Brussels, |
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Brussels, |
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It lays down the legal foundation for SEPA.
Directive (EU) 2015/2366, also known as PSD2 (Revised Payment Service Directive), aims to create a more integrated internal market for electronic payments within the European Union (EU). Key objectives and points include: a. Harmonized Rules: PSD2 establishes comprehensive rules for payment services, ensuring uniform regulations for payment services across the EU and a high level of consumer protection. b. Competition and Choice: The directive promotes competition and choice by opening up payment markets to new entrants, leading to better prices and services for consumers. c. Single Euro Payments Area (SEPA): It provides the legal basis for SEPA, simplifying euro payments across borders. d. Repeal of Directive 2007/64/EC: PSD2 replaced Directive 2007/64/EC as of January 13, 2018. |
The Regulation (EU) No 260/2012 sets the rules and a deadline in February 2014 (later postponed to August 2014) for euro area countries to make credit transfers and direct debits in euro under the same conditions. It also contains arrangements for euro transfers in euros in countries outside of the euro area.
It aims to standardize euro payments across Europe, with key points including: "Reachability": National accounts used for credit transfers and direct debits within each country should be accessible EU-wide. Uniform Rules: The same rules apply to both national and cross-border transactions. Interoperability: Payment systems should be compatible with each other. Transaction Conditions: Credit transfers and direct debits must meet specific conditions, including the use of standardized international bank account numbers and bank identifier codes for euro payments. Key Dates: Various deadlines were set for implementation, including the adoption of a common format for credit transfers and direct debits and the elimination of multilateral interchange fees. |
The Regulation (EC) 2021/1230 on cross-border payments in the Union mandates that banks apply identical charges for domestic and cross-border electronic payment transactions in euros. This regulation, subsequently amended by the SEPA regulation, aims to foster a more integrated euro payment services market.
The principle of equal charges applies to various electronically processed euro payments, encompassing credit transfers, direct debits, ATM withdrawals, debit and credit card payments, and money remittances. Some countries outside the euro area, such as Sweden and Romania, have opted to extend these rules to their national currencies. In April 2018, the European Commission proposed to extend these benefits to consumers and businesses in non-euro countries. The proposal aims to enable all EU residents to transfer money across borders in euros at the same cost as domestic transactions. Additionally, it mandates that consumers be informed of the currency conversion cost before making payments abroad in a different currency than their own. |