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.