--- 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_position jurisdiction: EU effective_period: from: null to: null articles_contained: - 116 - 117 - 118 - 119 - 120 - 121 - 122 - 123 - 124 topics: - payments - payment_services - final_provisions - fraud_prevention - authorisation - refunds - open_banking - aml - crypto_assets - deposit_guarantee - liability --- # Title V - FINAL PROVISIONS ## Article 116 - 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 58 and 60 and provide for stricter fraud prevention measures that go beyond those set out in Article 87(1) and Article 90. 2. By … [21 months from the date of entry into force of this Regulation], Member States shall notify to the Commission the provisions of the law they adopt pursuant to paragraph 1. They shall notify the Commission without undue delay of any subsequent amendments thereto and of any provisions of the law which they adopt pursuant to paragraph 1 at a later date. ## Article 117 - Review clause 1. The Commission shall, by … [18 months from 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 services of acquiring payment transactions and in particular on: (a) the evolution of their fees in the European Economic Area (EEA); including: (i) fees charged by payment card schemes and processing entities to payment service providers providing services of acquiring payment transactions by key transaction category, per Member State, (ii) fees charged by payment service providers providing services of acquiring payment transactions to business payment service users; (b) the conditions related to the application of new rules and associated fees, such as notification periods of those rules and fees by payment card schemes and processing entities; (c) the communication by payment card schemes to payment service providers providing services of acquiring payment transactions 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 its report. A non-confidential version of the report shall be made available to the public, including aggregate information on the evolution of fees. 2. The Commission shall, by ... [three years from 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 assessing: (a) the scope of this Regulation, with regard in particular to payment systems, payment schemes and technical service providers; (b) whether, in light of the risks and challenges, including anti-money laundering or countering the financing of terrorism law enforcement perspectives, posed by virtual IBANs, and of their benefits, it is necessary to introduce further measures regulating virtual IBANs at Union level; (c) 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; (d) whether, given developments, it is desirable to apply 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. 3. The Commission shall, by … [five years from 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 reviewing: (a) the impact of the surcharging provisions contained in Article 28, including the effects on consumers, merchants, and competition, and shall assess the need for further harmonisation; and (b) the impact of refund mechanisms managed by operators of payment schemes or payment service providers that are applicable to payee-initiated payment transactions, with the exclusion of direct debits, as well as the effects of those refund mechanisms on consumers, merchants and competition; (c) the impact of the provisions contained in Article 61 in relation to obligations imposed on providers of interpersonal communications services in particular, whether those obligations improve the effectiveness of the cooperation between providers of interpersonal communications services and payment service providers under Article 61; (d) the impact of the provisions contained in Article 61 in relation to obligations imposed on providers of hosting services and providers of very large online platforms and of 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 61, 62 and the right of redress for payment service providers under Article 82. On the basis of the assessments referred to in the first subparagraph, points (c) and (d), the Commission shall determine whether it is necessary to introduce any further measures regulating the involvement of providers of electronic communications services, providers of hosting services, providers of very large online platforms and of very large online search engines, and payment service providers, in the security of payment transactions at Union level. Where appropriate, the Commission shall submit a legislative proposal together with its report. 4. The Commission shall, by … [seven years from 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 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 39 and 40; (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 35; (c) the appropriateness and impact of the rules on prevention and redress of fraud on both unauthorised and authorised payment transactions, taking into account types and trends of fraudulent behaviours. (d) the appropriateness and impact of the rules on the extent of situations where a consumer has a refund right for authorised payment transactions in accordance with Article 60. Where appropriate, the Commission shall submit a legislative proposal together with its report. ## Article 118 - Transitional provisions By way of derogation from Directive (EU) 2015/2366, until … [21 months from the date of the entry into force of this Regulation]: (a) the following payment transactions shall be excluded from the application of Directive (EU) 2015/2366: (i) payment transactions made exclusively in electronic money tokens directly from the payer to the payee, without any intermediary intervention; (ii) payment 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; (iii) 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 unable, due to circumstances that are not attributable to them, to comply with the obligations set out in Article 45(1), points (b) and (c), Article 52(2), point (e), Article 52(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 119 - Amendments to Regulation (EU) No 1093/2010 Regulation (EU) No 1093/2010 is amended as follows: (1) in Article 1, paragraph 2 is replaced by the following: ‘2. The Authority shall act within the powers conferred by this Regulation and within the scope of Directive 2002/87/EC, Directive 2009/110/EC, Regulation (EU) No 575/2013*, Directive 2013/36/EU**, Directive 2014/49/EU***, Directive 2014/92/EU****, Regulation (EU) 2023/1114*****, Directive (EU) 2023/2225******, Directive (EU) 2026/…*******, Regulation (EU) 2026/…******** 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. The Authority shall also act in accordance with Council Regulation (EU) No 1024/2013*********. ________________ * Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/575/oj). ** Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC(OJ L 176, 27.6.2013, p. 338, ELI: http://data.europa.eu/eli/dir/2013/36/oj). *** Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149, ELI: http://data.europa.eu/eli/dir/2014/49/oj). **** Directive 2014/92/EU of the European Parliament and of the Council of 23 July 2014 on the comparability of fees related to payment accounts, payment account switching and access to payment accounts with basic features (OJ L 257, 28.8.2014, p. 214, ELI: http://data.europa.eu/eli/dir/2014/92/oj). ***** Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.6.2023, p. 40, ELI: http://data.europa.eu/eli/reg/2023/1114/oj). ****** Directive (EU) 2023/2225 of the European Parliament and of the Council of 18 October 2023 on credit agreements for consumers and repealing Directive 2008/48/EC (OJ L, 2023/2225, 30.10.2023, ELI: http://data.europa.eu/eli/dir/2023/2225/oj). *******Directive (EU) 2026/… of the European Parliament and of the Council of … on payment services in the internal market amending Directive 98/26/EC and Regulation (EU) 2023/1114 and repealing Directives (EU) 2009/110/EC and 2015/2366 (OJ L …, ELI: …). ********Regulation (EU) 2026/… of the European Parliament and of the Council of … on payment services in the internal market and amending Regulations (EU) No 1093/2010, (EU) No 260/2012, (EU) 2017/2394 and (EU) 2021/1230 (OJ L …, ELI: …). *********Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63, ELI: http://data.europa.eu/eli/reg/2013/1024/oj).’; (2) Article 4, point (2), is amended as follows: (a) point (i) is replaced by the following: ‘(i) 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 (vi), (vii) and (viii) are deleted. ## Article 120 - Amendments to Regulation (EU) No 260/2012 Regulation (EU) No 260/2012 is amended as follows: (1) in Article 2, the following point is inserted: ‘(15a)“virtual IBAN” means an identifier which contains the elements specified by ISO as referred to in point (15) and which causes 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) in Article 5c, paragraphs 5 and 6 are replaced by the following: ‘5. Without prejudice to paragraph 6, third subparagraph, 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. 6. 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 of receiving the service ensuring verification have the right to opt in at any time to receiving 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 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 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, that PSP shall not be deemed liable for not having complied with the requirement to offer the service ensuring the verification of the payee.’. ## Article 121 - Amendment to Regulation (EU) 2017/2394 In the Annex to Regulation (EU) 2017/2394, the following point is added: ‘31. Regulation (EU) 2026/… of the European Parliament and of the Council of … on payment services in the internal market and amending Regulations (EU) No 1093/2010, (EU) No 260/2012, (EU) 2017/2394 and (EU) 2021/1230 (OJ L …, ELI: …).’. ## Article 122 - Amendments to Regulation (EU) 2021/1230 Regulation (EU) 2021/1230 is amended as follows: (1) Article 4(1) 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 Article 5(2), Article 13(1), and Article 20(3) of Regulation (EU) 2026/… of the European Parliament and of the Council*, 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(3) 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. ________________ * Regulation (EU) 2026/… of the European Parliament and of the Council of … on payment services in the internal market and amending Regulations (EU) No 1093/2010, (EU) No 260/2012, (EU) 2017/2394 and (EU) 2021/1230 (OJ L …, ELI: …).’; (2) Article 5(1) 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 Article 3, point (53), of Regulation (EU) 2026/…, 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 Article 13(1) and Article 20(3) 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(3) of that Regulation.’. ## Article 123 - Correlation table References to Directives 2009/110/EC and (EU) 2015/2366 shall be construed as a references to Directive (EU) 2026/… or to this Regulation and shall be read in accordance with the correlation table in the Annex to this Regulation. ## Article 124 - 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 … [21 months from the date of entry into force of this Regulation]. However, Articles 51 and 58 shall apply from … [27 months from the date of entry into force of this Regulation]. Articles 92 and 118 shall apply from … [date of entry into force of this Regulation]. This Regulation shall be binding in its entirety and directly applicable in all Member States.