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SEPA Legal Framework (Payment Services Directive)

SEPA Legal Framework (Payment Services Directive)
On 1st November 2009 the Payment Services Directive (PSD) was transposed into legislation in Ireland and throughout the EU. This Directive ensures that the same legal framework applies to all payments made within Europe whereby businesses and consumers can make payments easily, cost-effectively and efficiently. The PSD establishes the necessary legal framework for SEPA payments and also applies to existing national payment products. The PSD was transposed into Irish legislation as the European Communities (Payment Services) Regulations 2009.

Read more:

• Irish legislation
• EU Directive
  

What are the benefits of the PSD?

Customers (Payment Service Users or PSUs) in general will benefit from more harmonised customer protection and minimum service levels. For example, provisions of the PSD detail the rights and obligations of Payment Service Providers (PSPs/banks) vis-à-vis customers, specify full transparency of conditions, stipulate improved information to be provided to customers and require shortened execution time for payments.

Payment Service Providers (PSPs) will benefit from the creation of a uniform legal framework across the EU/EEA area and a level playing field. The new legal framework supports the SEPA payment instruments, particularly the SEPA Direct Debit Scheme and removes barriers of entry into new markets within the EU/EEA.

The PSD also provides clear rules for a new category of PSP, established by the Directive called Payment Institutions (PIs).