# PSD3 Article 2 — Definitions

Textual state: amended_substantial. 1092 words changed

- Current text: Council final compromise text (Council document 8222/26) — not yet law.
- Compared against: COM(2023) 366 final — superseded.
- Classification is mechanical; method: https://paymentslaw.eu/method/
- Editorial review state: not_assessed. Markers are curated and selective, not a complete assessment.

Word-level diff, proposal → compromise: `{+text+}` was inserted, `[-text-]` was deleted.

## Paragraph 0

For the purposes of this Directive, the following definitions apply: (1) ‘home Member State’ means either of the following: (a) the Member State in which the payment service provider has its registered office; or (b) if the payment service provider has, under its national law, no registered office, the Member State in which the payment service provider has its head office; (2) ‘host Member State’ means the Member State other than the home Member State in which a payment service provider has an [-agent, a distributor, -]{+agent +}or a branch or provides payment services; (3) ‘payment service’ means any business activity set out in Annex I; (4) ‘payment institution’ means a legal person that has been granted authorisation in accordance with Article 13 to provide payment services [-or electronic money services -]throughout the Union; (5) ‘payment transaction’ means [-an act of placing, transferring or withdrawing funds, based on -]a payment [-order placed by the payer, or on his behalf, or by the payee, or on his behalf, irrespective -]{+transaction as defined in Article 3, point (5), +}of [-any underlying obligations between the payer and the payee; -]{+Regulation XXX [PSR]; +}(6) ‘execution of a payment transaction’ means the process starting once the initiation of a payment transaction is completed and ending once the funds placed, withdrawn, or transferred are available to the payee; (7) ‘payment system’ means a [-funds transfer -]{+payment +}system [-with formal and standardised arrangements and common rules for the processing, clearing or settlement -]{+as defined in Article 3, point (9), +}of [-payment transactions; -]{+Regulation XXX [PSR]; +}(8) ‘payment system operator’ means [-the legal entity legally responsible for operating -]a payment [-system; -]{+system operator as defined in Article 3, point (10), of Regulation XXX [PSR]; +}(9) ‘payer’ means a [-natural or legal person who holds a payment account and places a payment order from that payment account, or, where there is no payment account, a natural or legal person who places a payment order; -]{+payer as defined in Article 3, point (11), of Regulation XXX [PSR]; +}(10) ‘payee’ means a [-natural or legal person who is the intended recipient -]{+payee as defined in Article 3, point (12), +}of [-funds which are the subject of a payment transaction; -]{+Regulation XXX [PSR] ; +}(11) ‘payment service user’ means a [-natural or legal person making use of a -]payment service [-or of an electronic money service -]{+user as defined +}in [-the capacity -]{+Article 3, point (13), +}of [-payer, payee, or both; -]{+Regulation XXX [PSR]; +}(12) ‘payment service provider’ means a [-body referred to -]{+payment service provider as defined +}in Article [-2(1) -]{+3, point (14), +}of Regulation XXX [-[PSR] or a natural or legal person benefiting from an exemption pursuant to Articles 34, 36 and 38 of this Directive; -]{+[PSR]; +}(13) ‘payment account’ means [-an account held by -]a payment [-service provider -]{+account as defined +}in [-the name -]{+Article 3, point (15), +}of [-one or more payment service users which is used for the execution of one or more payment transactions and allows for sending and receiving funds to and from third parties; -]{+Regulation XXX [PSR]; +}(14) ‘payment order’ means [-an instruction by -]a [-payer or payee to its -]payment [-service provider requesting the execution -]{+order as defined in Article 3, point (16), +}of [-a payment transaction; -]{+Regulation XXX [PSR]; +}(15) ‘payment instrument’ means [-an individualised device or devices and/or set of procedures agreed between the payment service user and the payment service provider which enables the initiation of -]a payment [-transaction; -]{+instrument as defined in Article 3, point (18), of Regulation XXX [PSR]; +}(16) ‘account servicing payment service provider’ means [-a -]{+an account servicing +}payment service [-provider providing and maintaining a payment account for a payer; -]{+provider’ as defined in Article 3, point (19), of Regulation XXX [PSR]; +}(17) ‘payment initiation service’ means a [-service to place a -]payment [-order at the request of the payer or of the payee with respect to a payment account held at another payment -]{+initiation +}service [-provider; -]{+as defined in Article 3, point (20), of Regulation XXX [PSR]; +}(18) ‘account information service’ means an [-online service of collecting, either directly or through a technical service provider, and consolidating -]{+account +}information [-held on one or more payment accounts of a payment -]service [-user with one or several account servicing payment service providers; -]{+as defined in Article 3, point (21), of Regulation XXX [PSR]; +}(19) ‘payment initiation service provider’ means a payment {+initiation +}service provider [-providing payment initiation services; -]{+as defined in Article 3, point (22), of Regulation XXX [PSR]; +}(20) ‘account information service provider’ means [-a payment service provider providing -]{+an +}account information [-services; -]{+service provider as defined in Article 3, point (23), of Regulation XXX [PSR]; +}(21) ‘consumer’ means a [-natural person who, -]{+consumer as defined +}in [-payment service contracts covered by this Directive, is acting for purposes other than his or her trade, business or profession; -]{+Article 3, point (24), of Regulation XXX [PSR]; +}(22) ‘money remittance’ means a payment service where funds are received from a payer, without any payment accounts being created in the name of the payer or the payee, for the sole purpose of transferring a corresponding amount to a payee or to another payment service provider acting on behalf of the payee, or where such funds are received on behalf of and made available to the payee; (23) ‘funds’ means [-central bank money issued for retail use, scriptural money and electronic money; -]{+funds as defined in Article 3, point (30), of Regulation XXX [PSR] ; +}(24) ‘technical service provider’ means a {+technical service +}provider {+as defined in Article 3, point (36), +}of [-services which, although not being payment services, are necessary to support the provision of payment services, without the provider of technical services entering at any time into possession of the funds to be transferred; -]{+Regulation XXX [PSR]; +}(25) ‘sensitive payment data’ means {+sensitive payment +}data [-which can be used to carry out fraud, including personalised security credentials; -]{+as defined in Article 3, point (38), of Regulation XXX [PSR]; +}(26) ‘business day’ means a {+business +}day [-on which the payment service provider of the payer or of the payee involved -]{+as defined +}in [-the execution -]{+Article 3, point (43), +}of [-a payment transaction is open for business as required for the execution of a payment transaction; -]{+Regulation XXX [PSR] +}(27) ‘Information and {+communications +}technology (ICT) services’ means ICT Services as defined in Article 3, point [-21, -]{+(21), +}of Regulation (EU) 2022/2554; (28) ‘agent’ means a natural or legal person who acts {+in the name and +}on behalf of a payment institution in providing payment {+services, and who either enters into possession of funds on behalf of the payment institution or is directly involved in the payment institution's provision of payment +}services; (29) ‘branch’ means a place of business other than the head office which is a part of a payment institution, which has no legal personality and which carries out directly some or all of the transactions inherent in the business of a payment institution; all of the places of business set up in the same Member State by a payment institution with a head office in another Member State shall be regarded as a single branch; (30) ‘group’ means a group of undertakings that are linked to each other by a relationship as referred to in Article 22(1), [-points -](2) or (7) of Directive 2013/34/EU of the European Parliament and of the [-Council[51], -]{+Council19, +}or undertakings as referred to in Articles 4, 5, 6 and 7 of Commission Delegated Regulation (EU) No [-241/2014[52], -]{+241/201420, +}which are linked to each other by a relationship as referred to in Article 10(1) or Article 113(6), first subparagraph, or 113(7), first subparagraph of Regulation (EU) No 575/2013; (31) ‘acquiring of payment transactions’ means a payment service [-provided by a payment service provider contracting with a payee to accept and process payment transactions, which results -]{+as defined +}in [-a transfer -]{+Article 3, point (48), +}of [-funds to -]{+Regulation XXX [PSR]; 19 Directive 2013/34/EU of +}the [-payee; -]{+European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19). 20 Commission Delegated Regulation (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (OJ L 74, 14.3.2014, p. 8). +}(32) ‘issuing of payment instruments’ means [-a -]{+issuing of +}payment [-service by a payment service provider contracting to provide a payer with a payment instrument to initiate and process the payer’s payment transactions; -]{+instruments as defined in Article 3, point (49), of Regulation XXX [PSR]; +}(33) ‘own funds’ means funds as defined in Article 4(1), point 118, of Regulation (EU) No 575/2013 where at least 75 % of the Tier 1 capital is in the form of Common Equity Tier 1 capital as referred to in Article 50 of that Regulation and Tier 2 capital is equal to or less than one third of Tier 1 capital; (34) ‘electronic money’ means [-electronically, including magnetically, stored monetary value -]{+electronic money +}as [-represented by a claim on the issuer which is issued on receipt of funds for the purpose of making payment transactions and which is accepted by other natural or legal persons than the issuer; -]{+defined in Article 3(50) [PSR]; +}(35) ‘average outstanding electronic money’ means the average total amount of financial liabilities related to electronic money in issue at the end of each calendar day over the preceding six calendar months, calculated on the first calendar day of each calendar month and applied for that calendar month; [-(36) ‘distributor’ -]{+(38) ‘ATM deployer’ +}means a natural or legal person [-that distributes or redeems electronic money on behalf of a payment institution; (37) ‘electronic money services’ means the issuance of electronic money, the maintenance of payment accounts storing electronic money units, -]{+providing cash withdrawal services as referred to in Annex I, point (1), +}and [-the transfer of electronic money units; (38) ‘ATM deployer’ means operators of automated teller machines who do -]{+which is +}not [-service -]{+an account servicing +}payment [-accounts. (39) ‘payment institution providing electronic money services’ means a payment institution which provides the services of issuance of electronic money, maintenance of payment accounts storing electronic money units, -]{+service provider +}and [-transfer of electronic money units, whether or -]{+does +}not [-it also provides -]{+provide +}any [-of the -]{+other payment +}services referred to in Annex [-I. -]{+I; (39b) ‘applicant payment institution’ means an undertaking which has applied for authorisation based on Article 3 and of which the decision is still pending; (42) ‘electronic money token’ means an electronic money token as defined in Article 3(1), point (7), of Regulation (EU) 2023/1114.+}