What is PSD2 in simple terms?
What is PSD2 in simple terms?
Put simply, Payment Services Directive Two (PSD2) is a piece of legislation designed to force providers of payment services to improve customer authentication processes and to also bring in new regulation around third-party involvement.
What is money remittance under PSD2?
Recital 9 of PSD2 describes money remittance as “a simple payment service that is usually based on cash provided by a payer to a payment service provider, which remits the corresponding amount, for example, via communication network, to a payee or to another payment service provider acting on behalf of the payee”.
What is in scope of PSD2?
Under PSD2, the purchase of physical goods and services through a telecom operator now falls within the scope of the Directive. Under the new rules, the exclusion for payments through telecom operators has also been further specified and narrowed down.
What is PSD in banking?
The Payment Services Directive is an EU Directive administered by the European Commission (Directorate General Internal Market) to regulate payment services and payment service providers throughout the European Union (EU) and European Economic Area (EEA).
What is a PSD complaint?
So, what is a PSD complaint? A PSD complaint is a complaint that relates to the conduct of business rules in the Payment Services Regulations 2017 (the PSRs).
Who needs a PSD2 Licence?
Because PSD2 is about using payment data, one of the most sensitive types of consumer data, it is heavily regulated across Europe and nationally. For FinTechs to make use of PSD2, they need to obtain a license to operate from the respective regulator.
What is payment transaction execution?
When money is transferred from a payment account of the payer to a payment account of the payee, this is usually the execution of payment transactions. Where an acquirer accepts payments on behalf of a merchant, this is usually acquiring, even if the acquirer does not keep a payment account for the merchant.
What can a PSD agent do?
These ‘Payment Services Directive (PSD) Agents’ or ‘Electronic Money Directive (EMD) Agents’, collectively ‘Agents’, are able to conduct business, seemingly on behalf of one or more ‘Principal’ firms, to the extent of the permission held by the Principal firm.
What are the rules of PSD2?
The PSD2 sets rules for access to payment accounts for third-party payment service providers. Member States must ensure that account-servicing payment service providers are not blocking or obstructing the use of payment initiation and account information services for the accounts they hold.
What is a PSD individual?
Application Form for an individual responsible for the. management of a Payment Institution. Notes to help complete the PSD Individual Form for an individual responsible for the management of a small Payment Institution (SPI) or authorised Payment Institution (API).
What is Aisp and PISP?
AISP – Stands for Account Information Service Provider. PISP – Stands for Payment Initiation Service Provider. What can AISP’s do? Being an authorised AISP means that business can ask for permission to connect to a bank account and use that bank account information to provide a service.
What are PSD2 one leg out transactions?
What Are One Leg Out Transactions? One leg (out) transactions – as you may have guessed – refer to those payment transactions where one of the PSPs (either of the payer or the payee) is based outside of the EU. Under PSD1, one leg transactions were largely out of scope. Under PSD2 these transactions will fall within scope.
What are one leg out transactions?
What Are One Leg Out Transactions? One leg (out) transactions – as you may have guessed – refer to those payment transactions where one of the PSPs (either of the payer or the payee) is based outside of the EU. Under PSD1, one leg transactions were largely out of scope.
Should PSPS give up margins to merchants?
Not many PSPs would like to give up their actual margin to their merchants, but it becomes particularly interesting for one leg transactions.
Which payment service providers are not subject to PSD?
Other payment service providers such as banks and e-money issuers will not be subject to authorisation under the PSD and will (where relevant) continue to be authorised under the FSMA regime. The Regulations require that payment service providers give certain information to payment service users at particular stages of a transaction.