Financial Services & Fintech |  Aug 05, 2013

Payment Services New Rules for the benefit of consumers and retailers

In order to adapt the EU payments market to the opportunities of the single market and to support the growth of the EU economy, the European Commission adopted a package on 24th July 2013 including:

This proposal will promote the digital single market, making internet payments cheaper and safer, both for retailers and consumers.

The proposed changes to interchange fees will remove an important barrier between national payment markets and finally put an end to the unjustified high level of these fees.

Benefits brought about by the revised PSD include:

  • Facilitating and rendering more secure use of low cost internet payment services;
  • Allowing cheap and efficient electronic payments without the use of a credit card;
  • Banks and all other payment service providers will need to step up the security of online transactions by including strong customer authentication for payments;
  • Consumers shall be better protected against fraud, possible abuses and payment incidents;
  • An increase in consumer rights when sending transfers and money remittances outside Europe or paying in non-EU currencies; and
  • Promoting the emergence of new players and the development of innovative mobile and internet payments in Europe for sake of EU competitiveness worldwide.

The Regulation on interchange fees, combined with the revised PSD, will introduce maximum levels of interchange fees for transactions based on consumer debit and credit cards and ban surcharges on these types of cards. Capping the interchange fees will therefore reduce costs for retailers and consumers and help to create an EU-wide payments market. This should also encourage innovation and give more scope for payment providers to offer new services.

For any further queries in relation to the Payment Services Directive (“PSD2”) and the proposal for Regulation on Interchange Fees for Card-based Payment Transactions, kindly contact us here.

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Key Contacts

Andrew J Zammit | Managing Partner | GVZH Advocates

Andrew J. Zammit

Kurt Hyzler | GVZH Advocates | Malta Law Firm

Kurt Hyzler

Luca Vella | GVZH Advocates

Luca Vella

Jeanelle Cachia | GVZH Advocates | Malta Law Firm

Jeanelle Cachia

Katia Cachia | GVZH Advocates | Top Tier Law Firm Malta

Katia Cachia

Danica Decesare - GVZH Advocates - Malta Law Firm.jpg

Danica Decesare

Francesca Anastasi - GVZH Advocates - Malta Law Firm

Francesca Anastasi

Gianluca Vella - GVZH Advocates - Malta Law Firm

Gianluca Falzon

Nicola Fenech Conti - GVZH Advocates - Malta Law Firm

Nicola Fenech Conti

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