Changes from plenary report to adopted text

Removed(15a) In order to make progress towards further harmonisation of industry practices to comply with Union and other applicable sanctions obligations throughout the Union, EBA and AMLA should prepare a joint report on potential methods for enabling PSPs that execute instant credit transfers to verify whether any of their PSUs are persons or entities designated on Union lists or national lists of Member States.

Removed(16) Failure of one PSP to carry out timely verifications of its PSUs could result in a failure of the other PSP involved in carrying out the same instant credit transfer transaction to freeze funds of a listed person or entity or not to make funds or economic resources available to such person or entity. PSPs that incur penalties for non-compliance with their obligations stemming from Union sanctions due to the failure of another PSP to carry out timely verifications of its PSUs should be compensated for those penalties by that PSP.

Removed(17) The infringements of this Regulation should be subject to penalties, imposed by the competent authorities of the Member States. Such penalties should be effective, proportionate and dissuasive. To facilitate the mutual trust of PSPs and the relevant competent authorities in the uniform and thorough implementation of a harmonised approach to compliance with PSP obligations stemming from Union sanctions, it is in particular appropriate to harmonise across the Union the minimum levels for penalties for the infringement by PSPs of their obligations to verify whether their PSUs are listed persons or entities.

Removed(18) PSPs need sufficient time to meet the obligations laid down in this Regulation. It is therefore appropriate to introduce those obligations gradually, allowing PSPs a more efficient use of their resources. The obligation to offer the service of sending instant credit transfers should therefore apply later, preceded by the obligation to offer the service of receiving instant credit transfers, since the sending of instant credit transfers tends to be more costly and complex of the two services to implement and therefore necessitates more time. The service of notifying detected discrepancies between the name and payment account identifier of the payee to the payer is only relevant for PSPs offering the service of sending instant credit transfers. The obligation to offer that service should therefore apply from the same time as the obligation to offer the service of sending instant credit transfers. The obligations related to charges and harmonised procedure to ensure compliance with obligations stemming from Union sanctions should apply as soon as PSPs are obliged to offer the service of receiving instant credit transfers. To allow PSPs located in Member States whose currency is not the euro to efficiently allocate the resources needed for the implementation of instant credit transfers in euro, the obligations laid down in this Regulation should apply to such PSPs as of a later date than to PSPs located in Member States whose currency is the euro with the same gradual approach for introducing various obligations as for PSPs located in the euro area.

Removed(19) Under Article 3 of Regulation (EU) 2021/1230 of the European Parliament and of the Council, charges applied by a PSP located in a Member State whose currency is not the euro in respect of cross-border credit transfers in euro are to be the same as charges applied by that PSP in respect of national credit transfers in the national currency of that Member State. In situations where such a PSP applies higher charges for national instant credit transfers in the national currency than for national non-instant credit transfers in the national currency, and therefore also higher charges than for cross-border non-instant credit transfers in euro, the level of charges that such a PSP would be required to apply under Article 3 of Regulation (EU) 2021/1230 in respect of cross-border instant credit transfers in euro would be higher than charges for cross-border non-instant credit transfers in euro. In such situations, to avoid conflicting requirements and taking into account the key objective of steering PSUs towards instant credit transfers in euro, it is appropriate to require that charges applied to payers and payees for cross-border instant credit transfers in euro do not exceed the charges applied for cross-border non-instant credit transfers in euro.

Removed(20) Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and 2014/92/EU should therefore be amended accordingly.

Removed(21) Any processing of personal data in the context of providing instant credit transfers, or the service detecting and notifying discrepancies between the name and payment account identifier of a payee, as well as verifying whether PSUs are listed persons or entities should be in line with the Regulation (EU) 2016/679 of the European Parliament and of the Council. Processing of the names and the payment account identifiers of natural persons is proportionate and necessary to prevent fraudulent transactions, detect errors and ensure the compliance with restrictive measures adopted in accordance with Article 215 TFEU providing for asset freeze or prohibition of making funds or economic resources available.

Removed(22) Since the objectives of this Regulation, namely to provide the necessary uniform rules for cross-border instant credit transfers in euro at Union level and to increase the overall uptake of instant credit transfers in euro, cannot be sufficiently achieved by Member States because they cannot impose obligations on PSPs located in other Member States, but can rather, by reason of scale, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve its objectives.

Removed(23) The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 of the European Parliament and of the Council and delivered an opinion on [XX XX 2022],

RemovedHAVE ADOPTED THIS REGULATION:

RemovedRegulation (EU) No 260/2012 is amended as follows:

Removed(1) Article 2 is amended as follows:

Removed(a) the following points (1a) to (1da) are inserted:

Removed‘(1a) ‘instant credit transfer’ means a credit transfer which meets all of the following conditions:

Removed(a) the time of receipt of the payment order for such credit transfer is the moment when the payer’s ▌PSP receives the payment order given by the PSU to execute that credit transfer, regardless of the day or hour;

Removed(b) the payment order for such credit transfer is immediately processed by the payer’s PSP, regardless of the day or hour;

Removed(c) the payee’s payment account is credited with the amount transferred within 10 seconds after the time of receipt of the payment order;

Removed(d) the credit value date for the payee’s payment account is the same date as the date on which the payee’s payment account is credited with the amount transferred;

Removed(1b) ‘PSU interface’ means a method, device or procedure through which the payer can place a paper-based or electronic payment order to its PSP for a credit transfer, including online banking, mobile banking application, automated teller machine, or▌ any other facility on the premises of the PSP;

Removed(1ba) ‘payment account’ means a payment account as defined in Article 4, point (12), of Directive (EU) 2015/2366 of the European Parliament and of the Council*;

Removed(1c) ‘payment account identifier’ means a unique identifier as defined in Article 4, point (33), of Directive (EU) 2015/2366 of the European Parliament and of the Council;

Removed(1ca) 'name of the payee’ means, in respect of a natural person, the name and surname and, in respect of a legal person, the commercial or legal name;

Removed(1d) ‘listed persons or entities’ means natural or legal persons, bodies or entities that are subject to an asset freeze or a prohibition to make funds or economic resources available to it, or for its benefit, either directly or indirectly, pursuant to restrictive measures adopted in accordance with Article 215 TFEU;

Removed(1da) ‘legal entity identifier’ or ‘LEI’ means a unique alphanumeric reference code based on the ISO 17442 standard assigned to a legal entity;

Removed________________________________________________________

Removed* Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35).’;

Removed(b) point (22) is replaced by the following:

Removed‘(22) ‘retail payment system’ means a payment system the main purpose of which is to process, clear or settle credit transfers or direct debits which are primarily of small amount, and that is not a large-value payment system;’;

Removed(2) the following Articles 5a to 5d are inserted:

Removed‘Article 5a

RemovedInstant credit transfer transactions

Removed1. PSPs that offer to their PSUs a payment service of sending and receiving credit transfers shall offer to all their PSUs a payment service of sending and receiving instant credit transfers.

RemovedThe ECB and national central banks, when not acting in their capacity as monetary authorities or other public authorities, may limit their offer to PSUs of a payment service of sending instant credit transfers in euro to the period of time during which they receive and send non-instant credit transfers in euro.

Removed1a. Where a payment order for an instant credit transfer in euro is submitted from a payment account that is not denominated in euro, the time of receipt shall be the moment when the PSP, immediately upon receiving that payment order, converts the amount of transaction from the currency in which the payment account is denominated into euro.

Removed1b. Where a package of multiple payment orders for instant credit transfers in euro has been submitted by a payer, the payer’s PSP shall upon receipt immediately begin to unpack that package. The time of receipt of an individual payment order submitted as part of a package shall be the moment when the ensuing payment transaction has been unpacked, which shall occur as soon as possible after the order has been submitted by the payer to its PSP.

Removed1c. In the case of paper-based payment orders for instant credit transfers in euro, the time of receipt of such an order shall be the moment when the payer’s PSP has transposed the payment order information into its internal system, which shall occur as soon as possible after the order has been submitted by the payer to its PSP.

Removed2. When carrying out instant credit transfers, PSPs shall, in addition to the requirements set out in Article 5, comply with the following requirements:

Removed(a) they shall ensure that payers are able to place a payment order for an instant credit transfer through all of the same PSU interfaces as the ones through which those payers can place a payment order for other credit transfers;

Removed(b) after receiving a payment order for an instant credit transfer, the payer’s PSP shall immediately verify whether all the necessary conditions for processing the payment are met and whether the necessary funds are available, reserve the amount on the account of the payer,▌ instantly send the payment transaction to the payee’s PSP, and provide, free of charge, the payer, as well as, where applicable, the intermediary payment initiation service provider, with confirmation of an executed or rejected instant credit transfer within 10 seconds of the time of receipt of the payment order;

Removed(c) they shall ensure that all payment accounts that are reachable for credit transfers are reachable for instant credit transfers 24 hours a day and on any calendar day;

Removed(d) after having received an instant credit transfer, the payee’s PSP shall immediately make the amount of that transaction available on the payee’s payment account in the currency in which the payee’s account is denominated.

Removed2a. PSPs shall offer their PSUs the possibility of determining a maximum amount that is able to be transferred by means of instant credit transfer. PSPs shall ensure that PSUs are able to modify that maximum amount at any time prior to the initiation of a payment order for an instant credit transfer. Where a PSU’s payment order for an instant credit transfer exceeds the maximum amount, the payer’s PSP shall not execute the instant credit transfer and shall notify the PSU thereof.

Removed3. When providing instant credit transfers in euro, PSPs shall offer to their PSUs the possibility to submit multiple payment orders as a package, without limit, if they offer that possibility to their PSUs for other types of credit transfers.

Removed4. PSPs as referred to in paragraph 1 that are located in a Member State whose currency is the euro shall offer PSUs the service of receiving instant credit transfers in euro by … [PO please insert the date = 6 months after the date of entry into force of this Regulation], and the service of sending instant credit transfers in euro by … [PO please insert the date = 12 months after the date of entry into force of this Regulation]. PSPs that are electronic money institutions as defined in Article 2, point (1), of Directive 2009/110/EC or payment institutions as defined in Article 4, point (4), of Directive (EU) 2015/2366 and that are located in a Member State whose currency is the euro shall offer PSUs the service of sending and receiving instant credit transfers in euro by ... [18 months after the date of entry into force of this amending Regulation].

RemovedPSPs as referred to in paragraph 1 located in a Member State whose currency is not the euro shall offer PSUs the service of receiving instant credit transfers in euro by …[ PO please insert the date = 30 months after the date of entry into force of this Regulation], and the service of sending instant credit transfers in euro by …[ PO please insert the date = 36 months after the date of entry into force of this Regulation].

RemovedCharges in respect of instant credit transfers

Removed1. Any charges applied by a PSP on payers and payees in respect of sending and receiving instant credit transfer transactions in euro shall not be higher than the charges applied by that PSP in respect of sending and receiving other, corresponding, credit transfer transactions in euro.

Removed1a. PSPs shall not increase, directly or indirectly, their charges in respect of sending and receiving other, corresponding, credit transfer transactions in euro with the aim of circumventing paragraph 1.

RemovedCompetent authorities may, where they suspect that a PSP is engaged in a circumvention practice referred to in the first subparagraph, request from that PSP any information they deem necessary to determine whether that PSP has engaged in such practice and shall take all necessary measures to ensure compliance by that PSP with this Article.

Removed1b. EBA shall submit a report to the European Parliament, to the Council and to the Commission by … [four years after the date of entry into force of this amending Regulation] on the impact of the application of paragraph 1 on the pricing of credit transfers and instant credit transfers. The Commission shall consider the results of that report and shall submit, where appropriate, a legislative proposal to the European Parliament and to the Council.

Removed2. PSPs located in a Member State whose currency is the euro shall comply with this Article by …[ PO please insert the date = 6 months after the date of entry into force of this Regulation].

RemovedPSPs located in a Member State whose currency is not the euro shall comply with this Article by …[ PO please insert the date = 30 months after the date of entry into force of this Regulation].

RemovedVerification of a payee in the case of ▌credit transfers

Removed1. With regard to regular and instant credit transfers, a payer’s PSP shall verify whether the payment account identifier and the name of the payee provided by the payer match. Such verification shall be provided free of charge to PSUs and regardless of the PSU interface used by the payer to place a payment order for an instant credit transfer. The payer’s PSP shall immediately notify the payer of any discrepancies detected and the degree of match as follows:

Removed(a) ‘match’, meaning that no discrepancy is detected between the payment account identifier and the name of the payee;

Removed(b) ‘close match’, meaning that the name of the payee almost matches with the payment account identifier provided. In such cases, the PSP shall indicate to the payer the name of the payee associated to the payment account identifier provided;

Removed(c) ‘no match’, meaning that the name and the payment account identifier do not match. If the payment account identifier relates to the payment account of a natural person, the PSP shall not reveal the name of the payee associated to the payment account;

Removed(d) ‘unavailable’, meaning that the payment account does not exist or could not be verified.

RemovedPSPs shall provide that service immediately after the payer provided to its PSP the payment account identifier of the payee and the name of the payee, and before the payer is offered the possibility to authorise the instant credit transfer.

RemovedWhere a payee is a legal entity and a PSU interface allows the payer to place a payment order by providing the payment account identifier of the payee, together with data elements other than the name of the payee that unambiguously identify the payee, such as a fiscal number, a European unique identifier as referred to in Article 16(1), second subparagraph, of Directive (EU) 2017/1132, or an LEI, and where such data elements are available to the payee’s PSP, the payer’s PSP shall fulfil the obligation in the first subparagraph of this paragraph based on those data elements.