
Interested in hearing your thoughts, either here or via the SCL site.