What is PSD2?

PSD2 is the second European Payment Services Directive (PSD). It replaces the first Payment Services Directive which was implemented into UK law in 2009 which introduced (amongst other things):

  • A legal framework for all payment service providers to operate within
  • Information customers needed to be given about payments
  • Increased consumer protection and transparency
  • Increased customer rights
  • Faster payments (no later than next working day for EEA payments in an EEA currency)
  • Rights for refunds

PSD2 will become law in the UK on 13 January 2018 via the UK’s new Payment Service Regulations (PSR) which will replace existing Payment Services Regulations of 2009.

PSD2 is part of the European Commission’s continuing drive to create an efficient and integrated market for payment services.  

What are the aims of PSD2?

PSD2 aims to increase competition in the payments market place, leading to new services and lower costs for payment transactions.  To also provide standardisation and improvements in payment account services, examples are:

  • Improvements in payment transaction processing.
  • Faster handling of payment service related complaints.
  • Extension of the law to payments made outside of the EEA.

To accommodate PSD2 changes, we have updated the Terms and Conditions across our product range.

Yes. All banks and building societies have to comply with the regulations that came into effect on 13 January 2018.

Following a European wide review of payment processes, new regulations were introduced on 1 January 2012 that all banks and building societies must ensure that any payments they make on their customers behalf arrive at the destination bank or building society no later than the end of the next working day. Payments sent from customers accounts using the Bankers Automated Clearing System (BACS); are no longer permitted as the 3 day BACS cycle does not comply with these regulations.

My Payments

For limits and timescales please view our Faster Payments page.

For limits and timescales please view our Faster Payments page.

You will not be able to request a transaction to a non Faster Payments and CHAPS reachable sort code.

Your funds will normally reach your account by the end of the next working day following your instruction (subject to cut off times). 

In order to meet the timescales required for the Payment Service Regulations, we can only send payments using Faster Payments.

The financial services industry is working to ensure that all sort codes that operate as Payment Accounts can receive Faster Payments.

However, if the sort code cannot receive Faster Payments, Nationwide cannot make payments to these accounts as we would be in breach of regulations.