---
instrument_id: psr
chunk_id: psr_t02_ch03
chunk_title: Framework contracts
path: "Title II TRANSPARENCY OF CONDITIONS AND INFORMATION REQUIREMENTS FOR PAYMENT SERVICES > Chapter 3"
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:
  - 18
  - 19
  - 20
  - 21
  - 22
  - 23
  - 24
  - 25
  - 26
topics:
  - payments
  - payment_services
  - framework_contracts
  - information_requirements
  - fraud_prevention
  - authorisation
  - liability
  - refunds
recitals:
  - number: 81c
    text: "Regulation 2022/2065 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act) lays down fully harmonised rules on the provision of intermediary services in the internal market and on specific due diligence obligations tailored to certain specific categories of providers of intermediary services (‘mere conduit’, ‘caching’ and ‘hosting’ services). In particular, it imposes specific due diligence obligations on online platforms and online search engines, including those designated as very large online platforms or very large online search engines. Such due diligence obligations play an important role in preventing the proliferation of illegal content online, such as financial scams. For instance, hosting services providers are obliged to put in place user-friendly notice and action mechanisms to allow the reporting of illegal content, such as illegal offers of financial services or attempted fraud, to the hosting service. Providers of online platforms are also obliged to address notices from trusted flaggers as a priority. Where, based on the information provided by the payer to the payment service provider, or on other information available to the payment service provider, it can be considered that a fraudulent payment transaction originates in an item of information online, payment service providers should make use of the notification mechanisms referred to in Article 16 of Regulation (EU) 2022/2065 to notify providers of hosting services of the presence on their service of that specific item of information. Where Very Large Online Platforms and Very Large Online Search Engines comply with Article 16 of Regulation (EU) 2022/2065, in particular putting in place notice and action mechanisms that are easy to access and user-friendly, this shall be deemed compliant with the condition in Article 59a(3) to inform the recipients of their services of the procedure for reporting fraudulent actions. Payment service providers should also be able to apply for the trusted flagger status pursuant to Article 22 of Regulation (EU) 2022/2065."
  - number: 115
    text: "Under the exemption from SCA under Article 18 of Delegated Regulation (EU) 2018/389, payment service providers were allowed not to apply SCA where the payer initiated a remote electronic payment transaction identified by the payment service provider as posing a low level of risk evaluated on the basis of transaction monitoring mechanisms. Feedback from the market showed however that, in order to have more payment service providers implementing transaction risk analysis, it is necessary to adopt appropriate rules on the scope of such analysis, introducing clear audit requirements, providing more detail and better definitions on risk monitoring requirements and data to share, and to assess the potential benefits of allowing payment service providers to report fraudulent transactions for which they are solely liable. The EBA should develop draft Regulatory Technical Standards laying down rules on transaction risk analysis."
  - number: 121
    text: "Member States should ensure that competent authorities designated by Member States under Article 18 of Directive 2013/11/EU perform the functions set out in Articles 19 and 20 of that Directive regarding dispute resolution entities established on their territories, which intend to qualify as ADR entities for the settlement of disputes concerning the rights and obligations under this Regulation."
---

# Chapter 3 - Framework contracts

## Article 18 - Scope

This Chapter applies to payment transactions covered by a framework contract.

## Article 19 - Prior general information

1. In good time before the payment service user is bound by any framework contract or offer, the payment service provider shall provide the payment service user on paper or on another durable medium with the information and conditions set out in Article 20. The information and conditions shall be given in easily understandable words and in a clear, neutral and comprehensible manner, in an official language of the Member State where the payment service is offered or in any other language agreed between the parties.

2. Where the framework contract has been concluded at the request of the payment service user using a means of distance communication which does not enable the payment service provider to comply with paragraph 1, the payment service provider shall fulfil its obligations under that paragraph immediately after conclusion of the framework contract.

3. Payment service providers may also comply with their obligations under paragraph 1 by providing to payment service users a copy of the draft framework contract including the information and conditions set out in Article 20.

## Article 20 - Information and conditions

The payment service provider shall provide the following information and conditions to the payment service user:

(a) on the payment service provider:

(i) the name of the payment service provider, the geographical address of its head office and, where applicable, the geographical address of its agent or branch established in the Member State where the payment service is offered, and any other address, including electronic mail address, relevant for communication with the payment service provider;

(ii) the particulars of the relevant supervisory authorities designated under Directive (EU) [PSD3] and of the register provided for in Articles 17 and 18 of that Directive or of any other relevant public register of authorisation of the payment service provider and the registration number or equivalent means of identification in that register;

(b) on the use of the payment service:

(i) a description of the main characteristics of the payment service to be provided;

(ii) a specification of the information or unique identifier that has to be provided by the payment service user in order for a payment order to be properly placed or executed;

(iii) the form of and procedure for placing a payment order or giving consent to execute a payment transaction and withdrawal of such consent in accordance with Articles 49 and 66;

(iv) a reference to the time of receipt of a payment order in accordance with Article 64 and the cut-off time, if any, established by the payment service provider;

(v) the maximum execution time for the payment services to be provided;

(vi) the estimated time for the funds of credit transfers to be received by the payment service provider of the payee located outside the Union;

(vii) the spending limits for the use of each payment instrument in accordance with Article 51(1) with information on the length of a delay for any resulting increase in spending limits to come into effect and description of how the payment service user can modify the spending limits and adjust or opt out of the application of a delay period;

(viii) in the case of co-badged card-based payment instruments, the payment service user’s rights under Article 8 of Regulation (EU) 2015/751;

(c) on charges, interest and exchange rates:

(i) all charges payable by the payment service user to the payment service provider including those connected to the manner in and frequency with which information under this Regulation is provided or made available and, where applicable, the breakdown of the amounts of such charges;

(ii) all charges, if any, for domestic, automated teller machines (ATMs) withdrawals payable by payment service users to their payment service provider at an ATM of:

(1) their payment service provider;

(2) a payment service provider belonging to the same network of ATMs as the user’s payment service provider;

(3) a payment service provider belonging to a network of ATMs with whom the user’s payment service provider has a contractual relationship;

(4) an ATM deployer;

   (iii) where applicable, the interest and exchange rates to be applied or, if reference interest and exchange rates are to be used, the method of calculating the actual interest, and the relevant date and index or base for determining such reference interest or exchange rate;

      (iv) where agreed, the immediate application of changes in reference interest or exchange rate and information requirements relating to the changes in accordance with Article 22(3);

      (v) where applicable, the estimated charges for currency conversion services in relation to a credit transfer expressed as a percentage mark-up over an aggregated mid- market exchange rate as referred to in Article 5(4). That mark-up and any other applicable charges, also expressed as a monetary amount in the currency of the payer's account, shall be disclosed to the payer prior to the initiation of each payment transaction;

   (d) on communication:

      (i) where applicable, the means of communication, including the technical requirements for the payment service user’s equipment and software, agreed between the parties for the transmission of information or notifications under this Regulation;

      (ii) the manner in, and frequency with which, information under this Regulation is to be provided or made available;

      (iii) the language or languages in which the framework contract will be concluded and communication during that contractual relationship undertaken;

      (iv) the payment service user’s right to receive the contractual terms of the framework contract and information and conditions in accordance with Article 21;

   (e) on safeguards and corrective measures:

      (i) where applicable, a description of the steps that the payment service user is to take in order to keep safe a payment instrument and how to notify the payment service provider for the purposes of Article 52, point (b);

      (ii) the secure procedure for notification of the payment service user by the payment service provider in the event of suspected or actual fraud or security threats;

      (iii) the conditions under which the payment service provider reserves the right to block a payment instrument in accordance with Article 51;

      (iv) the liability of the payer in accordance with Article 57, Article 59(3) and Article 60, including information on the relevant amount;

      (v) how and within what period of time the payment service user is to notify the payment service provider, and the police in case of impersonation fraud referred to in Article 59 or of any unauthorised or incorrectly initiated or executed payment transaction, in accordance with Article 54;

      (vi) the payment service provider’s liability for unauthorised payment transactions in accordance with Article 56, for the incorrect application of the name and unique identifier matching verification service in accordance with Article 57, and for impersonation fraud in accordance with Article 59;

      (vii) the liability of the payment service provider for the initiation or execution of payment transactions in accordance with Articles 75 and 76;

      (viii) the conditions for refund in accordance with Articles 62 and 63;

   (f) on changes to, and termination of, the framework contract:

      (i) where agreed, information that the payment service user will be deemed to have accepted changes in the conditions in accordance with Article 22, unless the payment service user notifies the payment service provider before the date of their proposed date of entry into force that they are not accepted;

      (ii) the duration of the framework contract;

      (iii) the right of the payment service user to terminate the framework contract and any agreements relating to termination in accordance with Article 22(1) and Article 23;

   (g) on redress:

      (i) any contractual clause on the law applicable to the framework contract or the competent courts;

      (ii) the alternative dispute resolution procedures available to the payment service user in accordance with Articles 90, 94 and 95.

## Article 21 - Accessibility of information and conditions of the framework contract

At any time during the contractual relationship the payment service user shall have a right to receive, on request, the contractual terms of the framework contract and the information and conditions set out in Article 20 on paper or on another durable medium.

## Article 22 - Changes to the framework contract

1. The payment service provider shall propose any changes to the framework contract, including to the information and conditions set out in Article 20, in the same way as provided for in Article 19(1) and no later than 2 months before their proposed date of application. The payment service user can either accept or reject the changes before the date of their proposed date of entry into force.

2. Where applicable, in accordance with Article 20, point (f)(i), the payment service provider shall inform the payment service user that the payment service user is to be deemed to have accepted those changes if the payment service user does not notify the payment service provider before the proposed date of their entry into force that they are not accepted. The payment service provider shall also inform the payment service user that, if the payment service user rejects those changes, the payment service user has the right to terminate the framework contract free of charge and with effect at any time until the date when the changes would have applied.

3. Changes in the interest or exchange rates may be applied by the payment service provider immediately and without notice, provided that such a right is agreed upon in the framework contract and that the changes in the interest or exchange rates are based on the reference interest or exchange rates agreed on in accordance with Article 20, point (c)(iii) and (iv). The payment service provider shall inform the payment service user of any change in the interest rate at the earliest opportunity in the same way as provided for in Article 19(1), unless the parties have agreed on a specific frequency or manner in which the information is to be provided or made available. However, changes in interest or exchange rates which are more favourable to the payment service users, may be applied by the payment service provider without notice.

4. The payment service provider shall implement and calculate changes in the interest or exchange rate used in payment transactions in a neutral manner that does not discriminate against payment service users.

## Article 23 - Termination

1. The payment service user may terminate the framework contract at any time, unless the parties have agreed on a period of notice. Such a period shall not exceed 1 month.

2. Termination of the framework contract shall be free of charge for the payment service user except where the contract has been in force for less than 3 months. Charges, if any, for termination of the framework contract shall be appropriate and in line with costs. Where, under the framework contract, payment services are offered jointly with technical services aimed at supporting the provision of payment services and provided by the payment service provider or by a third party the payment service provider has partnered with, such technical services shall be subject to the same framework contract requirements on termination fees.

3. If agreed in the framework contract, the payment service provider may terminate a framework contract concluded for an indefinite period by giving at least 3 months’ notice in the same way as provided for in Article 19(1).

4. Charges for payment services levied on a regular basis shall be payable by the payment service user only proportionally up to the termination of the contract. If such charges are paid in advance, those charges shall be reimbursed proportionally by the payment service provider.

5. The provisions of this Article are without prejudice to the Member States’ laws and regulations governing the rights of the parties to declare the framework contract unenforceable or void.

6. Member States may provide for more favourable provisions on termination for payment service users.

7. Member States shall by [ OP please insert the date = data of application of this Regulation] notify to the Commission the provisions of their law adopted pursuant to paragraph 6. They shall, without delay, notify any subsequent amendment to such provisions.

## Article 24 - Information before execution of individual payment transactions

In the case of an individual payment transaction initiated by the payer under a framework contract, a payment service provider shall, at the payer’s request for this specific payment transaction, provide, prior to the initiation of the payment transaction, explicit information on all of the following:

(a) the maximum execution time;

(b) the charges payable by the payer;

(c) where applicable, a breakdown of the amounts of any charges.

## Article 25 - Information for the payer on individual payment transactions

1. After the amount of an individual payment transaction is debited from the payer’s account or, where the payer does not use a payment account, after receipt of the payment order, the payer’s payment service provider shall provide the payer, without undue delay and in the same way as laid down in Article 19(1), with all of the following information:

   (a) a reference enabling the payer to identify each the payment transaction and the information needed to unambiguously identify the payee, including the payee’s commercial trade name and, where available to the payment service provider and if different from the commercial trade name, the payee’s legal name;

   (b) the amount of the payment transaction in the currency in which the payer’s payment account is debited or in the currency used for the payment order;

   (c) the amount of any charges for the payment transaction and, where applicable, a breakdown of the amounts of such charges, or the interest payable by the payer;

   (d) where applicable, the exchange rate used in the payment transaction by the payer’s payment service provider, and the amount of the payment transaction after that currency conversion;

   (e) the debit value date or the date of receipt of the payment order.

2. A framework contract shall include a condition that the payer may require the information referred to in paragraph 1 to be provided or made available periodically, at a frequency to be determined by the payer of up to at least once a month, free of charge and in an agreed manner which allows the payer to store and reproduce information unchanged.

3. Member States may require payment service providers to provide information on paper or on another durable medium at least once a month, free of charge.

4. Member States shall by [ OP please insert the date = data of application of this Regulation] notify to the Commission the provisions of their law adopted pursuant to paragraph 3. They shall, without delay, notify any subsequent amendment to such provisions.

## Article 26 - Information for the payee on individual payment transactions

1. After the execution of an individual payment transaction, the payee’s payment service provider shall provide the payee without undue delay in the same way as laid down in Article 19(1) with all of the following information:

   (a) a reference enabling the payee to identify the payment transaction and the payer, and any information transferred with the payment transaction;

   (b) the amount of the payment transaction in the currency in which the payee’s payment account is credited;

   (c) the amount of any charges for the payment transaction and, where applicable, a breakdown of the amounts of such charges, or the interest payable by the payee;

   (d) where applicable, the exchange rate used in the payment transaction by the payee’s payment service provider, and the amount of the payment transaction before that currency conversion;

   (e) the credit value date.

2. A framework contract may include a condition that the information referred to in paragraph 1 is to be provided or made available periodically, at least once a month and in an agreed manner which allows the payee to store and reproduce information unchanged.

3. Member States may require payment service providers to provide information on paper or on another durable medium at least once a month, free of charge.

4. Member States shall by [ OP please insert the date = data of application of this Regulation] notify to the Commission the provisions of their law adopted pursuant to paragraph 3. They shall, without delay, notify any subsequent amendment to such provisions.