Changes from report parliamentary committee draft to plenary report

AddedPayment transactions where the transaction amount is not known in advance

Added1. Where a payment transaction is initiated by or through the payee in the context of a card-based payment transaction, an account-to-account based transaction or a credit transfer and the exact future amount is not known at the moment when the payer authorizes the execution of the payment transaction, the payer’s payment service provider may only block funds on the payer’s payment account if the payer has given his or her permission to that precise amount of funds to be blocked.

Added2. The amount of the funds blocked by the payer’s payment service provider shall be in proportion with the amount of the payment transaction which can reasonably be expected by the payer.

Added3. The payee shall inform its payment service provider of the exact amount of the payment transaction immediately after delivery of the service or goods to the payer.

Added4. The payer’s payment service provider shall release the funds blocked on the payer’s payment account immediately after receipt of the information about the exact amount of the payment transaction.

AddedRefunds for payment transactions initiated by or through a payee

Added1. A payer shall be entitled to a refund from the payment service provider of an authorised payment transaction which was initiated by the payer through a payee and which has already been executed, where both of the following conditions are met:

Added(a) the authorisation did not specify the exact amount of the payment transaction when the authorisation was made;

Added(b) the amount of the payment transaction exceeded the amount the payer could reasonably have expected taking into account the previous spending pattern, the conditions in the framework contract and relevant circumstances of the case.

AddedAt the payment service provider’s request, the payer shall bear the burden of proving such conditions are met.

AddedThe refund shall consist of the full amount of the executed payment transaction. The credit value date for the payer’s payment account shall be no later than the date the amount was debited.

AddedWithout prejudice to paragraph 3 of this Article, in addition to the right referred to in the first subparagraph of this paragraph, for ▐direct debits as referred to in Article 1 of Regulation (EU) No 260/2012, the payer shall have an unconditional right to a refund within the time limits laid down in Article 63 of this Regulation.

Added2. For the purposes of paragraph 1, first subparagraph, point (b), the payer shall not invoke reasons related to possible currency exchange costs if the reference exchange rate agreed with its payment service provider in accordance with Article 13(1), point (e), and Article 20, point (c)(iii), was applied.

Added3. The payer and the payment service provider may agree in a framework contract that the payer has no right to a refund where:

Added(a) the payer has authorised the execution of the payment transaction directly with the payment service provider;

Added(b) where applicable, information on the future payment transaction was provided or made available in an agreed manner to the payer for at least 4 weeks before the due date by the payment service provider or by the payee.

Added4. For direct debits in currencies other than euro, payment service providers may offer more favourable refund rights in accordance with their direct debit schemes provided that they are more advantageous to the payer.

AddedRequests for refunds for payment transactions initiated by or

Addedthrough a payee

Added1. The payer may request the refund referred to in Article 62 of an authorised payment transaction initiated by or through a payee for a period of 8 weeks from the date on which the funds were debited.

Added2. Within 10 business days of receiving a request for a refund, the payment service provider shall do either of the following:

Added(a) refund the full amount of the payment transaction;

Added(b) provide a justification for refusing the refund and indicate the bodies to which the payer may refer the matter in accordance with Articles 90, 91, 93, 94 and 95 if the payer does not accept the reasons provided.

AddedThe payment service provider’s right under the first subparagraph of this paragraph to refuse the refund shall not apply in the case set out in of Article 62(1), fourth subparagraph.

AddedExecution of payment transactions

AddedPayment orders and amounts transferred

AddedReceipt of payment orders

Added1. The time of receipt of a payment order shall be when the payment order is received by the payer’s payment service provider.

AddedThe payer’s account shall not be debited before receipt of the payment order. If the time of receipt is not on a business day for the payer’s payment service provider, the payment order shall be deemed to have been received on the following business day.

AddedThe payment service provider may establish a cut-off time near the end of a business day beyond which any payment order received shall be deemed to have been received on the following business day.

Added2. If the payment service user placing a payment order and the payment service provider agree that the execution of the payment order shall start on a specific day or at the end of a certain period or on the day on which the payer has put the funds at the payment service provider’s disposal, the time of receipt for the purposes of Article 69 shall be deemed to be the agreed day. If the agreed day is not a business day for the payment service provider, the payment order received shall be deemed to have been received on the following business day.

Added3. This Article shall not apply to instant credit transfers denominated in Euro as covered by Regulation XXX (IPR).

AddedRefusal of payment orders

Added1. Where the payment service provider refuses to execute a payment order or to initiate a payment transaction, the payment service provider shall notify the refusal and, if possible, the reasons for that refusal and the procedure for correcting any factual mistakes that led to the refusal to the payment service user, unless prohibited by other relevant Union or national law.

AddedThe payment service provider shall provide or make available the notification in an agreed manner at the earliest opportunity, and in any case within the periods specified in Article 69. Where the payment service provider refuses to execute the payment based on objective grounds for suspecting a fraudulent payment transaction in accordance with Article 83(1), the notification shall take into account the information necessary for the payment service user to resolve the suspicious transaction.

AddedThe framework contract may include a condition that the payment service provider may charge a reasonable fee for such a refusal if the refusal is objectively justified, but not in the case of a refusal due to a suspected fraudulent transaction.

Added2. Where all of the conditions set out in the payer’s framework contract are met, the payer’s account servicing payment service provider shall not refuse to execute an authorised payment transaction irrespective of whether the payment order is placed by a payer, including through a payment initiation service provider, or by or through a payee, unless prohibited by other relevant Union or national law.

Added3. For the purposes of Articles 69 and 75 a payment order whose execution has been refused shall be deemed not to have been received.

AddedIrrevocability of a payment order

Added1. The payment service user shall not revoke a payment order once it has been received by the payer’s payment service provider, unless otherwise specified in this Article.

Added2. Where the payment transaction is initiated by a payment initiation service provider or by or through the payee, the payer shall not revoke the payment order after giving permission to the payment initiation service provider to initiate the payment transaction or after giving permission to execute the payment transaction to the payee.

Added3. In the case of a direct debit, and without prejudice to refund rights, the payer may revoke the payment order at the latest by the end of the business day preceding the day agreed for debiting the funds.

Added4. In the case referred to in Article 64(2), the payment service user may revoke a payment order at the latest by the end of the business day preceding the agreed day.

Added5. After the time limits laid down in paragraphs 1 to 4, the payment order may be revoked only if agreed between the payment service user and the relevant payment service providers. In the case referred to in paragraphs 2 and 3, the payee’s agreement shall also be required. If agreed in the framework contract, the relevant payment service provider may charge for revocation.

AddedAmounts transferred and amounts received

Added1. The payment service provider of the payer, the payment service provider(s) of the payee and any intermediaries of the payment service providers shall transfer the full amount of the payment transaction and shall refrain from deducting charges from the amount transferred.

Added2. The payee and the payment service provider may agree that the relevant payment service provider deduct its charges from the amount transferred before crediting it to the payee. In such a case, the full amount of the payment transaction and charges shall be separated in the information given to the payee.

Added3. If any charges other than those referred to in paragraph 2 are deducted from the amount transferred, the payment service provider of the payer shall ensure that the payee receives the full amount of the payment transaction initiated by the payer. Where the payment transaction is initiated by or through the payee, the payment service provider of the payee shall ensure that the full amount of the payment transaction is received by the payee.

AddedExecution time and value date

AddedScope

Added1. This Section applies to:

Added(a) payment transactions in euro;

Added(b) national payment transactions in the currency of the Member State outside the euro area;

Added(c) payment transactions involving only one currency conversion between the euro and the currency of a Member State outside the euro area, provided that the required currency conversion is carried out in the Member State outside the euro area concerned and, in the case of cross-border payment transactions, the cross-border transfer takes place in euro.

Added2. This Section applies to payment transactions not referred to in paragraph 1, unless otherwise agreed between the payment service user and the payment service provider, with the exception of Article 73, which is not at the disposal of the parties. However, if the payment service user and the payment service provider agree on a longer period than that set in Article 69, for intra-Union payment transactions, that longer period shall not exceed 5 business days following the time of receipt as referred to in Article 64.

AddedPayment transactions to a payment account

Added1. Without prejudice to Article 2(1), point (c) of Regulation (EU) No 260/2012, the payer’s payment service provider shall ensure that after the time of receipt as referred to in Article 64, the amount of the payment transaction will be credited to the payee’s payment service provider’s account by the end of the following business day. That time limit may be extended by a further business day for paper-initiated payment transactions.

Added2. The payment service provider of the payee shall value date and make available the amount of the payment transaction to the payee’s payment account after the payment service provider has received the funds in accordance with Article 73.

Added2a. Where the transaction monitoring mechanisms set out in Article 83(1) provide reasonable grounds for suspecting a fraudulent payment transaction, the payee’s payment service provider may refuse to make the funds immediately available to the payee’s payment account. The payee’s payment service provider shall, as appropriate and without undue delay, seek clarification on the suspected fraud payment transaction and, depending on that outcome, either make the funds available or return them to the payer’s account servicing payment service provider.

Added3. The payee’s payment service provider shall transmit a payment order placed by or through the payee to the payer’s payment service provider within the time limits agreed between the payee and the payment service provider, enabling settlement, as far as direct debit is concerned, on the agreed due date. Paragraph [2a] shall apply accordingly.