--- instrument_id: psr chunk_id: psr_t05 chunk_title: FINAL PROVISIONS path: Title V source_class: operative_text document_type: proposal normative_weight: non_binding legal_status: council_compromise_text jurisdiction: EU effective_period: from: null to: null articles_contained: - 107 - 108 - 108a - 109 - 110 - 110a - 110b - 110c - 111 - 112 topics: - payments - payment_services - final_provisions - fraud_prevention - authorisation - refunds - open_banking - aml - crypto_assets - liability --- # Title V - FINAL PROVISIONS ## Article 107 - More favourable refund rights and stricter fraud prevention measures 1. Member States or payment service providers may grant payment service users more favourable refund rights in relation to authorised credit transfers as referred to in Articles 57 and 59 and provide for stricter fraud prevention measures that go beyond those set out in Article 83(1) and Article 84. 2. Member States shall, by [ OP please insert the date= the date of entry into force of this Regulation], notify to the Commission the provisions adopted pursuant to paragraph 1. They shall, without delay, notify any subsequent amendment to the Commission. ## Article 108 - Review clause 1. The Commission shall, by [OP please insert the date = 7 years after entry into force of this Regulation], submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report on the application and impact of this Regulation, and in particular on: (a) the appropriateness and the impact on competition and the uptake of open banking of the rules on access to payment accounts data on the business of account information services and payment initiation services, and in particular of the rules on dedicated interfaces and their respective derogations as per Articles 38 and 39; (b) the impact of the rules on the absence of obligatory contractual arrangements and compensation for access by account information service and payment initiation service providers to interfaces referred to in Article 34; (d) the appropriateness and impact of the rules on prevention and redress of fraud on both unauthorised and authorised transactions, taking into account types and trends of fraudulent behaviours. (da) the appropriateness and impact of the rules on the extent of situations where a consumer has a refund right for authorised transactions in accordance with Article 59. Where appropriate, the Commission shall submit a legislative proposal together with its report. 1a. The Commission shall, by ... [5 years after entry into force of this Regulation], submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report reviewing: - the impact of the surcharging provisions, including the effects on consumers, merchants, and competition, and shall assess the need for further harmonisation; and - the impact of refund mechanisms managed by operators of payment schemes or payment service providers that are applicable to payee initiated transactions, with the exclusion of direct debits, as well as the effects of those refund mechanisms on consumers, merchants and competition; - the impact of the provisions contained in Article 59a in relation to obligations imposed on electronic communications services providers in particular, whether those obligations improve the effectiveness of the cooperation between electronic communications services providers and payment service providers under Article 59a. On the basis of that assessment, the Commission shall determine whether it is necessary to introduce any further measures regulating the involvement of electronic communications services providers and payment service providers in the security of payment transactions at EU level; - the impact of the provisions contained in Article 59a in relation to obligations imposed on providers of hosting services, very large online platforms and very large online search engines, in particular whether those obligations improve the effectiveness of the cooperation between providers of hosting services and payment service providers under Article 59a, 59b and the right of redress for PSPs under Article 78. On the basis of that assessment, the Commission shall determine whether it is necessary to introduce any further measures regulating the involvement of providers of hosting services, very large online platforms and very large online search engines, and payment service providers in the security of payment transactions at EU level. Where appropriate, the Commission shall submit a legislative proposal together with its report. 1b. The Commission shall, by ... [3 years after entry into force of this Regulation], submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report assessing: - the scope of this Regulation, with regard in particular to payment systems, payment schemes and technical service providers; - whether, in light of the risks and challenges, including anti money laundering law enforcement perspectives, posed by virtual IBANs, including from an anti-money laundering law enforcement perspective, and of their benefits, it would be necessary to introduce further measures regulating virtual IBANs at EU level; - the appropriateness and the impact of the rules set out in Titles II and III of this Regulation with regard to payment transactions with electronic money tokens; - whether, given developments, it would be desirable, to extend the requirements in this Regulation on the verification of the payee and open banking to payment transactions with electronic money tokens. Where appropriate, the Commission shall submit a legislative proposal together with its report. 2. The Commission shall, by [ OP please insert the date= 18 months after the date of entry into force of this Regulation] submit to the European Parliament, the Council, the ECB and the European Economic and Social Committee, a report on the practices of payment card schemes, processing entities, payment service providers providing acquiring services and in particular on: (a) the evolution of their fees in the EEA; including: i. fees charged by payment card schemes and processing entities to payment service providers providing acquiring by key transaction category, per Member State, ii. fees charged by payment service providers providing acquiring services to business payment service users; (b) the conditions related to the application of new rules and associated fees, such as notification period of these rules and fees by payment card schemes and processing entities; (c) the communication by payment card schemes to payment service providers providing acquiring services and processing entities related to rules and fees and their implementation timeline; (d) the capacity of issuers and acquirers to negotiate rules and fees proposed by payment card schemes; (e) the competitive behaviour of the payment card schemes in the acquiring and issuing markets. Where appropriate, the Commission shall submit a legislative proposal together with that report. A non confidential version of the report shall be made available to the public, including but not limited to aggregate information on the evolution of fees. ## Article 108a - Transitional provisions By way of derogation from Directive (EU) 2015/2366, until [21 months after the entry into force of this Regulation]: (a) the following payment transactions shall be excluded from the application of Directive (EU) 2015/2366: - payment transactions made exclusively in electronic money tokens directly from the payer to the payee, without any intermediary intervention; - payments transactions carried out by a crypto-asset service provider intermediating between a buyer and a seller where electronic money tokens are exchanged for other electronic money tokens or for crypto-assets, as well as the exchange of electronic money tokens for funds, including electronic money tokens, or crypto-assets carried out by a crypto-asset service provider acting in its own name as buyer or seller of those electronic money tokens; - payment transactions carried out between crypto-asset service providers or their branches for their own account. (b) as regards payment transactions with electronic money tokens settled on the distributed ledger, where payment service providers are not able, due to circumstances that are not attributable to them, to comply with the obligations set out by Article 45(1), points (b) and (c), Article 52(2), point (e) and (3), point (a) and Article 56 of Directive (EU) 2015/2366, the payment service providers shall provide the information required therein by way of a reasoned estimation as soon as possible, and in any case prior to the payer authorising the transaction; (c) payment service providers shall not be required to apply Article 66(4) and Article 67(3) of Directive (EU) 2015/2366 as regards payment transactions with electronic money tokens. ## Article 109 - Amendments to Regulation (EU) No 1093/2010 Regulation (EU) No 1093/2010 is amended as follows: 1. In Article 1(2), the first sentence is replaced by the following: “The Authority shall act within the powers conferred by this Regulation and within the scope of Directive 2002/87/EC, Directive 2008/48/EC (1), Directive 2009/110/EC, Regulation (EU) No 575/2013 (2), Directive 2013/36/EU (3), Directive 2014/49/EU (4), Directive 2014/92/EU (5), Directive (EU) [ … ] (PSD3), Regulation (EU) [ … ] (PSR) of the European Parliament and of the Council and, to the extent that those acts apply to credit and financial institutions and the competent authorities that supervise them, within the relevant parts of Directive 2002/65/EC, including all directives, regulations, and decisions based on those acts, and of any further legally binding Union act which confers tasks on the Authority.;” 2. Article 4(2) is amended as follows: (a) point (i) is replaced by the following: ‘competent authorities or supervisory authorities within the scope of the sectoral acts referred to in Article 1(2), including the European Central Bank with regard to matters relating to the tasks conferred on it by Regulation (EU) No 1024/2013;’ (b) points (iii), (vi), (vii) and (viii) are deleted. ## Article 110 - Amendment to Regulation (EU) No 2017/2394 In the Annex to Regulation (EU) 2017/2394, the following point is added: ‘29. Regulation (EU) xxxx of the European Parliament and of the Council of xxxx on payment services in the internal market and amending Regulation (EU) No 1093/2010.’ ## Article 110a - Amendment to Regulation (EU) No 2021/1230 Regulation (EU) No 2021/1230 is amended as follows: 1. In Article 4, the first paragraph is replaced by the following: ‘1. With regard to the information requirements on currency conversion charges and the applicable exchange rate, as set out in Articles 13(1), 20(c), and 5(2) of Regulation (EU) [PSR] of the European Parliament and of the Council30, payment service providers and parties providing currency conversion services at an automated teller machine (ATM) or at the point of sale, as referred to in Article 5(2) of that Regulation, shall express the total currency conversion charges as a monetary amount in the currency of the payer’s account and as a percentage mark-up over an aggregated mid-market exchange rate as referred to in Article 5(4) of that Regulation. That mark-up and any other applicable charges shall be disclosed to the payer prior to the initiation of the payment transaction.’; 30 OP: Please insert in the text the number of the Regulation contained in document 2023/0210 (COD) (Proposal for a regulation of the European Parliament and of the Council on payment services in the internal market and amending Regulation (EU) No 1093/2010 and Regulation (EU) No 2021/1230 - COM/2023/367 final) and insert the number, date, title and OJ reference of that Regulation in the footnote. 2. In Article 5, the first paragraph is replaced by the following: ‘1. When a currency conversion service is offered by the payer’s payment service provider in relation to a credit transfer, as defined in point 28 of Article 3 of Regulation (EU) [PSR] of the European Parliament and of the Council31, that is initiated online directly, using the website or the mobile banking application of the payment service provider, the payment service provider, with regard to Articles 13(1) and 20(c) of that Regulation, shall inform the payer prior to the initiation of the payment transaction, in a clear, neutral and comprehensible manner, of the estimated charges for currency conversion services and any other charges applicable to the credit transfer. The estimated charges for currency conversion in relation to credit transfers shall be expressed as a monetary amount in the currency of the payer’s account and as a percentage mark-up over an aggregated mid-market exchange rate as referred to in Article 5(4) of that Regulation.’ 31 OP: Please insert in the text the number of the Regulation contained in document 2023/0210 (COD) (Proposal for a regulation of the European Parliament and of the Council on payment services in the internal market and amending Regulation (EU) No 1093/2010 and Regulation (EU) No 2021/1230 - COM/2023/367 final) and insert the number, date, title and OJ reference of that Regulation in the footnote. ## Article 110b - Amendment to Regulation (EU) No 2023/1114 Article 60 is amended as follows: The following paragraph 4a is inserted: '4a. A payment institution may provide crypto-asset services in relation to e-money tokens for the purposes of providing payment services, where such crypto-asset services are deemed equivalent to those payment services for which the payment institution has been authorised under [PSD3] if it notifies the competent authority of the home Member State of the information referred to in paragraph 7 of this Article at least 40 working days before providing those crypto-asset services for the first time. For the purpose of this paragraph: providing custody and administration of crypto-assets on behalf of clients is deemed equivalent to the payment service of enabling cash to be placed on or withdrawn from a payment account referred to in point (1), of Annex I to [PSD3]; the exchange of crypto-assets for funds and other crypto-assets is deemed equivalent to the payment service of execution of payment transactions referred to in point (2), of Annex I of [PSD3]; providing transfer services for crypto-assets on behalf of clients is deemed equivalent to the payment service of execution of payment transactions referred to in point (2), of Annex I of [PSD3]; the execution of orders for crypto-assets on behalf of clients is deemed equivalent to the payment service of execution of payment transactions referred to in point (2), of Annex I of [PSD3]; the reception and transmission of orders for crypto-assets on behalf of clients is deemed equivalent to the payment initiation services referred to in point (6), of Annex I of [PSD3].' ## Article 110c - Amendment to Regulation (EU) No 260/2012 1. In Article 2, the following point is added: ‘(15a) ‘virtual IBAN’ means an identifier containing the elements specified by the ISO as referred to in point (15) and causing payments to be redirected to a payment account identified by an IBAN different from that identifier.’ . 2. The following article is inserted: ‘Article 2a Payment account identifier For the purposes of this Regulation a virtual IBAN shall be considered to be a valid payment account identifier where the use of an IBAN is required.’ 3. Article 5c is amended as follows: (a) paragraph 5 is replaced by the following: ‘PSPs shall ensure that the performance of the service ensuring verification and of the service described in paragraph 2 does not prevent payers from authorising the credit transfer concerned, without prejudice to the third subparagraph of paragraph 6.’ (b) paragraph 6 is replaced by the following: ‘PSPs shall provide PSUs that are not consumers with the means to opt out from receiving the service ensuring verification when submitting payment orders via payment initiation channels that are based on automated dedicated processes or protocols and that are only made available to PSUs that are not consumers. PSPs shall ensure that PSUs that are not consumers that opted out from receiving the service ensuring verification have the right to opt in at any time to receive that service. In the case of payment orders submitted via payment initiation channels referred to in the first subparagraph, including multiple payment orders that are submitted as a package, PSPs shall offer PSUs that are not consumers the possibility of agreeing in the framework contract that: (a) the service ensuring verification is provided after authorisation of those payment orders; and (b) the payer’s PSP executes those payment orders without any further input from the PSU only in one or more of the following cases: (i) the information received by the payer’s PSP from the payee’s PSP shows that that the name of the payee as provided by the payer matches the payment account identifier specified in point (1)(a) of the Annex; (ii) the information received by the payer’s PSP from the payee’s PSP shows that that the name of the payee as provided by the payer almost matches the payment account identifier specified in point (1)(a) of the Annex; (iii) the service ensuring verification cannot be provided because of technical reasons. The possibility for the PSU that is not a consumer to contractually agree that the payer’s PSP executes payment orders as set out in the third subparagraph shall be without prejudice to the requirement in paragraph 1, point (a), for the payer’s PSP to indicate to the payer, in cases where the name of the payee as provided by the payer almost matches the payment account identifier specified in point (1)(a) of the Annex provided by the payer, the name of the payee associated with that payment account identifier. For the purposes of paragraph 8, where the payer’s PSP proceeds to execute the payment orders in accordance with the framework contract as referred to in the third subparagraph, the payer’s PSP shall not be deemed liable for not having complied with the requirement to offer the service ensuring payee verification. ’ ## Article 111 - Correlation table Any reference to Directive (EU) 2015/2366 and to Directive 2009/110/EC shall be construed as a reference to Directive (EU) (PSD3) or to this Regulation and shall be read in accordance with the correlation table in the Annex to this Regulation. ## Article 112 - Entry into force and application This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from [ OP please insert the date= 21 months after the date of entry into force of this Regulation]. However, Articles 50 and 57 shall apply from [ OP please insert the date= 27 months after the date of entry into force of this Regulation]. Articles 85a and 108a shall apply from the date of entry into force of this Regulation. This Regulation shall be binding in its entirety and directly applicable in all Member States.