Changes from report parliamentary committee draft to plenary report

AddedThis Chapter applies to payment transactions covered by a framework contract.

AddedPrior general information

Added1. In good time before the payment service user is bound by any framework contract or offer, the payment service provider shall provide the payment service user on paper or on another durable medium with the information and conditions set out in Article 20. The information and conditions shall be given in easily understandable words and in a clear and comprehensible form, in an official language of the Member State where the payment service is offered or in any other language agreed between the parties.

Added2. Where the framework contract has been concluded at the request of the payment service user using a means of distance communication which does not enable the payment service provider to comply with paragraph 1, the payment service provider shall fulfil its obligations under that paragraph immediately after conclusion of the framework contract.

Added3. Payment service providers may also comply with their obligations under paragraph 1 by providing to payment service users a copy of the draft framework contract including the information and conditions set out in Article 20.

AddedInformation and conditions

AddedThe payment service provider shall provide in a transparent, distinguishable and understandable way the following information and conditions to the payment service user:

Added(a) on the payment service provider:

Added(i) the name of the payment service provider, the geographical address of its head office and, where applicable, the geographical address of its agent, distributor or branch established in the Member State where the payment service is offered, and any other address, including electronic mail address, relevant for communication with the payment service provider;

Added(ii) the particulars of the relevant supervisory authorities designated under Directive (EU) [PSD3] and of the register provided for in Articles 17 and 18 of that Directive or of any other relevant public register of authorisation of the payment service provider and the registration number or equivalent means of identification in that register;

Added(b) on the use of the payment service:

Added(i) a description of the main characteristics of the payment service to be provided;

Added(ii) a specification of the information or unique identifier that has to be provided by the payment service user in order for a payment order to be properly placed or executed;

Added(iii) the form of and procedure for placing a payment order or giving permission to execute a payment transaction and withdrawal of such permission in accordance with Articles 49 and 66;

Added(iv) a reference to the time of receipt of a payment order in accordance with Article 64 and the cut-off time, if any, established by the payment service provider;

Added(v) the maximum execution time for the payment services to be provided;

Added(vi) the estimated time for the funds of credit transfers to be received by the payment service provider of the payee located outside the Union;

Added(vii) whether there is a possibility to agree on spending limits for the use of the payment instrument in accordance with Article 51(1);

Added(viii) in the case of co-badged card-based payment instruments, the payment service user’s rights under Article 8 of Regulation (EU) 2015/751;

Added(c) on charges, interest and exchange rates:

Added(i) all charges payable by the payment service user to the payment service provider including those connected to the manner in and frequency with which information under this Regulation is provided or made available and, where applicable, the breakdown of the amounts of such charges;

Added(ii) all charges, if any, for Union, automated teller machines (ATMs) withdrawals payable by payment service users to their payment service provider at an ATM of:

Added(1) their payment service provider;

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Added(3) a payment service provider belonging to a network of ATMs with whom the user’s payment service provider has a contractual relationship;

Added(4) an ATM provider not servicing payment accounts when offering cash withdrawal services;

Added(iii) where applicable, the interest and exchange rates to be applied or, if reference interest and exchange rates are to be used, the method of calculating the actual interest, and the relevant date and index or base for determining such reference interest or exchange rate;

Added(iv) where agreed, the immediate application of changes in reference interest or exchange rate and information requirements relating to the changes in accordance with Article 22(3);

Added(v) where applicable, the estimated charges for currency conversion services in relation to a credit transfer expressed as a total amount in real monetary value and a percentage mark-up over a foreign exchange benchmark rate which complies with Regulation (EU) 2016/1011. Those charges, and the percentage mark-up, shall be clearly displayed before the final execution of the transaction by the payer in the home currency of the payer ;

Added(d) on communication:

Added(i) where applicable, the means of communication, including the technical requirements for the payment service user’s equipment and software, agreed between the parties for the transmission of information or notifications under this Regulation;

Added(ii) the manner in, and frequency with which, information under this Regulation is to be provided or made available;

Added(iii) the language or languages in which the framework contract will be concluded and communication during that contractual relationship undertaken;

Added(iv) the payment service user’s right to receive the contractual terms of the framework contract and information and conditions in accordance with Article 21;

Added(e) on safeguards and corrective measures:

Added(i) where applicable, a description of the steps that the payment service user is to take in order to keep safe a payment instrument and how to notify the payment service provider for the purposes of Article 52, point (b);

Added(ii) the secure procedure for notification of the payment service user by the payment service provider in the event of suspected or actual fraud or security threats;

Added(iii) where agreed, the conditions under which the payment service provider reserves the right to block a payment instrument in accordance with Article 51;

Added(iv) the liability of the payer in accordance with Article 57(5), Article 59(3) and Article 60, including information on the relevant amount;

Added(v) how and within what period of time the payment service user is to notify the payment service provider, and the police in case of impersonation fraud referred to in Article 59, of any unauthorised or incorrectly initiated or executed payment transaction or of any authorised credit transfer made following an incorrect application of the name and unique identifier matching verification service or impersonation fraud, in accordance with Article 54;

Added(vi) the payment service provider’s liability for unauthorised payment transactions in accordance with Article 56, for the incorrect application of the name and unique identifier matching verification service in accordance with Article 57, and for impersonation fraud in accordance with Article 59;

Added(vii) the liability of the payment service provider for the initiation or execution of payment transactions in accordance with Articles 75 and 76;

Added(viii) the conditions for refund in accordance with Articles 62 and 63;

Added(f) on changes to, and termination of, the framework contract:

Added(i) where agreed, information that the payment service user will be deemed to have accepted changes in the conditions in accordance with Article 22, unless the payment service user notifies the payment service provider before the date of their proposed date of entry into force that they are not accepted;

Added(ii) the duration of the framework contract;

Added(iii) the right of the payment service user to terminate the framework contract and any agreements relating to termination in accordance with Article 22(1) and Article 23;

Added(g) on redress:

Added(i) any contractual clause on the law applicable to the framework contract or the competent courts;

Added(ii) the alternative dispute resolution procedures available to the payment service user in accordance with Articles 90, 94 and 95.

AddedAccessibility of information and conditions of the framework contract

AddedAt any time during the contractual relationship the payment service user shall have a right to receive, on request, the contractual terms of the framework contract and the information and conditions set out in Article 20 on paper or on another durable medium.

AddedChanges in conditions of the framework contract

Added1. The payment service provider shall propose any changes in the framework contract or in the information and conditions set out in Article 20 in the same way as provided for in Article 19(1) and no later than 2 months before their proposed date of application. The payment service user can either accept or reject the changes before the date of their proposed date of entry into force.

Added2. Where applicable, in accordance with Article 20, point (f)(i), the payment service provider shall inform the payment service user that the payment service user is to be deemed to have accepted those changes if the payment service user does not notify the payment service provider before the proposed date of their entry into force that they are not accepted. The payment service provider shall also inform the payment service user that, if the payment service user rejects those changes, the payment service user has the right to terminate the framework contract free of charge and with effect at any time until the date when the changes would have applied.

Added3. Changes in the interest or exchange rates may be applied by the payment service provider immediately and without notice, provided that such a right is agreed upon in the framework contract and that the changes in the interest or exchange rates are based on the reference interest or exchange rates agreed on in accordance with Article 20, point (c)(iii) and (iv). The payment service provider shall inform the payment service user of any change in the interest rate at the earliest opportunity in the same way as provided for in Article 19(1), unless the parties have agreed on a specific frequency or manner in which the information is to be provided or made available. However, changes in interest or exchange rates which are more favourable to the payment service users, may be applied by the payment service provider without notice.

Added4. The payment service provider shall implement and calculate changes in the interest or exchange rate used in payment transactions in a neutral manner that does not discriminate against payment service users.

AddedTermination

Added1. The payment service user may terminate the framework contract at any time, unless the parties have agreed on a period of notice. Such a period shall not exceed 1 month.

Added2. Termination of the framework contract shall be free of charge for the payment service user except where the contract has been in force for less than 3 months. Charges, if any, for termination of the framework contract shall be appropriate and in line with costs. Where, under the framework contract, payment services are offered jointly with technical services aimed at supporting the provision of payment services and provided by the payment service provider or by a third party the payment service provider has partnered with, such technical services shall be subject to the same framework contract requirements on termination fees.